Key Post Mortgage switching in Ireland – break fee calculations and savings estimates

Paul F

Registered User
Messages
732
@Shane1883 Please post your mortgage details in the format shown in the first post of this thread.

Edit: Are you a first-time buyer or are you looking to switch your current mortgage to another lender?
 
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zrb919

Registered User
Messages
4
Current lender: Planned drawdown with EBS next month
Outstanding mortgage balance: 350,000
Approximate value of your property: 450,000
The date you started your fixed-rate mortgage (month and year): ~June 2022
How many years you fixed for: Not finalised, thinking 3 or 5-year fix
Your current mortgage interest rate: Above would be at 2.75%
Your current monthly repayment (excluding any overpayments): Estimated to be 1,941 for the fixed period
Your property's BER (Building Energy Rating) – estimated if necessary: C3
Cashback: €7,000 at drawdown, €3,500 in June 2027

Thinking to go with 5-year fix as rising interest rates may present an opportunity to break for nil fee and possibly refix at a lower rate with a more competitive lender. Alternatively, it provides some certainty over the medium-term if a high interest environment persists.
 

Paul F

Registered User
Messages
732
@zrb919 Do you currently have a mortgage or are you a first-time buyer? If you currently have a mortgage, please post the details for your current mortgage (not your possible next mortgage).
 

Robert T

New Member
Messages
3
Worried about prospective rate hikes but also concerned with the breakage fee. Any help would be greatly appreciated. I spoke to BOI and they confirmed that the fee would be zero today but that it could be in the 000 s on another day


  • Current lender - Bank of Ireland
  • Outstanding mortgage balance (how much you still owe) - €257k
  • Approximate value of your property - €320k
  • The date you started your fixed-rate mortgage (month and year) - October 2021
  • How many years you fixed for - 2 years
  • Your current mortgage interest rate - 2.9%
  • Your current monthly repayment (excluding any overpayments) - €1006
  • 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 and when? Yes, after 5 years.
 

bungaro

Registered User
Messages
237
Fantastic thread Paul F.

Current lender - KBC
Outstanding mortgage balance (how much you still owe) - €240k
Approximate value of your property - €330k
The date you started your fixed-rate mortgage (month and year) - Apr 2019
How many years you fixed for - 5 years
Your current mortgage interest rate - 2.8%
Your current monthly repayment (excluding any overpayments) - €1100
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 and when? Nope

I got a call back from KBC today so I was delighted to hear that I can break out of my fixed rate at no charge! So its a case of seeing what is the best option out there for us. Thanks
 

smndly

Registered User
Messages
35
Great Thread. Extremely insightful.

Current lender: Ulster Bank
Outstanding mortgage balance: 262k
Approximate value of your property: 435k
The date you started your fixed-rate mortgage: September 2021
How many years you fixed for: 5
Your current mortgage interest rate: 2.2%
Your current monthly repayment: €907
Your property's BER: E
Are you due to get extra cashback from your current lender in the future: No

I got a breakout fee quote of €0 two months ago from UB
Considering fixing for a longer term mortgage given likely rate hikes.
We will be looking at upsizing in 4-6 years.

I'm aware many lenders have min one year with current lender stipulations which limits options here.
Thanks a million!
 

Paul F

Registered User
Messages
732
  • The date you started your fixed-rate mortgage (month and year) - October 2021
  • How many years you fixed for - 2 years
@Robert T When did you first take out a mortgage with Bank of Ireland? Was it in October 2021? Or was it earlier than that but you only fixed/switched rates in October 2021?
 

Paul F

Registered User
Messages
732
Current lender: UB
Outstanding mortgage balance: 151k
Approximate value of your property: 365k
The date you started your fixed-rate mortgage: November 2019
How many years you fixed for: 4
Your current mortgage interest rate: 2.6%
Your current monthly repayment: €1238
Your property's BER: A2
Are you due to get extra cashback from your current lender in the future: N/A
Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Ulster Bank (and please post it here when you receive it, including the date of the letter).

So the upfront costs are about €1,485 (solicitors' fees of about €1,300 and a valuation fee of €185). But the solicitors' fees are usually only due after the switch is completed, by which time you might have built up enough savings. Note that if you are going for for one the "green" mortgage products, you will need a valid BER cert, which will cost you about €150 to €250 if you don't already have one (check here). There are no upfront costs (apart from a BER cert if you need one) associated with re-fixing with Ulster Bank, but doing so means that you will become a Permanent TSB customer soon, and you will face their higher rates in the future.

