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

[DylanWilko111]

Note that all of the mainstream lenders gave 30 days' grace (and PTSB gave 90 days) when they increased their rates over recent months. That is to say, anybody who received a letter of offer from the lender before they increased their rates was allowed 30 more days to draw down at the old rate. But there is no guarantee that the credit union will do the same.

Did the credit union talk about needing to have your mortgage protection policy re-assigned from PTSB to them? I believe that it is the credit union's responsibility to contact the insurance company to instruct them to re-assign the life policy.

Did they mention needing to have their interest noted on your home insurance?


Try to pin them down on this if you can.

Hi Paul
They didn’t bring up the subject of my Mortgage Protection or Insurance.
They were keen to send the letter of offer to their solicitors to get the ball rolling tomorrrow.
But our call this evening, when they mentioned the adverse impact of an potential increase in rates before my drawdown, I asked them to give me some comfort / timescale. (They are aware of the 3.5% option available to me from tsb and the reason for this switch is to avail of the 3.2% offered by them)
They said they would discuss with credit director and revert to me in the morning. Hoping for some guarantees, fingers crossed.
Your feedback is invaluable. I’ll keep you updated!
Dylan

 

[DylanWilko111]

Ps - I get the impression (from various hints dropped by the credit officers during my calls) that their days of offering any kind of a fixed rate in this particular credit union are coming to an end. (Sounds like that’ll abandon fixed rates and stick to a variable rate only system…very soon)

 

[DylanWilko111]

Note that all of the mainstream lenders gave 30 days' grace (and PTSB gave 90 days) when they increased their rates over recent months. That is to say, anybody who received a letter of offer from the lender before they increased their rates was allowed 30 more days to draw down at the old rate. But there is no guarantee that the credit union will do the same.

Did the credit union talk about needing to have your mortgage protection policy re-assigned from PTSB to them? I believe that it is the credit union's responsibility to contact the insurance company to instruct them to re-assign the life policy.

Did they mention needing to have their interest noted on your home insurance?


Try to pin them down on this if you can.

Update; The Credit Union will issue the Letter of Offer to their solicitor tomorrow and they’ve agreed to give me 90 days to get the drawdown completed under its terms (3.2%). So the race is on!
I’m proceeding with the switch.
Hopefully, PTSB won’t drag their feet finding and releasing the deeds to my solicitor.
Cheers
Dylan

 

[Jack Reilly]

Hi Paul,

Selling house and have new loan offer from AIB on a new property. Requested breakage fee in Aug 22 and AIB confirmed it was zero. With increases in fixed rates since then does this affect the breakage fee ? Have chased AIB for this but have not had reply yet and came across this thread.

• Current lender AIB
• If your current lender is Permanent TSB, was your mortgage transferred to them from Ulster Bank?
• Outstanding mortgage balance (how much you still owe) €130K
• Approximate current value of your property €390K
• The date you started your fixed-rate mortgage (month and year) May 2022
• How many years you fixed for 3
• Your current mortgage interest rate 2.35%
• Your current monthly repayment (excluding any overpayments) €1,148
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary B3
• 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
• Did you use a broker when you took out your current mortgage? Yes

Thanks
J

 

[Paul F]

Selling house and have new loan offer from AIB on a new property. Requested breakage fee in Aug 22 and AIB confirmed it was zero. With increases in fixed rates since then does this affect the breakage fee ? Have chased AIB for this but have not had reply yet and came across this thread.

Your break fee is almost certainly still zero.

Did you use a broker when you took out your current mortgage? Yes

Can you explain what you mean here? AIB never operate through brokers, as far as I know.

 

[Jack Reilly]

Your break fee is almost certainly still zero.


Can you explain what you mean here? AIB never operate through brokers, as far as I know.

Hi Paul,

Thanks for the reply.

I used IMB back in 2008 for this as far as I remember. They were based on Pearse Street in Dublin 2 at the time.

