Worth breaking out of fixed rate-TSB

Healthinsurance

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Hi all,
After all the help given to me about my break fee, my sister has decided to see what her break fee would be.

She's with TSB, with just over 125k left on the mortgage. She fixed for 5 years in December 2018 for 5 years at 3.7%. She's looking to move to a 3.2% rate and has been quoted €635 to break.
She's not against moving bank either but has limited time, hence me trying to help.

I tried working out if it would be worth changing rate and paying the break fee but I can't really understand it. I get stuck after checking if the fee is correct, which I think it is.

Any help is appreciated. Thanks.
 
What's her LTV?
And what's the time pressure in switching (or is it just she doesn't have time to look into doing a bank switch?)
 
If she switched from 3.7% to 3.2% she'd save 625 interest per year. So break fee would be covered in 12 months.

Save an additional 1,200 per year by switching to the best rates available in the market. I guess she could make a few hours available to get bank statements together for those savings?

Plenty of info in the switchers forum on switching process with different banks.
 
She's with TSB, with just over 125k left on the mortgage. She fixed for 5 years in December 2018 for 5 years at 3.7%. She's looking to move to a 3.2% rate and has been quoted €635 to break.

Here is a quick and dirty calculation to give you a general idea.

She will save 0.5% a year on €125k or €600.

So she will recover the cost in the first year.

So it seems to be worth it.

I am assuming that she has the 3.2% rate for the remaining 4 years.

Update: Post crossed with Red's.
 
Thanks to ye both. Her LTV hasn't changed since she got the mortgage but it's something she'll look into now.
She has a very small baby which is stealing most of her time at the moment but this is a great help. Thanks.
 
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