Note: you may receive two separate letters from Ulster Bank a few days apart, and their structure and wording can lead to confusion. Look for the line that says: "To break out of this fixed rate early, you would have to pay a fee of €X". That amount is your break fee. Ignore all other references to break fees.
  • Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €2,680 over the next 4 years

  • Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €2,160 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)

  • Switching immediately to Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €900 over the next 4 years

  • Switching immediately to Ulster Bank's 4-year green fixed rate (2.25% with no cashback) will save you about €820 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • Note that if you decide to do this, your mortgage will soon move onto Permanent TSB's books, and they discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Permanent TSB customer, the best rate you would be able to switch to today is 2.95%
    • So if you switch to this Ulster Bank offer now, you will probably not be eligible to switch to one of Permanent TSB's 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 Ulster Bank's 5-year fixed rate (2.35% with no cashback) will save you about €300 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • The same warnings as above regarding higher Permanent TSB rates in the future apply

  • Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will leave you worse off by about €140 over the next 4 years

  • Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will leave you worse off by about €660 over the next 4 years – but with the even-longer security of 7 years on a fixed rate

  • Switching immediately to Avant Money's 10-year fixed rate (2.4% with no cashback) will leave you worse off by about €1,460 over the next 4 years – but with the even-longer security of 10 years on a fixed rate

  • Switching immediately to Finance Ireland's 10-year fixed rate (2.4% with no cashback) will leave you worse off by about €1,460 over the next 4 years – but with the even-longer security of 10 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 "One Mortgage" (a 2.4% fixed rate with no cashback) will leave you worse off by about €1,460 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 12 years)

  • Switching immediately to Ulster Bank's 7- or 10-year fixed rate (2.8% with no cashback) will leave you worse off by about €2,060 over the next 4 years – but with the even-longer security of 7 or 10 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • The same warnings as above regarding higher Permanent TSB rates in the future apply
    • The monthly repayment would be €1,252

These savings estimates use for comparison the scenario of switching to the 2.25% rate with Ulster Bank when the current fixed rate ends. And that's assuming that Ulster Bank (or Permanent TSB, if they have taken over your mortgage by then) are even offering a 2.25% rate in January 2024 – 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.

It may seem like it is not worth switching to another lender but bear in mind that your mortgage will soon be owned by Permanent TSB, whose rates are much higher than Ulster Bank's. So if you don't switch now, you might find that you really want to switch in a few years' time, at which point rates might be higher (and it might be impossible to switch if your financial situation has deteriorated).

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 (again, subject to certain conditions).

For the Haven and AIB products, I believe you get the cashback about 2 months after you complete the switch.
 
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Paul F

Registered User
Messages
732
Current lender - KBC
Outstanding mortgage balance (how much you still owe) - €240k
Approximate value of your property - €330k
The date you started your fixed-rate mortgage (month and year) - Apr 2019
How many years you fixed for - 5 years
Your current mortgage interest rate - 2.8%
Your current monthly repayment (excluding any overpayments) - €1100
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 and when? Nope
  • Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €5,580 over the next 4 years

  • Switching immediately to AIB's 5-year green fixed rate (2.15% with €2,000 cashback) will save you about €4,220 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)

  • Switching immediately to Avant Money's 4-year fixed rate (2.15% with no cashback) will save you about €2,180 over the next 4 years

  • Switching immediately to KBC's 5-year fixed rate (2.45% with no cashback) will save you about €760 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • Note that if you decide to do this, your mortgage will soon move onto Bank of Ireland's books, and they discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Bank of Ireland customer, the best rate you would be able to switch to today is 3%
    • So if you switch to this KBC offer now, you will probably not be eligible to switch to one of Bank of Ireland's 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 (2.35% with no cashback) will save you about €340 over the next 4 years

  • Switching immediately to Avant Money's 7-year fixed rate (2.45% with no cashback) will leave you worse off by about €580 over the next 4 years – but with the even-longer security of 7 years on a fixed rate

  • Switching immediately to Avant Money's 10-year fixed rate (2.6% with no cashback) will leave you worse off by about €1,960 over the next 4 years – but with the even-longer security of 10 years on a fixed rate

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.65% with no cashback) will leave you worse off by about €2,420 over the next 4 years – but with the even-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
    • And your interest rate (initially 2.65%) will automatically fall as time passes and you move into lower loan-to-value (LTV) brackets. See the section "How we decide rate reductions" on this page.

