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


You're actually looking at the wrong asterisk explanation. This one is the one that is relevant to the HVM rates:
 
@aam514 Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so 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 fixed rate (3.25% with €4,800 cashback) will save you about €2,860 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
    • 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).
    • Ask Bank of Ireland if they will let you top up your mortgage by ~10k while switching and if that would make you eligible for their 2.45% "high value" 4-year fixed rate

  • Switching immediately to Bank of Ireland's 10-year fixed rate (3.55% with €4,800 cashback) will save you about €260 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 Permanent TSB's 5-year fixed rate (3.25% with no cashback) will leave you worse off by about €480 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • Ask PTSB if they will let you top up your mortgage by ~10k and if that would make you eligible for their 2.95% "high value" 5-year fixed rate (or their 2.65% 3-year fixed rate). Tell them that you will switch lender if they don't offer you that rate.

  • Switching immediately to AIB's 5-year fixed rate (3.35% with €2,000 cashback) will leave you worse off by about €800 over the next 4 years
    • Ask AIB if they will let you top up your mortgage by ~10k while switching. If they do you will be eligible for their 3.2% "high value" 4-year fixed rate.

  • Switching immediately to Haven's 7-year fixed rate (3.65% with €2,000 cashback) will leave you worse off by about €3,420 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
    • Ask Haven if they will let you top up your mortgage by ~10k while switching. If they do you will be eligible for €5,000 cashback.

  • Switching immediately to Permanent TSB's 7-year fixed rate (3.65% with no cashback) will leave you worse off by about €3,960 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).

  • Switching immediately to Haven's 10-year fixed rate (3.85% with €2,000 cashback) will leave you worse off by about €5,160 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
    • Ask Haven if they will let you top up your mortgage by ~10k while switching. If they do you will be eligible for €5,000 cashback.

  • Switching immediately to Avant Money's "One Mortgage" (a 4.3% fixed rate with no cashback) will leave you worse off by about €11,160 over the next 4 years – and the interest rate will be fixed for the remainder of your mortgage term (approximately 14 years)

These savings estimates use for comparison the scenario of switching to a 3.25% rate with Permanent TSB when the current fixed rate ends. And that's assuming that Permanent TSB are even offering a 3.25% rate in March 2023 – it could be higher (or lower). If you're going to re-fix with PTSB you should do it now – their rates might have increased if you wait until March. 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 Permanent TSB if they will guarantee today's rates for you if you start the process of re-fixing with them.
 
@Jollyman Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Bank of Ireland. If it is higher than zero, please post it here when you receive it, including the date of the letter.
  • Switching immediately to Permanent TSB's 5-year green fixed rate (2.8% with €6,620 initial cashback and 2% monthly cashback) will save you about €6,200 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)

  • Re-fixing immediately on Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€3,480) cashback) will save you about €700 over the next 4 years, and it will "reset the clock" on the fixed-rate period. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

  • Switching immediately to Haven's 4-year green fixed rate (3.0% with €2,000 cashback) will leave you worse off by about €2,220 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 Bank of Ireland's 10-year fixed rate (3.3% and you would get the 1% (€3,480) cashback) will leave you worse off by about €3,260 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 AIB's 5-year green fixed rate (3.1% with €2,000 cashback) will leave you worse off by about €3,500 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 Permanent TSB's 7-year fixed rate (3.65% with €6,620 initial cashback and 2% monthly 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
    • The same warnings as above regarding higher Permanent TSB rates in the future apply

  • Switching immediately to Avant Money's "One Mortgage" (a 4.3% fixed rate with no cashback) will leave you worse off by about €20,900 over the next 4 years – and the interest rate will be fixed for the remainder of your mortgage term (approximately 23 years)

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 quite 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 January 2026 – it could be higher (or lower). You would get the Bank of Ireland €3,480 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.
 
Thanks so much for the review. So it goes to show BOI Predatory rates as you reference for existing customers with the 2.8% for 7 years! In an ideal world volitility of rates aside you could switch to PTSB take the €6,620 break after 45 days and then I’d qualify for the HVM 7 year mortgage with BOI? Assuming rates didn’t change in the intervening period.

