Key Post It may be much cheaper than you think to break out of a fixed rate early...

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Paul F said:
Unfortunately they stopped providing those graphs. You can look up the rate for any date here but they don't have graphs.

Your break fee should be around €1,900.
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Thanks for responding @Paul F. Much appreciated. I was expecting a much higher fee than €1,900. I contacted KBC this morning to request the break-out cost. They said it will take 5 working days

The original mortgage from KBC in March 2018 was 300k 10 year fixed at 2.95% and 87k variable. The total mortgage amount was 387k.

There is 238k remaining on the fixed rate mortgage portion and 26k on on the variable portion.

  • Who is your lender? KBC
  • What is your monthly repayment? €2,500 (paying extra off variable portion. I already paid max amount fee free on the fixed portion)
  • What rate are you on currently? 2.95% on fixed portion and 3% on variable
  • What is your LTV? 30%
  • What is your BER? A3
 
OkeyDokey said:
Thanks for responding @Paul F. Much appreciated. I was expecting a much higher fee than €1,900. I contacted KBC this morning to request the break-out cost. They said it will take 5 working days
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Apologies, I made a mistake! The break fee will be more like €8,000 to €11,000 o_O

Note that the 6-year swap rate is rising rapidly at the moment (here is a graph), so it is hard for me to give you an accurate estimate. As it rises, your break fee falls.

If you switched to Avant's 1.95% rate, you would save about €2,600 per year in interest. So it would take a few years for the savings to offset the break fee.

Keep an eye on that 6-year rate and don't be afraid to regularly request an updated break fee from KBC.

But remember that if the rates keep going up, the banks might put their mortgage rates up.

If you use a broker who is an Avant "Gold Partner" and switch to them before the end of March, you will get €1,500 cashback.
 
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Many thanks again @Paul F. That's great information and advice.

I have until the end of March to avail of Avant's €1,500 cashback. I'll contact a Gold Partner to find out the information required for a loan application. I can make a final decision when I'm ready to submit an application to Avant.
 
I have 275k outstanding on my mortgage, my fixed contract is up at the end of September this year. Current rate is 2.6. On Jan 14th Ulster bank quoted me 1249 to break, does that seem a bit high given other peoples experiences ?
 
galway2014 said:
I have 275k outstanding on my mortgage, my fixed contract is up at the end of September this year. Current rate is 2.6. On Jan 14th Ulster bank quoted me 1249 to break, does that seem a bit high given other peoples experiences ?
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  • When did you fix (month and year)?
  • What is your monthly repayment?
  • What is your property worth?
  • What is your BER?
 
@galway2014 The break fee they quoted in January seems correct. But now it could be down to around €900 (because interbank interest rates have increased quite sharply in the last week or so).

If you switched to Avant's 1.95% rate (fixed for 3, 4, 5 or 7 years), you would save about €1,750 per year in interest.

If you use a broker who is an Avant "Gold Partner" and switch to them before the end of March, you will get €1,500 cashback.
 
Hi,
Also considering switching and would be grateful of advice.

-Currently on a 3% fixed with BOI taken out in April 2018 and expiring in April 2023.
- House value c. $450k and outstanding mortgage c. $300k
- BER is not great (C2)
-Due 1% cash back on c. $330k in April'23
-Monthly repayment $1,307 and currently overpaying by 10%
-Term was 35 years with c. 31 outstanding

Cheers
 
Paul F said:
Unfortunately they stopped providing those graphs. You can look up the rate for any date here but they don't have graphs.
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On that link to theice.com how do you view rates for dates other than today? I can't see any option to adjust the date settings.
 
neiljung said:
On that link to theice.com how do you view rates for dates other than today? I can't see any option to adjust the date settings.
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You're right, they no longer let you look at previous dates! :rolleyes: You can go here and search for "eur int rate swap". I think they are similar to the ICE rates.
 
Liamjames said:
Also considering switching and would be grateful of advice.

-Currently on a 3% fixed with BOI taken out in April 2018 and expiring in April 2023.
- House value c. $450k and outstanding mortgage c. $300k
- BER is not great (C2)
-Due 1% cash back on c. $330k in April'23
-Monthly repayment $1,307 and currently overpaying by 10%
-Term was 35 years with c. 31 outstanding
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With your LTV you're eligible for Avant's 2.05% rate. That will save you about €2,800 per year in interest.

If you have a spare €30k (sure, don't we all), you could ask Avant for a €270k mortgage, which would get your LTV below 60% (assuming your house value estimate is correct). Then you'd be eligible for Avant's 1.95% rate, which will save you about €3,100 per year in interest.

If you can't go with Avant for some reason (seems unlikely), AIB's 4-year fixed 2.2% rate is good. It comes with €2,000 cashback.

Note that with Avant you'll be able to overpay by 10% of the balance per year, i.e., you could overpay by €30k in the first year.