These savings estimates use for comparison the scenario of switching to the 2.30% rate with KBC when the current fixed rate ends. And that's assuming that KBC (or Bank of Ireland, if they have taken over your mortgage by then) are even offering a 2.30% rate in April 2024 – 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, 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 (again, subject to certain conditions).

The estimates also assume that your loan-to-value ratio (LTV) is currently 240.0k/330.0k = 72.7%. A slightly higher property valuation (€343k) and/or a few more monthly mortgage payments and/or a small overpayment would get you into a lower LTV bracket (< 70%), and you would be eligible for lower rates from Avant and Finance Ireland. But that is probably not a good reason to delay the switch – i.e., you can start the switch immediately.

If you want savings estimates for longer-term fixed rates, let me know.
 

bob1577

Registered User
Messages
7
Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Ulster Bank (and please post it here when you receive it, including the date of the letter).

So the upfront costs are about €1,485 (solicitors' fees of about €1,300 and a valuation fee of €185). But the solicitors' fees are usually only due after the switch is completed, by which time you might have built up enough savings. Note that if you are going for for one the "green" mortgage products, you will need a valid BER cert, which will cost you about €150 to €250 if you don't already have one (check here). There are no upfront costs (apart from a BER cert if you need one) associated with re-fixing with Ulster Bank, but doing so means that you will become a Permanent TSB customer soon, and you will face their higher rates in the future.

Note: you may receive two separate letters from Ulster Bank a few days apart, and their structure and wording can lead to confusion. Look for the line that says: "To break out of this fixed rate early, you would have to pay a fee of €X". That amount is your break fee. Ignore all other references to break fees.
  • Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €2,680 over the next 4 years

  • Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €2,160 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)

  • Switching immediately to Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €900 over the next 4 years

  • Switching immediately to Ulster Bank's 4-year green fixed rate (2.25% with no cashback) will save you about €820 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • Note that if you decide to do this, your mortgage will soon move onto Permanent TSB's books, and they discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Permanent TSB customer, the best rate you would be able to switch to today is 2.95%
    • So if you switch to this Ulster Bank offer now, you will probably not be eligible to switch to one of Permanent TSB's 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 Ulster Bank's 5-year fixed rate (2.35% with no cashback) will save you about €300 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • The same warnings as above regarding higher Permanent TSB rates in the future apply

  • Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will leave you worse off by about €140 over the next 4 years

  • Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will leave you worse off by about €660 over the next 4 years – but with the even-longer security of 7 years on a fixed rate

  • Switching immediately to Avant Money's 10-year fixed rate (2.4% with no cashback) will leave you worse off by about €1,460 over the next 4 years – but with the even-longer security of 10 years on a fixed rate

  • Switching immediately to Finance Ireland's 10-year fixed rate (2.4% with no cashback) will leave you worse off by about €1,460 over the next 4 years – but with the even-longer security of 10 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 "One Mortgage" (a 2.4% fixed rate with no cashback) will leave you worse off by about €1,460 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 12 years)

  • Switching immediately to Ulster Bank's 7- or 10-year fixed rate (2.8% with no cashback) will leave you worse off by about €2,060 over the next 4 years – but with the even-longer security of 7 or 10 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • The same warnings as above regarding higher Permanent TSB rates in the future apply
    • The monthly repayment would be €1,252

These savings estimates use for comparison the scenario of switching to the 2.25% rate with Ulster Bank when the current fixed rate ends. And that's assuming that Ulster Bank (or Permanent TSB, if they have taken over your mortgage by then) are even offering a 2.25% rate in January 2024 – 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.

It may seem like it is not worth switching to another lender but bear in mind that your mortgage will soon be owned by Permanent TSB, whose rates are much higher than Ulster Bank's. So if you don't switch now, you might find that you really want to switch in a few years' time, at which point rates might be higher (and it might be impossible to switch if your financial situation has deteriorated).

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 (again, subject to certain conditions).

For the Haven and AIB products, I believe you get the cashback about 2 months after you complete the switch.
thanks Paul really appreciate the feedback. i have asked for the breakage letter from UB, once i get it will post here.

Hi Paul and others on here, I got the letter today and here is what it says exactly word for word.

