Key Post Switch or re-fix my mortgage? Breakage fee calculator and savings estimates for your case (Ireland)

@boomshine Your break fee should be zero at the moment – but confirm it with Permanent TSB. If it is higher than zero, please post it here when you receive it, including the date of the letter.
  • Switching immediately to Bank of Ireland's 5-year green fixed rate (2.95% with €4,180 cashback) will save you about €4,140 over the next 4 years
    • Note that Bank of Ireland discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Bank of Ireland customer right now, the best rate you would be able to switch to today is 3.25%
    • So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).

  • Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €3,980 over the next 4 years

  • Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will save you about €2,360 over the next 4 years

  • Switching immediately to Bank of Ireland's 10-year green fixed rate (3.25% with €4,180 cashback) will save you about €1,680 over the next 4 years – but with the longer security of 10 years on a fixed rate
    • The same warnings as above regarding higher Bank of Ireland rates in the future apply

  • Switching immediately to Haven's 4-year green fixed rate (3.0% with €2,000 cashback) will save you about €1,540 over the next 4 years
    • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site

  • Switching immediately to AIB's 5-year green fixed rate (3.15% with €2,000 cashback) will save you about €320 over the next 4 years
    • And it is quite likely that you will be able to make unlimited overpayments without penalty for the foreseeable future (see this thread)
    • For the same reason, it is unlikely that there will be a break fee if you break out of this fixed rate to move home within the next few years

  • Switching immediately to Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €80 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to Permanent TSB's 5-year green fixed rate (3.15% with 2% monthly cashback) will leave you worse off by about €220 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • This assumes that you are eligible for the 2% monthly cashback – you may not be

  • Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €3,760 over the next 4 years – but with the longer security of 10 years on a fixed rate

  • Switching immediately to Haven's 7-year fixed rate (3.65% with €2,000 cashback) will leave you worse off by about €3,760 over the next 4 years – but with the longer security of 7 years on a fixed rate
    • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site

  • Switching immediately to Permanent TSB's 7-year fixed rate (3.65% with 2% monthly cashback) will leave you worse off by about €4,320 over the next 4 years – but with the longer security of 7 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • This assumes that you are eligible for the 2% monthly cashback – you may not be

  • Switching immediately to Avant Money's "One Mortgage" (a 3.5% fixed rate with no cashback) will leave you worse off by about €4,560 over the next 4 years – and the interest rate will be fixed for the remainder of your mortgage term (approximately 28 years)

  • Switching immediately to Haven's 10-year fixed rate (3.85% with €2,000 cashback) will leave you worse off by about €5,400 over the next 4 years – but with the longer security of 10 years on a fixed rate
    • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site

The above AIB and Haven rates include their rate increases of 25th November 2022.

These savings estimates use for comparison the scenario of switching to a 3.15% rate with Permanent TSB when the current fixed rate ends. And that's assuming that Permanent TSB are even offering a 3.15% rate in January 2023 – it could be higher (or lower). The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

All of Avant's rates allow you to avoid any potential break fee if you move home in the future (as long as you take out a new mortgage with them, and subject to certain conditions).

Bear in mind that the interest rates of some lenders are very likely to rise between now and the time that you complete any switch, so if you are thinking of switching you should apply simultaneously to two or more lenders for approval in principle (AIP).

Dates of the most-recent interest rate increases:
  • AIB, EBS and Haven: 25th November 2022 and 14th October 2022
  • Permanent TSB: 18th November 2022
  • Bank of Ireland: 10th November 2022
  • Avant: 15th August 2022 and 16th May 2022
Even though it is usually quick to re-fix with your current lender, it is still possible for rates to rise while you are in the middle of the process, which could potentially leave you worse off than if you had done nothing. Ask Permanent TSB if they will guarantee today's rates for you if you start the process of re-fixing with them.
 
Sean Og2 said:
A bit harsh Paul F,
Click to expand...
Perhaps, but doing multiple switches for cashback comes with risks. And the idea is to do them at pretty much the same time, not six weeks apart. Doing them around Christmastime, when everything takes longer, and in an environment of rising interest rates, seems like asking for trouble.
 
Hi Paul, thank for your help to date.

Have again got delayed with this...and will pay the price with increased rates as a result!