I spoke to them on the phone they confirmed no cost currently for breaking, in due out a pack by e mail tomorrow with rates they will offer me for refixing I’ll post the options.

Just reading on there site also I submitted a BER OF B2 with my application in Jan 21 I should have been getting the .3% off my rate for a green mortgage is there a process to appeal or address items like this with BOI?

“Green Mortgage Fixed Interest Rate​

The Green Mortgage fixed interest rate is a discount (reduction) of 0.30% that we apply to our standard mortgage loan fixed rates. The Green Mortgage fixed interest rate is available to you if you are buying a property that has a Building Energy Rating (BER) of B3 or better or are borrowing to build or up-grade your home so that it has a BER rating of B3 or better or if you are switching your mortgage loan to us from another lender, AND you draw down your new mortgage loan prior to 31st December 2023. Click here for full details and terms and conditions.”

Could you please confirm would I qualify for the below if I was to add say €15k to the mortgage on top of my existing cash back??

Equity Release - Manage My Mortgage - Bank of Ireland

We may be able to help when you need to top up your mortgage for home improvements, educational or medical expenses.
personalbanking.bankofireland.com
 
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Jollyman said:
In an ideal world volitility of rates aside you could switch to PTSB take the €6,620 break after 45 days and then I’d qualify for the HVM 7 year mortgage with BOI? Assuming rates didn’t change in the intervening period.
Click to expand...
No, most lenders require you to have been with your current lender for at least 12 months before they will let you switch to them.

Jollyman said:
Just reading on there site also I submitted a BER OF B2 with my application in Jan 21 I should have been getting the .3% off my rate for a green mortgage is there a process to appeal or address items like this with BOI?
Click to expand...
Did you switch to Bank of Ireland from another lender, or were you a home mover/first-tme buyer, in January 2021? If you fell into any of those categories, you should have got the 0.3% green discount (assuming you provided the BER cert before you got your loan offer). That's also assuming that BOI were offering the green discount back then. If they were, it might only have been 0.2%

You should complain to BOI and seek a refund of the amount you overpaid. If they refuse, get them to confirm that that is their final response. Then raise a complaint with the Ombudsman.

Edit: As @RedOnion says in a below post, back in January 2021 the Bank of Ireland green mortgage was only for homes with a BER of A2 or better. And it was not available to switchers. See this archived webpage.

Jollyman said:
Could you please confirm would I qualify for the below if I was to add say €15k to the mortgage on top of my existing cash back??
Click to expand...
Are you referring to this line?
  • When you release equity in your home we'll give you 2% of your new mortgage back as Cashback. Cashback is not available with the High Value Mortgage fixed interest rate.
Click to expand...
It's almost impossible that they mean they they will give you 2% of your entire mortgage balance back in cash. Maybe they mean that they will give you 2% of €15,000 back in cash. But who knows – the wording is ambiguous.
 
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Yes I switched from EBS after 12 years with them yes provide BER with submission.
See T&C’s below

  • Terms and Conditions
    • The 2% Cashback Mortgage offer is available to you if:
    (i)You use your mortgage loan:
    • to buy a home in the Republic of Ireland to live in yourself (as a First Time Buyer or Mover), or
    • to switch your mortgage loan to us from another lender (outside the Bank of Ireland Group) by re-mortgaging the house you live in, or
    • to top-up a mortgage, or
    • to buy a property to let or for investment; AND
    (ii) You draw down your new mortgage loan between 5th September 2016 and 31st December 2023.
    • The 2% Cashback Mortgage Offer is available whether you chose a fixed or variable rate for your mortgage.
    • 2% cashback payment will be 2% of the amount you borrow under your mortgage loan offer letter. The payment will be made into your mortgage-paying current account within 45 days of drawdown of your mortgage.
    • Cashback is not available with the High Value Mortgage fixed interest rate.