You are on a fixed rate of 2.6% until 31/12/2023. Based on todays info this would result in an early redemption charge of €0.00 to no longer be bound by this fixed rate. This amount is valid until 31/05/2022. if you are changing to a another interest rate, this new rate will not be applied to your mortgage account until the early redemption charge has been processed.
 
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brazen_dude

Registered User
Messages
114
To request guidance, please provide the following information:
Hi Paul,
  • Current lender - Ulster
  • Outstanding mortgage balance (how much you still owe) - 167877
  • Approximate value of your property - 450K
  • The date you started your fixed-rate mortgage (month and year) - Oct 2021
  • How many years you fixed for - 2 yrs (Ends on 31/12/2023)
  • Your current mortgage interest rate - 2.2%
  • Your current monthly repayment (excluding any overpayments) - 936.01, 18Yrs & 9 months remained.
  • Your property's BER (Building Energy Rating) – check it here or estimate it if necessary - A3
  • 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 and when? - None
Got two letters from Ulster bank after asking for a breakage fee. One letter says the breakage costs are 0 and other letter gave me different options to choose from (2 yrs fixed 2.2% ending on 30/06/2024; 4 yrs green mortgage @ 2.25% etc etc with some breakage costs for each option). I am just confused between two letters which says 0 and other letter with different breakage costs ranging from 2.5K to 3K... which one is correct out of those two letters if i want to break out of Ulster?
 

Paul F

Registered User
Messages
732
  • Current lender - Bank of Ireland
  • Outstanding mortgage balance (how much you still owe) - €257k
  • Approximate value of your property - €320k
  • The date you started your fixed-rate mortgage (month and year) - October 2021
  • How many years you fixed for - 2 years
  • Your current mortgage interest rate - 2.9%
  • Your current monthly repayment (excluding any overpayments) - €1006
  • 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 and when? Yes, after 5 years.
  • Switching immediately to Permanent TSB's 5-year green fixed rate (2.35% with €5,139 initial cashback and 2% monthly cashback) will save you about €10,460 over the next 4 years
    • Note that Permanent TSB discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Permanent TSB customer, the best rate you would be able to switch to today is 2.95%
    • 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 Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €10,220 over the next 4 years

  • Switching immediately to AIB's 5-year green fixed rate (2.15% with €2,000 cashback) will save you about €8,720 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)

  • Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €6,700 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to Avant Money's 7-year fixed rate (2.45% with no cashback) will save you about €3,640 over the next 4 years – but with the even-longer security of 7 years on a fixed rate
    • You would have to shorten your mortgage term to 30 years to be eligible for this rate
    • The monthly repayment would be €1,009

  • Switching immediately to Avant Money's 10-year fixed rate (2.6% with no cashback) will save you about €2,140 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
    • You would have to shorten your mortgage term to 30 years to be eligible for this rate
    • The monthly repayment would be €1,029

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.65% with no cashback) will save you about €1,660 over the next 4 years – but with the even-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
    • And your interest rate (initially 2.65%) will automatically fall as time passes and you move into lower loan-to-value (LTV) brackets. See the section "How we decide rate reductions" on this page.

  • Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% with no cashback) will leave you worse off by about €520 over the next 4 years. But 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 switching to the 3.0% rate with Bank of Ireland when the current fixed rate ends. And that's assuming that Bank of Ireland are even offering a 3.0% rate in October 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, 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 (again, subject to certain conditions).

The estimates also assume that you get your loan-to-value ratio (LTV) below 80% so that you are eligible for the listed rates. Your LTV is currently 257k/320k = 80.3%. A slightly higher property valuation (€322k) and/or a few more monthly mortgage payments and/or a small overpayment will get you below 80%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

If you're feeling brave, you could consider the strategy outlined in this thread: switch to Haven's 2.35% 3-year fixed rate and get the €5k cashback. Then quickly switch to Haven's 2.0% green rate. If it works, you will be better off by about €13,220 in four years' time. Nobody knows for sure if Haven will allow you to do this, so you might be stuck on the 2.35% rate, but at least you'd have got the €5k cashback.

Some of the above lenders will only let you switch to them if you have had a mortgage with your current lender for at least 12 months. See this thread for more details. That means that you are not eligible to switch to Permanent TSB or Avant right now – but you may be able to start the switching process now and complete it (draw down) in October. In the case of Haven and Finance Ireland, it is not clear if you can switch to them right now. In all cases, check with the lender to find out. Note that you can switch to AIB immediately.

If you want savings estimates for longer-term fixed rates, let me know.
 