My updated current situation:

Current lender: BOI
Outstanding mortgage balance: 272k
Approximate value of your property: c500k (bought for 420k in 2018, increase based on sales of similar houses on road recently)
The date you started your fixed-rate mortgage: Sep 2018
How many years you fixed for: 5 years
Your current mortgage interest rate: 2.9%
Your current monthly repayment: 1641 (paying over 20 years)
Your property's BER: C3
Are you due to get extra cashback from your current lender in the future: Yes, c3200 in Sep 2023

Option 1 - Refix with BOI
- Spoke with BOI - can refix now to 3% for 5 years and still get cashback owed in Sep 2023 (€3200). No breakage fee
- If I do this I would likely pay off a lump sum from my remaining mortgage amount (€272k), reducing this to c€200k

Option 2 - 'Switch' to BOI
- I've also been made aware of a loophole where, if you go through a Broker, I could come in through Gov Co and get brand new HVM lower rates
- This would be 2.8% for 7 years
- However, the most I could reduce the remaining mortgage amount down to would be €250k (to avail of the HVM rate)

Based on the above, am I correct in my assumption that - in the long run - Option 1 is more prudent? With a lower cost of credit ultimately?

Would also appreciate any additional advice you had on alternative options to consider
 
@squareone Your break fee should be zero at the moment.

In the below estimates, I assume that your balance is €272k.
  • Switching immediately to Permanent TSB's 5-year fixed rate (2.95% with €5,440 initial cashback and 2% monthly cashback) will save you about €4,380 over the next 4 years
    • Note that Permanent TSB's interest rates have usually been much higher than other lenders over the past several years. If this pattern resumes, switching to Permanent TSB will cost you a lot more than a cheaper lender over the long term (even accounting for the cashback)
    • So if you switch to them now, you may want to switch again to another lender in the future, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated)

  • Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€3,200) cashback) will save you about €1,800 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

  • Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% and you would get the 1% (€3,200) cashback) will leave you worse off by about €1,400 over the next 4 years – but with the longer security of 10 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

  • Switching immediately to Permanent TSB's 7-year fixed rate (3.65% with €5,440 initial cashback and 2% monthly cashback) will leave you worse off by about €2,660 over the next 4 years – but with the longer security of 7 years on a fixed rate
    • The same warnings as above regarding higher Permanent TSB rates in the future apply

  • Switching immediately to AIB's 4-year fixed rate (3.2% with €2,000 cashback) will leave you worse off by about €2,900 over the next 4 years

  • Switching immediately to Haven's 7-year fixed rate (3.65% with €5,000 cashback) will leave you worse off by about €4,480 over the next 4 years – but with the longer security of 7 years on a fixed rate
    • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site

  • Switching immediately to Haven's 10-year fixed rate (3.85% with €5,000 cashback) will leave you worse off by about €6,540 over the next 4 years – but with the longer security of 10 years on a fixed rate
    • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site

  • Switching immediately to Avant Money's 4-year fixed rate (3.4% with no cashback) will leave you worse off by about €6,960 over the next 4 years

  • Switching immediately to Avant Money's 5-year fixed rate (3.65% with no cashback) will leave you worse off by about €9,520 over the next 4 years

  • Switching immediately to Avant Money's "One Mortgage" (a 4.3% fixed rate with no cashback) will leave you worse off by about €16,200 over the next 4 years – and the interest rate will be fixed for the remainder of your mortgage term (approximately 18 years)
    • The monthly repayment would be €1,834

Bank of Ireland's rate increases of 10th November 2022 do not apply to existing BOI customers who want to re-fix (for the moment), and so they have not been applied when generating the above estimates. This benefit could be removed soon.

These savings estimates use for comparison the scenario of switching to a 3.25% rate with Bank of Ireland when the current fixed rate ends. And that's assuming that Bank of Ireland are even offering a 3.25% rate in September 2023 – it could be higher (or lower). You would get the Bank of Ireland €3,200 future cashback in such a scenario, and the savings estimates account for this. The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

All of Avant's rates allow you to avoid any potential break fee if you move home in the future (as long as you take out a new mortgage with them, and subject to certain conditions).

Bear in mind that the interest rates of some lenders are very likely to rise between now and the time that you complete any switch, so if you are thinking of switching you should apply simultaneously to two or more lenders for approval in principle (AIP).