    If you draw down your mortgage in stages (e.g. for a self-build):​

    • The first drawdown must be made between 5th September 2016 and 31st December 2023 to qualify for the offer.
    • In addition, final drawdown must be made within 18 months of first drawdown
    • The 2% Cashback will be paid within 45 days of the final stage drawdown and will be 2% of the amount you borrow under your initial mortgage loan offer letter(any additional lending is excluded from the calculation, e.g. a top-up mortgage loan).
    • The 2% Cashback Mortgage offer is not available for any mortgage where you do not borrow as a consumer.
    • We reserve the right to withdraw the 2% Cashback Mortgage Offer at any time at our discretion, for example, to reflect any changes in law or regulation or how they are interpreted. If we do withdraw the offer before 31st December 2023, we will notify the public of this by putting an advertisement on our website and in at least one national newspaper.
 
@Jollyman
You only get cashback on the additional drawdown amount when you do an equity release, not the full outstanding balance.
There is a more complete wording where it's clearer.

Jollyman said:
Just reading on there site also I submitted a BER OF B2 with my application in Jan 21 I should have been getting the .3% off my rate for a green mortgage is there a process to appeal or address items like this with BOI?
Click to expand...
That was only launched in July 2021.
At the time you drew down, BOI were only offering a discount to 'A' rated homes.
 
Thanks Redonion,

That makes sense I knew I would have chased it if applicable at the time and you have jogged my memory. From reading if I top up by the minimum €15k when refixing I’ll get 2% of that back but would also allow me introduce my B2 cert and get the .3% off going forward?? Worth a shot??
 
Ah, I missed your question.

No.

"or (b) if you are topping up an existing mortgage with us to upgrade your property to achieve a BER rating of B3 or better (the Green Mortgage fixed interest rate will only apply to the top-up Equity Release and not to the existing loan)."
 
Thanks folks so stick as i am really is the best option. Ill keep you updated with the offers that come back.
 
Hi Paul,

Current lender: PTSB
Outstanding mortgage balance (how much you still owe): 214,900
Approximate current value of your property: 450,000
The date you started your fixed-rate mortgage (month and year): 30/06/2019
How many years you fixed for: 4 yrs.
Your current mortgage interest rate: 2.6%
Your current monthly repayment (excluding any over payments): 1,331.62
Your property's BER (Building Energy Rating): C1
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 in advance for reviewing.
 
Thank you @Paul F, much appreciated.

Alternatively, I am considering these 3 options below, a 3 or 4 year fixed term is most appealing to me. I don't like the thought of cashback and obviously would rather stay with PTSB to save on switching cost if I can. I won't be moving home. Any thoughts?

Option 1 - might only be available to new business but I can ask?
4 year fixed with PTSB
Rate 2.7%
Monthly Repayment: 1717

Option 2
3 year fixed with PTSB
Rate 3.15%
Monthly Repayment: 1768

Option 3
3 year fixed with Avant
Rate 3.25%
Monthly Repayment: 1780
Switch will cost Solicitor (1500) and Valuation (200) approx.
 
aam514 said:
Option 1 - might only be available to new business but I can ask?
4 year fixed with PTSB
Rate 2.7%
Monthly Repayment: 1717
Click to expand...
This rate is only available to new PTSB mortgage customers.

aam514 said:
Option 2
3 year fixed with PTSB
Rate 3.15%
Monthly Repayment: 1768
Click to expand...
Maybe but remember that you can have the security of 5 years on a PTSB fixed rate for 3.25% (which is about €240 extra in interest per year versus the 3.15% rate).

In any case, ask PTSB if you can top up by ~€10k and if doing so will make you eligible for their much lower "high value" rates.

aam514 said:
Option 3
3 year fixed with Avant
Rate 3.25%
Monthly Repayment: 1780
Switch will cost Solicitor (1500) and Valuation (200) approx.
Click to expand...
I don't see why you would do this when you can have PTSB's 5-year 3.25% rate quickly and without having to pay solicitors' fees – unless you think you will be unable to switch away from PTSB in 5 years' time.
 