Paul F

Registered User
Messages
732
Current lender: Ulster Bank
Outstanding mortgage balance: 262k
Approximate value of your property: 435k
The date you started your fixed-rate mortgage: September 2021
How many years you fixed for: 5
Your current mortgage interest rate: 2.2%
Your current monthly repayment: €907
Your property's BER: E
Are you due to get extra cashback from your current lender in the future: No
Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Ulster Bank (and please post it here when you receive it, including the date of the letter).

Note: you may receive two separate letters from Ulster Bank a few days apart, and their structure and wording can lead to confusion. Look for the line that says: "To break out of this fixed rate early, you would have to pay a fee of €X". That amount is your break fee. Ignore all other references to break fees.
  • Switching immediately to Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €1,040 over the next 4 years
    • You would have to shorten your mortgage term to 30 years to be eligible for this rate
    • The monthly repayment would be €962

  • Switching immediately to Permanent TSB's 5-year fixed rate (2.55% with €5,239 initial cashback and 2% monthly cashback) will save you about €820 over the next 4 years
    • Note that Permanent TSB discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Permanent TSB customer, the best rate you would be able to switch to today is 2.95%
    • 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 AIB's 4-year fixed rate (2.2% with €2,000 cashback) will save you about €540 over the next 4 years

  • Breaking and re-fixing on your current Ulster Bank's rate (5-year fixed rate at 2.2%) will not save or cost you anything over the next 4 years, but it will "reset the clock" and give you another 5 years on this rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • Note that if you decide to do this, your mortgage will soon move onto Permanent TSB's books, and they discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • The same warnings as above regarding higher Permanent TSB rates in the future apply

  • Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will leave you worse off by about €1,080 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will leave you worse off by about €2,000 over the next 4 years – but with the even-longer security of 7 years on a fixed rate
    • You would have to shorten your mortgage term to 30 years to be eligible for this rate
    • The monthly repayment would be €1,001

  • Switching immediately to Avant Money's 10-year fixed rate (2.4% with no cashback) will leave you worse off by about €3,520 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
    • You would have to shorten your mortgage term to 30 years to be eligible for this rate
    • The monthly repayment would be €1,022

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.4% with no cashback) will leave you worse off by about €3,540 over the next 4 years – but with the even-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

These savings estimates use for comparison the scenario of doing nothing. 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 (again, subject to certain conditions).

The estimates also assume that you get your loan-to-value ratio (LTV) below 60% so that you are eligible for the listed rates. Your LTV is currently 262k/435k = 60.2%. A slightly higher property valuation (€437k) and/or a few more monthly mortgage payments and/or a small overpayment will get you below 60%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

Some of the above lenders will only let you switch to them if you have had a mortgage with your current lender for at least 12 months. See this thread for more details. That means that you are not eligible to switch to Permanent TSB or Avant right now – but you may be able to start the switching process now and complete it (draw down) in October. In the case of Haven and Finance Ireland, it is not clear if you can switch to them right now. In all cases, check with the lender to find out. Note that you can switch to AIB immediately.

If you think there is a reasonable or strong possibility that you really will move in the next 4 to 6 years, you should probably fix for 5 or 7 years at most, unless you choose one of Finance Ireland's 10-year or longer fixed rates. That is because Finance Ireland's 10-year and longer fixed rates allow you to keep the same interest rate even after you move, which might appeal to you. (Note that you'll still have to pay legal and valuation fees when moving, and any extra amount you borrow in order to buy your new place will attract whatever interest rate Finance Ireland are offering at that time.) Ultimately, though, it's your decision.

If you want savings estimates for longer-term fixed rates, let me know.
 
Last edited:

Paul F

Registered User
Messages
732
  • Current lender - Ulster
  • Outstanding mortgage balance (how much you still owe) - 167877
  • Approximate value of your property - 450K
  • The date you started your fixed-rate mortgage (month and year) - Oct 2021
  • How many years you fixed for - 2 yrs (Ends on 31/12/2023)
  • Your current mortgage interest rate - 2.2%
  • Your current monthly repayment (excluding any overpayments) - 936.01, 18Yrs & 9 months remained.
  • Your property's BER (Building Energy Rating) – check it here or estimate it if necessary - A3
  • 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 and when? - None
Got two letters from Ulster bank after asking for a breakage fee. One letter says the breakage costs are 0 and other letter gave me different options to choose from (2 yrs fixed 2.2% ending on 30/06/2024; 4 yrs green mortgage @ 2.25% etc etc with some breakage costs for each option). I am just confused between two letters which says 0 and other letter with different breakage costs ranging from 2.5K to 3K... which one is correct out of those two letters if i want to break out of Ulster?