Cheers
J

 

[Paul F]

I used IMB back in 2008 for this as far as I remember. They were based on Pearse Street in Dublin 2 at the time.

Ah, I understand, thanks. AIB don't deal with brokers now but I guess they did in the past.

Have a look at this thread to see if your AIB loan offer is competitive with other lenders' rates. But if you need to close the sale/purchase quite soon, then getting another loan offer would probably take too long.

Best Buy - Which lenders have the lowest mortgage rates? (Updated April 2023)

While I wrote the original post on this, Paul F has edited it and made it far easier to read and has kept it updated. Brendan You (or your broker) should apply to two or three of the cheapest lenders simultaneously. It might take some time for your loan offer to materialise, and today's Best...

www.askaboutmoney.com

 

[Clueless lady]

Hello, I am new here, a friend suggested I drop a line here.

Hopefully someone has advise please as I am clueless with all of this.
So appreciate any guidance.

1.Current lender is AIB
2. I have €169,642.39 left on my mortgage
3. I only fixed at 3 years, I was a first time buyer
4.BER is C3
5.House was purchased for €200,000 and I got the revalue today and it is €345,000
6. No cashback due from current lender
7.I did not use a broker when I took it out.
8. I am coming off a 2.55% rate and was paying €751.94 a month
9. I am the only one paying the mortgage.
10. 25 years left on mortgage.

Thanks to anyone in advance.

***unsure if anyone is still reading this thread ****

 

[Kant]

Hello. Looking to switch from Finance Ireland. as Rates have gone to 5.75.
Considering the Ptsb 3 or 5 year fixed rate options. They are presently lowest (increases expected in coming weeks) . they offer 2% cashback. They offer a 2% discount if you use their current explorer account.
Any thoughts appreciated.

• Current lender - Finance Ireland
• If your current lender is Permanent TSB, was your mortgage transferred to them from Ulster Bank? NO
• Outstanding mortgage balance (how much you still owe) 218,000
• Approximate current value of your property 530,000
• The date you started your fixed-rate mortgage (month and year) Jan 2017
• How many years you fixed for 3
• Your current mortgage interest rate 5.75%
• Your current monthly repayment (excluding any overpayments) 1500
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary Don't know - probably C something
• 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
• Did you use a broker when you took out your current mortgage? Yes

 

[lola1979]

Hi there,

I'm looking for advice please, should we switch our mortgage or not, 3% fixed rate is ending in November, if we switch should we go fixed or variable? cash back would be great at the mo!

• Current lender - EBS
• If your current lender is Permanent TSB, was your mortgage transferred to them from Ulster Bank? NO
• Outstanding mortgage balance (how much you still owe) 102,000 matures in April 2035
• Approximate current value of your property 420,000
• The date you started your fixed-rate mortgage (month and year) Nov 2018
• How many years you fixed for 5
• Your current mortgage interest rate 3%
• Your current monthly repayment (excluding any overpayments) 837
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary Don't know - probably B or C something
• 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
• Did you use a broker when you took out your current mortgage? No

Thanks,
L

 

[Paul F]

1.Current lender is AIB
2. I have €169,642.39 left on my mortgage
3. I only fixed at 3 years, I was a first time buyer
4.BER is C3
5.House was purchased for €200,000 and I got the revalue today and it is €345,000
6. No cashback due from current lender
7.I did not use a broker when I took it out.
8. I am coming off a 2.55% rate and was paying €751.94 a month
9. I am the only one paying the mortgage.
10. 25 years left on mortgage.