As for whether or not to hang on with BOI for an extra 14 months to get the €3,300 cashback, you can see that by switching now you'll save pretty much exactly that amount in interest with Avant over the next 14 months. So you'd be better off switching now and locking in the low 2.05% rate, which could easily increase before April 2023.
 
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Paul F said:
With your LTV you're eligible for Avant's 2.05% rate. That will save you about €2,800 per year in interest.

If you have a spare €30k (sure, don't we all), you could ask Avant for a €270k mortgage, which would get your LTV below 60% (assuming your house value estimate is correct). Then you'd be eligible for Avant's 1.95% rate, which will save you about €3,100 per year in interest.

If you can't go with Avant for some reason (seems unlikely), AIB's 4-year fixed 2.2% rate is good. It comes with €2,000 cashback.

Note that with Avant you'll be able to overpay by 10% of the balance per year, i.e., you could overpay by €30k in the first year.

As for whether or not to hang on with BOI for an extra 14 months to get the €3,300 cashback, you can see that by switching now you'll save pretty much exactly that amount in interest with Avant over the next 14 months. So you'd be better off switching now and locking in the low 2.05% rate, which could easily increase before April 2023.
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Thanks a lot. All makes sense.

I did contact BOI on Friday and got a quote of €2.8k to break which was a lot higher than I was expecting given I have a little over a year left. Just another variable in the mix I suppose to consider.
 
Liamjames said:
I did contact BOI on Friday and got a quote of €2.8k to break which was a lot higher than I was expecting given I have a little over a year left. Just another variable in the mix I suppose to consider.
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Will they be posting the break fee quote to you? If so, check if they included the exact calculation that they used – €2,800 is a few hundred quid higher than my estimate.

By the way, Haven's three fixed-rate of 2.35% would save you more money (about €2,500 more) than Avant because it comes with €5,000 cashback. But you would only have the security of that rate for the next three years, versus 7 years with Avant.
 
  • Who is your lender? Perm TSB
  • What is your monthly repayment? €1093
  • What rate are you on currently? 3.25%
  • What is your LTV? <60%
  • What is your BER? B3
Can anyone run the figures for me please?I'm going to ring Perm TSB tomorrow but it will probably take them 2 weeks or more to get back to me.
Mortgaged opened Sept 17th 2018, original term 312 months, 272 remaining. Original loan amount was €230,000, remaining is €210,510.
Took out a 5 year fixed rate at 3.25% which is not up until Oct 2023.
Like the look of Avants 1.95% or Havens 4 year Green rate with €2000 towards fees. But break fee may not make it feasible.....
 
toby2111 said:
Like the look of Avants 1.95% or Havens 4 year Green rate with €2000 towards fees. But break fee may not make it feasible.....
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Your break fee should only be around €350. But interbank interest rates are so volatile at the moment that it could move a lot (in either direction) in the space of a few days.

Haven's 2.0% green rate is a good choice. If you go with them, you'll be better off to the tune of €1,600 in four years' time (versus Avant). But Avant lets you fix for up to 7 years, so by going with them you'll have a longer period of the security of a 1.95% rate. Nobody knows where interest rates will be in four years.
 
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Paul F said:
Your break fee should only be around €350. But interbank interest rates are so volatile at the moment that it could move a lot (in either direction) in the space of a few days.

Haven's 2.0% green rate is a good choice. If you go with them, you'll be better off to the tune of €1,600 in four years' time (versus Avant). But Avant lets you fix for up to 7 years, so by going with them you'll have a longer period of the security of a 1.95% rate. Nobody knows where interest rates will be in four years.
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Thanks for that,€350 is great to hear,i thought it may be around €2000 or thereabouts!
Out of curiousity,what would I save per month by switching to Avant or Haven?
Does that €1600 you quoted above include the €2000 cashback ( is it cashback or just payment towards fee's?)
 
toby2111 said:
Thanks for that,€350 is great to hear,i thought it may be around €2000 or thereabouts!
Out of curiousity,what would I save per month by switching to Avant or Haven?
Does that €1600 you quoted above include the €2000 cashback ( is it cashback or just payment towards fee's?)
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To estimate what any new interest rate will save you, you multiply the interest rate reduction you're getting by your balance. In your case, assuming you go with Haven, you will save approximately €210,510*(3.25 - 2.0)/100 = €2,631 in interest per year.

Yes, the "better off to the tune of €1,600" includes the €2,000 cashback. It is cashback that Haven give you a couple of months after you complete the switch. You get the full €2,000 even if your fees are less than €2,000.
 
Paul F said:
To estimate what any new interest rate will save you, you multiply the interest rate reduction you're getting by your balance. In your case, assuming you go with Haven, you will save approximately €210,510*(3.25 - 2.0)/100 = €2,631 in interest per year.

Yes, the "better off to the tune of €1,600" includes the €2,000 cashback. It is cashback that Haven give you a couple of months after you complete the switch. You get the full €2,000 even if your fees are less than €2,000.
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So €2631/12=219.25....
So am I right in saying I'd be €219.25 better off a month by switching??? That's a huge saving for me.....
 
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