Your break fee is zero at the moment. (The break fees of €2.5k to €3k in the "rate sheet" letter refer to the maximum possible break fee in the future if you switch to that particular UB rate now.)
  • Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €1,960 over the next 4 years

  • Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €1,340 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)

  • Switching immediately to Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €220 over the next 4 years

  • Switching immediately to Ulster Bank's 4-year green fixed rate (2.25% with no cashback) will leave you worse off by about €140 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • Note that if you decide to do this, your mortgage will soon move onto Permanent TSB's books, and they discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Permanent TSB customer, the best rate you would be able to switch to today is 2.95%
    • So if you switch to this Ulster Bank offer now, you will probably not be eligible to switch to one of Permanent TSB's 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 Ulster Bank's 5-year fixed rate (2.35% with no cashback) will leave you worse off by about €760 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • The same warnings as above regarding higher Permanent TSB rates in the future apply

  • Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will leave you worse off by about €1,000 over the next 4 years

  • Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will leave you worse off by about €1,620 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 (2.4% with no cashback) will leave you worse off by about €2,560 over the next 4 years – but with the even-longer security of 10 years on a fixed rate

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.4% with no cashback) will leave you worse off by about €2,560 over the next 4 years – but with the even-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 "One Mortgage" (a 2.5% fixed rate with no cashback) will leave you worse off by about €3,180 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 18 years)

These savings estimates use for comparison the scenario of switching to the 2.25% rate with Ulster Bank when the current fixed rate ends. And that's assuming that Ulster Bank (or Permanent TSB, if they have taken over your mortgage by then) are even offering a 2.25% rate in January 2024 – 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.

It may seem like it is not worth switching to another lender but bear in mind that your mortgage will soon be owned by Permanent TSB, whose rates are much higher than Ulster Bank's. So if you don't switch now, you might find that you really want to switch in a few years' time, at which point rates might be higher (and it might be impossible to switch if your financial situation has deteriorated).

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 (again, subject to certain conditions).

Some of the above lenders will only let you switch to them if you have had a mortgage with your current lender for at least 12 months. See this thread for more details.
 

bluecabbage

Registered User
Messages
11
Current lender: PTSB
Outstanding mortgage balance: 380,000
Approximate value of your property: 560,000
The date you started your fixed-rate mortgage (month and year): ~Jan 2021
How many years you fixed for: 3 years
Your current mortgage interest rate: 2.5%
Your current monthly repayment (excluding any overpayments): 1719
Your property's BER (Building Energy Rating) – estimated if necessary: C1
Cashback: Get back 2% of monthly payment.

I contacted PTSB last week and they confirmed that the breakage fee is 0.

I'm looking at a longer period fixed, maybe the Avant 7 or 10 year but open to suggestions.
I already got cashbacks from BOI and PTSB.

Or perhaps I should just fix for 5 years and get the cash back from Haven?

I know its the million dollar question but whats your feeling on what fixed rates will look like in 5 or 7 years if I have to switch at that point again? My feelings are that 5 years is too soon and rates will still be higher than they are now. However this view is not based on much other than the fact that rates are on the way up at the moment!
 

luckycat007

New Member
Messages
1
Thanks for your help with this!

Waiting on KBC for their break fee calculation. Considering 4 year green BOI @ 1.9%, or PTSB 2.35% w/pretty significant cash back (5 year).

  • Current lender: KBC
  • Outstanding mortgage balance (how much you still owe): 360K
  • Approximate value of your property: 480K
  • The date you started your fixed-rate mortgage (month and year): 8/2020
  • How many years you fixed for: 3 yrs
  • Your current mortgage interest rate: 2.35%
  • Your current monthly repayment (excluding any overpayments): 2,356
  • Your property's BER (Building Energy Rating) – check it here or estimate it if necessary: B2
  • 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 and when? NO
 

Robert T

New Member
Messages
3
  • Switching immediately to Permanent TSB's 5-year green fixed rate (2.35% with €5,139 initial cashback and 2% monthly cashback) will save you about €10,460 over the next 4 years
    • Note that Permanent TSB discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Permanent TSB customer, the best rate you would be able to switch to today is 2.95%
    • 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 Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €10,220 over the next 4 years