@Clueless lady Your break fee should be zero at the moment – but confirm it with AIB. 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 fixed rate (3.6% with €3,392 initial cashback and 2% monthly cashback) will save you about €5,680 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 continues, 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 Permanent TSB's 7-year fixed rate (3.8% with €3,392 initial cashback and 2% monthly cashback) will save you about €4,380 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 4-year fixed rate (3.4% with no cashback) will save you about €3,060 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (4.0% with €3,392 cashback) will save you about €2,520 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 Avant Money's 5-year fixed rate (3.65% with no cashback) will save you about €1,400 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 10-year fixed rate (4.3% with €3,392 cashback) will save you about €520 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 (4.05% with no cashback) will save you about €320 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 AIB's 5-year fixed rate (4.1% with no cashback) will not cost you or save you anything 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 Avant Money's 7-year fixed rate (3.95% with no cashback) will leave you worse off by about €580 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to AIB's 7-year fixed rate (4.25% with no cashback) will leave you worse off by about €1,000 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 AIB's 10-year fixed rate (4.4% with no cashback) will leave you worse off by about €2,000 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 Avant Money's "One Mortgage" (a 4.3% fixed rate with no cashback) will leave you worse off by about €2,900 over the next 4 years – and the interest rate will be fixed for the remainder of your mortgage term (approximately 26 years)

These savings estimates use for comparison the scenario of switching to a 4.1% rate with AIB when the current fixed rate ends. (Based on what you wrote, I'm assuming that your fixed rate will end very soon.) 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 and Haven: 2nd February 2023 (fixed rates), 25th November 2022 and 14th October 2022
• Bank of Ireland: 24th January 2023 and 10th November 2022
• Permanent TSB: 13th January 2023 and 18th November 2022
• Avant: 8th December 2022, 15th August 2022 and 16th May 2022
• EBS: 25th November 2022 and 14th October 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 AIB if they will guarantee today's rates for you if you start the process of re-fixing with them.

If you use a broker and they tell you that your mortgage balance is too low to switch, find another broker.

 

[Paul F]

• Current lender - Finance Ireland
• If your current lender is Permanent TSB, was your mortgage transferred to them from Ulster Bank? NO
• Outstanding mortgage balance (how much you still owe) 218,000
• Approximate current value of your property 530,000
• The date you started your fixed-rate mortgage (month and year) Jan 2017
• How many years you fixed for 3
• Your current mortgage interest rate 5.75%
• Your current monthly repayment (excluding any overpayments) 1500
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary Don't know - probably C something
• 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
• Did you use a broker when you took out your current mortgage? Yes

@Kant Because you are on a variable-rate mortgage, you do not have to pay a break fee.

• Switching immediately to Permanent TSB's 5-year fixed rate (3.6% with €4,360 initial cashback and 2% monthly cashback) will save you about €21,980 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 continues, 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 Permanent TSB's 7-year fixed rate (3.8% with €4,360 initial cashback and 2% monthly cashback) will save you about €20,320 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 4-year fixed rate (3.4% with no cashback) will save you about €18,340 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (4.0% with €4,360 cashback) will save you about €17,720 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 Avant Money's 5-year fixed rate (3.65% with no cashback) will save you about €16,260 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 10-year fixed rate (4.3% with €4,360 cashback) will save you about €15,200 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 (4.05% with €2,000 cashback) will save you about €14,940 over the next 4 years
  
  
• Switching immediately to AIB's 5-year fixed rate (4.1% with €2,000 cashback) will save you about €14,520 over the next 4 years
  
  
• Switching immediately to Avant Money's 7-year fixed rate (3.95% with no cashback) will save you about €13,740 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to AIB's 7-year fixed rate (4.25% with €2,000 cashback) will save you about €13,260 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to AIB's 10-year fixed rate (4.4% with €2,000 cashback) will save you about €12,000 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 4.3% fixed rate with no cashback) will save you about €10,800 over the next 4 years – and the interest rate will be fixed for the remainder of your mortgage term (approximately 21 years)
  
  
• Switching immediately to Finance Ireland's 5-year fixed rate (5.5% with no cashback) will save you about €1,940 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

These savings estimates use for comparison the scenario of staying on the variable rate with Finance Ireland and assume that that rate doesn't change between now and March 2027 (which is very unlikely). 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 and Haven: 2nd February 2023 (fixed rates), 25th November 2022 and 14th October 2022
• Bank of Ireland: 24th January 2023 and 10th November 2022
• Permanent TSB: 13th January 2023 and 18th November 2022
• Avant: 8th December 2022, 15th August 2022 and 16th May 2022
• Finance Ireland: 3rd October 2022 and 14th June 2022