Dates of the most-recent interest rate increases:
  • Avant: 8th December 2022, 15th August 2022 and 16th May 2022
  • AIB, EBS and Haven: 25th November 2022 and 14th October 2022
  • Permanent TSB: 18th November 2022
  • Bank of Ireland: 10th November 2022
Even though it is usually quick to re-fix with your current lender, it is still possible for rates to rise while you are in the middle of the process, which could potentially leave you worse off than if you had done nothing. Ask Bank of Ireland if they will guarantee today's rates for you if you start the process of re-fixing with them.


Where did you hear about this alleged loophole? Do you know of anyone who has successfully exploited it?

What does "Gov Co" mean?
 
Hi there, here is my info:

Current lenderPTSB
If your current lender is Permanent TSB, was your mortgage transferred to them from Ulster Bank?YES
Outstanding mortgage balance (how much you still owe)180k
Approximate current value of your property580k
The date you started your fixed-rate mortgage (month and year)11/20
How many years you fixed for2
Your current mortgage interest rate2.3%
Your current monthly repayment (excluding any overpayments)1,208.30
Your property's BER (Building Energy Rating) – check it here or estimate it if necessaryB3
Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much (monetary amount) and when?No

Additional important information:

2.3% expires end of December 2022 if new rate/term not selected rate goes to variable 3.5%

We will be selling our home within the next 12 months


Thank you
 
Clearly wasted my time posting here and lost 4 days!

A courteous‘I’m busy’ would have been appreciated given the deadline
 
slowearner said:
2.3% expires end of December 2022 if new rate/term not selected rate goes to variable 3.5%
Click to expand...
The variable rate is 3.6% (but it could rise).

You can fix at 3.15% for three years but you might face a break fee when you move home.

Or you could contact Bank of Ireland and see if they are still offering their Mover Mortgage:

"bring your Bank of Ireland fixed rate with you" – any experience of this mortgage feature?

I spotted the following on this Bank of Ireland webpage (and also here, in the T&Cs): Movers: You can bring your Bank of Ireland fixed rate with you to your new mortgage loan without penalty subject to drawing down your new mortgage within 6 months of redeeming your old Bank of Ireland...
www.askaboutmoney.com

But their rates could increase by the time you switch, and you'd have to pay solicitors' fees twice (once to switch and again when you move home).

slowearner said:
Clearly wasted my time posting here and lost 4 days!

A courteous‘I’m busy’ would have been appreciated given the deadline
Click to expand...
And a Happy Christmas to you too.
 
Last edited:
  • Current lender Avant
  • If your current lender is Permanent TSB, was your mortgage transferred to them from Ulster Bank? N/A
  • Outstanding mortgage balance (how much you still owe) €392,000
  • Approximate current value of your property €660,000
  • The date you started your fixed-rate mortgage (month and year) December 2020
  • How many years you fixed for 3 years
  • Your current mortgage interest rate 2.1%
  • Your current monthly repayment (excluding any overpayments) €1558.50
  • Your property's BER (Building Energy Rating) – check it here or estimate it if necessary C2
  • Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much (monetary amount) and when? No
Hi, Just wondering if anyone could help us figure out what is best to do. We have one year left on our fixed rate, we are trying to decide whether to break the fixed rate and refix with Avant. We requested an offer letter on this before they increased their rates so we have been offered 3 years at 2.35%, 4 years at 2.55%, or 5 years at 2.75%. Avant have told us that we wont have a break fee to switch to nay of these (probably as the new rate will be higher).

Alternatively, we are thinking of possibly switching to TSB, their 5 year rate is 2.95& and we could get 2% cashback and 2% off repayments. Although there is the hassle and cost of moving mortgages to factor in too. We have switched before though and are willing to do it again if the savings are worth it. We have started the process with TSB though just in case rates increase again. We are expecting to hear back from their underwriter in the next few days.
 
