I am creating this thread as a place where people can request guidance on whether they should switch their mortgage to another lender (also called mortgage refinancing or remortgaging) and, if so, which lenders and interest rates they might consider switching to.
You are allowed to switch even if you are in the middle of a fixed rate with your current lender. The savings can be very significant, even if you have to pay fees. (The typical cost for switching mortgage provider is €1,500, but the savings you make will quickly cover this in many cases.)
The guidance you receive will include an estimated calculation of the breakage fee ("early repayment charge" / "breakage cost") if you are currently on a fixed-rate mortgage, and the savings you would make by switching. (There are no breakage fees on variable-rate mortgages.) I am not aware of an online mortgage break fee calculator for Ireland, but this is arguably the next best thing.
To request guidance, please provide the following information:
- Current lender
- If your current lender is Permanent TSB, was your mortgage transferred to them from Ulster Bank?
- Outstanding mortgage balance (how much you still owe)
- Approximate current value of your property
- The date you started your fixed-rate mortgage (month and year)
- How many years you fixed for
- Your current mortgage interest rate
- Your current monthly repayment (excluding any overpayments)
- Your property's BER (Building Energy Rating) – check it here or estimate it if necessary
- 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?
- Did you use a broker when you took out your current mortgage?
If you are looking for information on something that is not directly related to break fees or which lender to switch to, first check the below links to see if your query has been answered before. Consider asking your question in one of those threads before asking it here.
Most mortgage lenders in Ireland – AIB, Avant Money, Bank of Ireland, EBS, Finance Ireland, Haven Mortgages, ICS Mortgages, Permanent TSB – allow you to switch your mortgage to them.
Ulster Bank still allow their current mortgage customers to switch to a different interest rate ("re-fix").
Interest rates could rise between now and the time that you complete any switch, so you (or your broker) should apply simultaneously to two or more lenders for approval in principle (AIP), or consider re-fixing with your current lender (which is a much simpler and quicker process).
If you have
a tracker mortgage and you are trying to decide whether or not to fix your mortgage (or switch lender), see
the tracker thread. (You can come back here and post your mortgage details if you decide to fix/switch.)
If you have a
buy-to-let (BTL) mortgage, or you are renting out your property, start a new thread with your questions.
Nothing in this thread should be considered financial advice.