 

[Clueless lady]

@Clueless lady Your break fee should be zero at the moment – but confirm it with AIB. 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 fixed rate (3.6% with €3,392 initial cashback and 2% monthly cashback) will save you about €5,680 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 continues, 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 Permanent TSB's 7-year fixed rate (3.8% with €3,392 initial cashback and 2% monthly cashback) will save you about €4,380 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 4-year fixed rate (3.4% with no cashback) will save you about €3,060 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (4.0% with €3,392 cashback) will save you about €2,520 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 Avant Money's 5-year fixed rate (3.65% with no cashback) will save you about €1,400 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 10-year fixed rate (4.3% with €3,392 cashback) will save you about €520 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 (4.05% with no cashback) will save you about €320 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 AIB's 5-year fixed rate (4.1% with no cashback) will not cost you or save you anything 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 Avant Money's 7-year fixed rate (3.95% with no cashback) will leave you worse off by about €580 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to AIB's 7-year fixed rate (4.25% with no cashback) will leave you worse off by about €1,000 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 AIB's 10-year fixed rate (4.4% with no cashback) will leave you worse off by about €2,000 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 Avant Money's "One Mortgage" (a 4.3% fixed rate with no cashback) will leave you worse off by about €2,900 over the next 4 years – and the interest rate will be fixed for the remainder of your mortgage term (approximately 26 years)

These savings estimates use for comparison the scenario of switching to a 4.1% rate with AIB when the current fixed rate ends. (Based on what you wrote, I'm assuming that your fixed rate will end very soon.) 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 and Haven: 2nd February 2023 (fixed rates), 25th November 2022 and 14th October 2022
• Bank of Ireland: 24th January 2023 and 10th November 2022
• Permanent TSB: 13th January 2023 and 18th November 2022
• Avant: 8th December 2022, 15th August 2022 and 16th May 2022
• EBS: 25th November 2022 and 14th October 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 AIB if they will guarantee today's rates for you if you start the process of re-fixing with them.

If you use a broker and they tell you that your mortgage balance is too low to switch, find another broker.

Fantastic thanks so much for your help.
Silly question, but are there restrictions from switching back and forth to lenders, I didn't realise that.

 

[Paul F]

Silly question, but are there restrictions from switching back and forth to lenders, I didn't realise that.

Yes, usually you need to have been with your current lender for at least 12 months before a new lender will take you. See this thread for more info:

How long must you be with an existing lender before switching?

Update May 2022 - Brendan These are guidelines. It seems that some people got different answers. Avant : 12 months Finance Ireland - no minimum time ICS: 6 months PTSB require you to be 12 months with previous lender (previously it was 2 years) BofI require you to be 12 months with previous...

www.askaboutmoney.com

In any case, switching very frequently would probably wipe out any savings that you would otherwise have made because switching costs about €1,500 in fees.

 

[Clueless lady]

Yes, usually you need to have been with your current lender for at least 12 months before a new lender will take you. See this thread for more info:

How long must you be with an existing lender before switching?

Update May 2022 - Brendan These are guidelines. It seems that some people got different answers. Avant : 12 months Finance Ireland - no minimum time ICS: 6 months PTSB require you to be 12 months with previous lender (previously it was 2 years) BofI require you to be 12 months with previous...

www.askaboutmoney.com

In any case, switching very frequently would probably wipe out any savings that you would otherwise have made because switching costs about €1,500 in fees.

Ah I see. Thanks so much for you letting time and effort. This is a great help.