@PrincessPeach Your break fee should be zero at the moment.
  • Switching immediately to Permanent TSB's 5-year fixed rate (2.95% with €7,840 initial cashback and 2% monthly cashback) will save you about €7,800 over the next 4 years
    • Note that Permanent TSB's interest rates have usually been much higher than other lenders over the past several years. If this pattern resumes, switching to Permanent TSB will cost you a lot more than a cheaper lender over the long term (even accounting for the cashback)
    • So if you switch to them now, you may want to switch again to another lender in the future, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated)

  • Switching immediately to Avant Money's 4-year fixed rate (2.55% with no cashback) will save you about €5,900 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • I am assuming that your Avant offer letter is still valid

  • Switching immediately to Avant Money's 5-year fixed rate (2.75% with no cashback) will save you about €2,860 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • I am assuming that your Avant offer letter is still valid

  • Switching immediately to Bank of Ireland's 7-year fixed rate (2.8% with no cashback) will save you about €840 over the next 4 years – but with the longer security of 7 years on a fixed rate
    • Note that Bank of Ireland discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Bank of Ireland customer right now, the best rate you would be able to switch to today is 3.25%
    • So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).

  • Switching immediately to Avant Money's 7-year fixed rate (3.05% with no cashback) will leave you worse off by about €1,700 over the next 4 years – but with the longer security of 7 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • I am assuming that Avant offered you the option of re-fixing at this rate and that your offer letter is still valid

  • Switching immediately to Permanent TSB's 7-year fixed rate (3.65% with €7,840 initial cashback and 2% monthly cashback) will leave you worse off by about €2,780 over the next 4 years – but with the longer security of 7 years on a fixed rate
    • The same warnings as above regarding higher Permanent TSB rates in the future apply

  • Switching immediately to Bank of Ireland's 10-year fixed rate (3.55% with €7,840 cashback) will leave you worse off by about €2,780 over the next 4 years – but with the longer security of 10 years on a fixed rate
    • The same warnings as above regarding higher Bank of Ireland rates in the future apply

  • Switching immediately to AIB's 4-year fixed rate (3.2% with €2,000 cashback) will leave you worse off by about €3,260 over the next 4 years

  • Switching immediately to Haven's 7-year fixed rate (3.65% with €5,000 cashback) will leave you worse off by about €7,160 over the next 4 years – but with the longer security of 7 years on a fixed rate
    • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site

  • Switching immediately to Avant Money's 10-year fixed rate (3.5% with no cashback) will leave you worse off by about €8,600 over the next 4 years – but with the longer security of 10 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • I am assuming that Avant offered you the option of re-fixing at this rate and that your offer letter is still valid

  • Switching immediately to Haven's 10-year fixed rate (3.85% with €5,000 cashback) will leave you worse off by about €10,240 over the next 4 years – but with the longer security of 10 years on a fixed rate
    • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site

  • Switching immediately to Avant Money's "One Mortgage" (a 3.65% fixed rate with no cashback) will leave you worse off by about €10,900 over the next 4 years – and the interest rate will be fixed for the remainder of your mortgage term (approximately 28 years). And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • I am assuming that Avant offered you the option of re-fixing at this rate and that your offer letter is still valid

  • Switching immediately to AIB's 10-year fixed rate (4.2% with €2,000 cashback) will leave you worse off by about €18,640 over the next 4 years – but with the longer security of 10 years on a fixed rate

These savings estimates use for comparison the scenario of switching to a 3.25% rate with Avant Money when the current fixed rate ends. And that's assuming that Avant Money are even offering a 3.25% rate in December 2023 – it could be higher (or lower). The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

All of Avant's rates allow you to avoid any potential break fee if you move home in the future (as long as you take out a new mortgage with them, and subject to certain conditions).

The estimates also assume that your loan-to-value ratio (LTV) really is below 60% so that you are eligible for the listed rates. Your LTV estimate is 392.0k/660.0k = 59.4%. If you get a valuation of less than €654k, you will need to make a few more monthly mortgage payments and/or a lump sum overpayment to get the LTV below 60%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

Bear in mind that the interest rates of some lenders are very likely to rise between now and the time that you complete any switch, so if you are thinking of switching you should apply simultaneously to two or more lenders for approval in principle (AIP).

Dates of the most-recent interest rate increases:
  • Avant: 8th December 2022, 15th August 2022 and 16th May 2022
    • But I have assumed that you are still eligible for all of the rates that Avant were offering before 8th December 2022
  • AIB, EBS and Haven: 25th November 2022 and 14th October 2022
  • Permanent TSB: 18th November 2022
  • Bank of Ireland: 10th November 2022
 
Thanks Paul, much appreciated, plenty to think about there. We are waiting on the TSB underwriters to get back to us in the next 5 working days. Assuming all is ok with that we will probably switch.

