@orwell Because you are on a variable-rate mortgage, you do not have to pay a break fee.
- Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €19,200 over the next 4 years
- But you will need a BER of B3 or better to be eligible for this rate, and the savings estimate does not account for the cost of a BER assessment (possibly €150 to €250)
- Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €18,520 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)
- But you will need a BER of B3 or better to be eligible for this rate, and the savings estimate does not account for the cost of a BER assessment (possibly €150 to €250)
- Switching immediately to AIB's 5-year fixed rate (2.35% with €2,000 cashback) will save you about €16,820 over the next 4 years
- Switching immediately to Haven's 7-year fixed rate (2.65% with €2,000 cashback) will save you about €14,760 over the next 4 years – but with the longer security of 7 years on a fixed rate
- Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €14,100 over the next 4 years
- Switching immediately to Haven's 10-year fixed rate (2.85% with €2,000 cashback) will save you about €13,380 over the next 4 years – but with the longer security of 10 years on a fixed rate
- Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will save you about €12,720 over the next 4 years
- Switching immediately to AIB's 7-year fixed rate (2.95% with €2,000 cashback) will save you about €12,700 over the next 4 years – but with the longer security of 7 years on a fixed rate
- Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will save you about €11,000 over the next 4 years – but with the longer security of 10 or 15 years on a fixed rate
- This product has a benefit in relation to moving home in the future that is explained below
- Switching immediately to Avant Money's 7-year fixed rate (2.95% with no cashback) will save you about €10,660 over the next 4 years – but with the longer security of 7 years on a fixed rate
- Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will save you about €7,540 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 3.4% fixed rate with no cashback) will save you about €7,540 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 15 years)
The above Avant rates include their rate increases of 15 August 2022. While Avant's rates are not the lowest at present, it is possible that they will be amongst the lowest in the near future when other lenders increase their rates.
These savings estimates use for comparison the scenario of staying on the variable rate with your current lender and assume that that rate doesn't change between now and August 2026 (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, and Finance Ireland's 10-year and longer fixed 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). And in the case of Finance Ireland you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (provided that at least 3 years have passed since you started the Finance Ireland fixed rate and subject to certain other conditions).
The estimates also assume that your loan-to-value ratio (LTV) really is below 50% in order to be eligible for the AIB rates listed above. (You are already eligible, from an LTV perspective, for all of the other listed rates.) Your LTV estimate is 190.0k/400.0k = 47.5%. If you get a valuation of less than €380k, you will need to make a few more monthly mortgage payments and/or a lump sum overpayment to get the LTV below 50%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.
Bear in mind that interest rates could 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).
If you use a broker and they tell you that your mortgage balance is too low to switch, find another broker.
It will probably be impossible to switch if your mortgage is in arrears or if you have a bad credit record. Please also review
this list of other reasons that may prevent you from switching and see if any of them apply to you.