 

[Paul F]

• Current lender - EBS
• If your current lender is Permanent TSB, was your mortgage transferred to them from Ulster Bank? NO
• Outstanding mortgage balance (how much you still owe) 102,000 matures in April 2035
• Approximate current value of your property 420,000
• The date you started your fixed-rate mortgage (month and year) Nov 2018
• How many years you fixed for 5
• Your current mortgage interest rate 3%
• Your current monthly repayment (excluding any overpayments) 837
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary Don't know - probably B or C something
• 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
• Did you use a broker when you took out your current mortgage? No

@lola1979 Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with EBS. 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 (3.4% with €2,040 initial cashback and 2% monthly cashback) will save you about €1,840 over the next 4 years
  • You are only eligible for this rate if you have a Building Energy Rating (BER) of B3 or better
  • Note that Permanent TSB's interest rates have usually been much higher than other lenders over the past several years. If this pattern continues, 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 EBS's 4-year green fixed rate (3.1% with no cashback) will save you about €1,780 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • You are only eligible for this rate if you have a Building Energy Rating (BER) of B3 or better
  
  
• Switching immediately to Permanent TSB's 5-year fixed rate (3.6% with €2,040 initial cashback and 2% monthly cashback) will save you about €1,120 over the next 4 years
  • The same warnings as above regarding higher Permanent TSB rates in the future apply
  
  
• Switching immediately to Permanent TSB's 7-year fixed rate (3.8% with €2,040 initial cashback and 2% monthly cashback) will save you about €400 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 5-year green fixed rate (3.65% with €2,000 cashback) will save you about €360 over the next 4 years
  • You are only eligible for this rate if you have a Building Energy Rating (BER) of B3 or better
  • 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 Bank of Ireland's 5-year green fixed rate (3.7% with €2,040 cashback) will save you about €220 over the next 4 years
  • You are only eligible for this rate if you have a Building Energy Rating (BER) of B3 or better
  • 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 EBS's 5-year fixed rate (3.75% with no cashback) will leave you worse off by about €560 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 Avant Money's 4-year fixed rate (3.4% with no cashback) will leave you worse off by about €780 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (4.0% with €2,040 cashback) will leave you worse off by about €880 over the next 4 years
  • The same warnings as above regarding higher Bank of Ireland rates in the future apply
  
  
• Switching immediately to Bank of Ireland's 10-year green fixed rate (4.0% with €2,040 cashback) will leave you worse off by about €880 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • You are only eligible for this rate if you have a Building Energy Rating (BER) of B3 or better
  • The same warnings as above regarding higher Bank of Ireland rates in the future apply
  
  
• Switching immediately to AIB's 4-year fixed rate (4.05% with €2,000 cashback) will leave you worse off by about €1,100 over the next 4 years
  
  
• Switching immediately to AIB's 5-year fixed rate (4.1% with €2,000 cashback) will leave you worse off by about €1,280 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 €1,680 over the next 4 years
  
  
• Switching immediately to AIB's 7-year fixed rate (4.25% with €2,000 cashback) will leave you worse off by about €1,820 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Bank of Ireland's 10-year fixed rate (4.3% with €2,040 cashback) will leave you worse off by about €1,980 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 10-year fixed rate (4.4% with €2,000 cashback) will leave you worse off by about €2,380 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's 7-year fixed rate (3.95% with no cashback) will leave you worse off by about €2,760 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 €4,040 over the next 4 years – and the interest rate will be fixed for the remainder of your mortgage term (approximately 12 years)

These savings estimates use for comparison the scenario of switching to a 3.75% rate with EBS when the current fixed rate ends. And that's assuming that EBS are even offering a 3.75% rate in November 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 and Haven: 2nd February 2023 (fixed rates), 25th November 2022 and 14th October 2022
• Bank of Ireland: 24th January 2023 and 10th November 2022
• Permanent TSB: 13th January 2023 and 18th November 2022
• Avant: 8th December 2022, 15th August 2022 and 16th May 2022
• EBS: 25th November 2022 and 14th October 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 EBS if they will guarantee today's rates for you if you start the process of re-fixing with them.
You will not be able to switch to Avant if your mortgage is less than €100k.