Our offer letter with Avant is valid until mid-January, so if anything falls through with TSB we will opt for the four year rate with Avant.
 
PrincessPeach said:
Our offer letter with Avant is valid until mid-January, so if anything falls through with TSB we will opt for the four year rate with Avant.
Click to expand...
That's interesting. What is the date that the letter was issued on?

Did they also offer you the 7-year, 10-year and "One Mortgage" rates that I listed?

Be aware that you can't "lock in" Permanent TSB's current rates until you get a formal loan offer (a letter of offer) from them. So if the Avant deadline is approaching in mid January and you still don't have a formal loan offer from PTSB, you run the risk of another rate increase from PTSB and also missing out on Avant's pre-increase rates.
 
We finally got our mortgage switched to PTSB in December. Thank you for the initial advice Paul that got us started on the journey. Took a while but worth it with the savings involved and the security of getting the five years fixed rate in place.
 
  • Current lender: PTSB, yes was transferred from Ulster Bank
  • Outstanding mortgage balance: 240,000
  • Approximate current value of your property: 500,000
  • The date you started your fixed-rate mortgage: Mar 2020 I think
  • How many years you fixed for: 3 years
  • Your current mortgage interest rate: 2.25%
  • Your current monthly repayment (excluding any overpayments): 1683
  • Your property's BER (Building Energy Rating): D2
  • Are you due to get extra cashback from your current lender in the future? No
  • Did you use a broker when you took out your current mortgage? No
Thank you.
 
  • Current lender: BOI
  • Outstanding mortgage balance: 331,000
  • Approximate current value of your property: 900,000
  • The date you started your fixed-rate mortgage: Jan 2021
  • How many years you fixed for: 5 years
  • Your current mortgage interest rate: 3%
  • Your current monthly repayment (excluding any overpayments): 1661
  • Your property's BER (Building Energy Rating): B2
  • Are you due to get extra cashback from your current lender in the future? Yes 3 years time €3,480
  • Did you use a broker when you took out your current mortgage? No
Thank you.
 
@Jollyman
As I mentioned in another post, there's currently zero break fee for you. I would break and refix immediately at the same rate. The only benefit is locking in the rate for longer, which helps with your famiky budgetting. The downside is that there might be a break fee in future if you overpay in excess of the allowance BOI provides.

It's highly unlikely that a better rate will still be available anywhere else by the time you get through a switching process.
 
Redonion,

Confirmed with BOI no break fee earlier, see below list from BOI would i be better off moving to the HVM 7 Year fixed is what im wondering. Looking at rates out there the 3% im on currently is as good as you can get at the moment.

Product Ltv DescriptionInterest RateAPR
1 Year Fixed LTV >80%2.94.4
2 Year Fixed LTV >80%2.94.3
3 Year Fixed LTV >80%34.1
5 Year Fixed LTV >80%33.9
10 Year Fixed LTV >80%3.53.8
Variable LTV >80%4.54.6
1 Year Fixed LTV >80%3.154.5
2 Year Fixed LTV >80%3.154.3
3 Year Fixed LTV >80%3.254.2
5 Year Fixed LTV >80%3.254
4 Year Fixed HVM* LTV >80%2.453.8
5 Year Fixed HVM* LTV >80%2.753.8
7 Year Fixed HVM* LTV >80%2.83.5
10 Year Fixed LTV >80%3.754
 
Jollyman said:
Confirmed with BOI no break fee earlier, see below list from BOI would i be better off moving to the HVM 7 Year fixed is what im wondering.
Click to expand...
Are you eligible for the HVM rate? I understood that was for new business only.
Grab it if they offer it to you!
 
Jollyman said:
Confirmed with BOI no break fee earlier, see below list from BOI would i be better off moving to the HVM 7 Year fixed is what im wondering.
Click to expand...
You are not eligible for those HVM rates (you are an existing BOI customer). I'll do a more detailed reply later.
 
RedOnion said:
Are you eligible for the HVM rate? I understood that was for new business only.
Grab it if they offer it to you!
Click to expand...
Thanks Paul F & Redonion, ok i hadnt read the asterix against those it states the following:-

*The existing Rates detailed in the above table are only available to you if you have an existing Bank of Ireland Mortgage account and wish to Fix your Mortgage Rate.
Go to the ‘Mover’ tab for the rates that are available to you if you are moving property or looking to apply for an Equity Release.
 
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