Thanks Paul,

I believe the break fee is zero as I received the following in a redemption letter:

I received the following:

Redemption amount due as at 3rd Jan 2023:
Outstanding balance 208,641.78
Arrears, arrears interest 1.60C
Cash write off 0.00
Matured Balance/Fees and Charges 0.00
Interest to redemption 167.20
Mortgage deed sealing fee 0.00
Early repayment charge 0.00
Legal fees/other costs 0.00
Total amount required 208,807.38

I will inquire with PTSB BOI and Avant then, thanks so much
 
Jollyman said:
Thanks folks so stick as i am really is the best option. Ill keep you updated with the offers that come back.
Click to expand...
See offer below just in

We are writing to you in response to your request to end your current fixed rate before the end of the
fixed rate interest period.
A) Please Note: If you end your current fixed rate before the end of the period for which the rate was
fixed in order to change to one of the rate options mentioned below, it is liKely you will have to pay us
compensation. The formula used for calculating such compensation is described in Section D on the
attached Mortgage Form of Authorisation ('MFA"), under the heading Early Repayment or Ending a
Fixed Rate Early". We ask that you please consider this carefully and would recommend that you
discuss with your Financial Adviser and/or Solicitor, before proceeding. We highly recommend that
you obtain a quotation from us of the likely amount of compensation that you may have to pay .
if you have not already received an estimate of the compensation figure payable to us. please contact
your branch for this figure. This is a point in time figure only, based on your mortgage account as it is
on the day you receive the figure, the actual figure could be significantly different to that estimated
B) Having considered the above, should you wish to proceed, we are able to offer you the following
range of options

Rate
VARIABLE LTV <=60% 3.900% €1,812.05
1 Year Fixed LTV <=60% 2.900% €1,638.94
2 Year fixed LTV<=eG% 2.900% 1 638.94
3 Year Fixed LTV <=60% 3.000% 1.65501
5 Year Fixed LTV <=60% 3.000% 1.655.01
10 Year Fixed LTV <=60% 3.300% 1,707.03

PLEASE NOTE: These estimates are calculated by applying the selected rate option, to your
mortgage account AS IT IS TODAY. Therefore: a) any other change to your mortgage account
that may occur between now and the date the selected rate is applied to your account, is not
included in the calculation and b) any other charge to your mortgage account (e. g. changing
from payments of interest only to payments of interest and capital) that Is due to occur, is not
 
Jollyman said:
See offer below just in
Click to expand...
Those rates are as expected.

Fixing for 10 years is probably not a good idea if you think there is a chance that you will move home in the next few years (or if you hope to make large overpayments). That is because a long fixed period can result in a high break fee.
 
@airgead07 Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so 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 fixed rate (3.25% with €4,298 cashback) will save you about €2,140 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
    • 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 Bank of Ireland's 10-year fixed rate (3.55% with €4,298 cashback) will leave you worse off by about €260 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 Permanent TSB's 5-year fixed rate (3.25% with no cashback) will leave you worse off by about €700 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

  • Switching immediately to AIB's 5-year fixed rate (3.35% with €2,000 cashback) will leave you worse off by about €940 over the next 4 years

  • Switching immediately to Haven's 7-year fixed rate (3.65% with €2,000 cashback) will leave you worse off by about €3,360 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 no cashback) will leave you worse off by about €3,900 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).

  • Switching immediately to Haven's 10-year fixed rate (3.85% with €2,000 cashback) will leave you worse off by about €4,960 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 7-year fixed rate (3.95% with no cashback) will leave you worse off by about €7,800 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to Avant Money's "One Mortgage" (a 4.3% fixed rate with no cashback) will leave you worse off by about €10,620 over the next 4 years – and the interest rate will be fixed for the remainder of your mortgage term (approximately 17 years)
    • The monthly repayment would be €1,513

These savings estimates use for comparison the scenario of switching to a 3.25% rate with Permanent TSB when the current fixed rate ends. And that's assuming that Permanent TSB are even offering a 3.25% rate in July 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:
  • 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. Ask Permanent TSB if they will guarantee today's rates for you if you start the process of re-fixing with them.
 
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