If you use a broker to switch to another lender and they tell you that your mortgage balance is too low to switch, find another broker.

BER (Building Energy Rating) certs and assessments

• To switch to one of the "green" mortgages listed above, you must have a BER cert for your property with a rating of B3 or higher
• The BER cert must be less than 10 years old
  • Some lenders may let you use your old BER cert if it is only slightly out of date
  • If you bought a newly constructed property, you may have a provisional BER cert, which is only valid for 2 years instead of the usual 10 years
• Check if your property already has a BER cert by entering your MPRN (shown on your electricity bill)
  • Also check with your current lender and solicitor to see if they hold your BER cert
• If you need a new BER cert (or if you have never had one), shop around for a low-cost BER assessor
  • Consider using https://www.bercert.com/ to get quotes
  • But also search using Google and Facebook, etc.
• There is no guarantee that you will get a B3 (or better) rating, so before arranging an assessment consider whether or not you are likely to get the rating you need
  • If you don't, you will arguably have wasted the money
  • If your neighbours' houses are very similar to yours, ask them if they know their BER. Or Google for old "For sale" listings if any of those houses sold in recent years and see what BER they claimed to have.
• EBS's green rate (3.1%) is currently competitive and switching to it would be very simple – provided you have a BER of B3 or better. That rate could increase very soon.

if we switch should we go fixed or variable?

Variable rates in Ireland have been higher than fixed rates for the last several years. Some variable rates are currently lower than fixed rates but there is no guarantee that that will continue.

If you value the certainty of a known interest rate, go for a fixed rate. But don't fix for a long period if there is a reasonable chance that you will move home in the next few years. E.g., if you think you might move home in the next 3 to 4 years, fix for 4 or 5 years (but not 10 years). Fixing for 10 years and moving home in the next few years could leave you with a large break fee.

 

[Clueless lady]

Ah I see. Thanks so much for you letting time and effort. This is a great help.

I actually just got off the phone with Permanent TSB and their rates are going up from today.

 

[Paul F]

I actually just got off the phone with Permanent TSB and their rates are going up from today.

@Kant @lola1979 Bear this in mind if you were thinking of switching to PTSB – their rates have gone up 0.75% compared to the rates I gave in my above posts.

ptsb increasing fixed rates by 0.75%

https://www.rte.ie/news/business/2023/0307/1360813-ptsb-to-increase-new-fixed-mortgage-rates-by-0-75/ PTSB said any customers who have received an offer letter that is based on the existing fixed rates it is currently offering will have until June 2nd to complete the drawdown of the loan at...

www.askaboutmoney.com

 

[aam514]

@Kant @lola1979 Bear this in mind if you were thinking of switching to PTSB – their rates have gone up 0.75% compared to the rates I gave in my above posts.

ptsb increasing fixed rates by 0.75%

https://www.rte.ie/news/business/2023/0307/1360813-ptsb-to-increase-new-fixed-mortgage-rates-by-0-75/ PTSB said any customers who have received an offer letter that is based on the existing fixed rates it is currently offering will have until June 2nd to complete the drawdown of the loan at...

www.askaboutmoney.com

FYI, I had trouble getting a confirmation letter from PTSB confirming break fee and rates offered. The letter never arrived despite numerous calls during which time the rates went up. In fairness to PTSB when the letter finally arrived they honored the original rates based on when I first called. So it's worth calling ASAP.

 

[Dr Jacoby]

Hi, my current fixed rate mortgage is with Bank of Ireland and will be up for renewal in August 2023. I'm considering fixed rate loans of at least 3 years, more likely 5 years. Advice appreciated.

• Current lender Bank of Ireland
• 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) €160K
• Approximate current value of your property €500K
• The date you started your fixed-rate mortgage (month and year) August 2021
• How many years you fixed for 2
• Your current mortgage interest rate 2.9%
• Your current monthly repayment (excluding any overpayments) €835
• 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
• Did you use a broker when you took out your current mortgage? Yes