  • Switching immediately to AIB's 5-year green fixed rate (2.15% with €2,000 cashback) will save you about €8,720 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)

  • Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €6,700 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to Avant Money's 7-year fixed rate (2.45% with no cashback) will save you about €3,640 over the next 4 years – but with the even-longer security of 7 years on a fixed rate
    • You would have to shorten your mortgage term to 30 years to be eligible for this rate
    • The monthly repayment would be €1,009

  • Switching immediately to Avant Money's 10-year fixed rate (2.6% with no cashback) will save you about €2,140 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
    • You would have to shorten your mortgage term to 30 years to be eligible for this rate
    • The monthly repayment would be €1,029

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.65% with no cashback) will save you about €1,660 over the next 4 years – but with the even-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
    • And your interest rate (initially 2.65%) will automatically fall as time passes and you move into lower loan-to-value (LTV) brackets. See the section "How we decide rate reductions" on this page.

  • Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% with no cashback) will leave you worse off by about €520 over the next 4 years. But 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 switching to the 3.0% rate with Bank of Ireland when the current fixed rate ends. And that's assuming that Bank of Ireland are even offering a 3.0% rate in October 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, 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 (again, subject to certain conditions).

The estimates also assume that you get your loan-to-value ratio (LTV) below 80% so that you are eligible for the listed rates. Your LTV is currently 257k/320k = 80.3%. A slightly higher property valuation (€322k) and/or a few more monthly mortgage payments and/or a small overpayment will get you below 80%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

If you're feeling brave, you could consider the strategy outlined in this thread: switch to Haven's 2.35% 3-year fixed rate and get the €5k cashback. Then quickly switch to Haven's 2.0% green rate. If it works, you will be better off by about €13,220 in four years' time. Nobody knows for sure if Haven will allow you to do this, so you might be stuck on the 2.35% rate, but at least you'd have got the €5k cashback.

Some of the above lenders will only let you switch to them if you have had a mortgage with your current lender for at least 12 months. See this thread for more details. That means that you are not eligible to switch to Permanent TSB or Avant right now – but you may be able to start the switching process now and complete it (draw down) in October. In the case of Haven and Finance Ireland, it is not clear if you can switch to them right now. In all cases, check with the lender to find out. Note that you can switch to AIB immediately.

If you want savings estimates for longer-term fixed rates, let me know.
Super helpful, many thanks

Is there a way for me to predict the breakage fee. I don’t know what R or R1 is in the formula provided by BOI

Thanks again
 

Kigera

Registered User
Messages
7
For Info, received a €0 break fee from Ulster Bank. Remaining with UB and going for a further 5 year fixed at 2.45%. Mortgage details provided below for reference:

Current lender - Ulster Bank
Outstanding mortgage balance (how much you still owe) - 240K
Approximate value of your property - 350K
The date you started your fixed-rate mortgage (month and year) - Aug 2019
How many years you fixed for - 5 yrs (Ends on 31/12/2024)
Your current mortgage interest rate - 2.6%
Your current monthly repayment (excluding any overpayments) - 875
Your property's BER (Building Energy Rating) – check it here or estimate it if necessary - D1
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 and when? - None
 

Paul F

Registered User
Messages
732
Current lender: PTSB
Outstanding mortgage balance: 380,000
Approximate value of your property: 560,000
The date you started your fixed-rate mortgage (month and year): ~Jan 2021
How many years you fixed for: 3 years
Your current mortgage interest rate: 2.5%
Your current monthly repayment (excluding any overpayments): 1719
Your property's BER (Building Energy Rating) – estimated if necessary: C1
Cashback: Get back 2% of monthly payment.
  • Switching immediately to Avant Money's 4-year fixed rate (2.05% with no cashback) will save you about €7,380 over the next 4 years

  • Switching immediately to AIB's 4-year fixed rate (2.2% with €2,000 cashback) will save you about €7,240 over the next 4 years

  • Switching immediately to Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €5,160 over the next 4 years

  • Switching immediately to Avant Money's 5-year fixed rate (2.25% with no cashback) will save you about €4,480 over the next 4 years

  • Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €3,700 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to Avant Money's 7-year fixed rate (2.35% with no cashback) will save you about €3,040 over the next 4 years – but with the even-longer security of 7 years on a fixed rate

  • Switching immediately to Avant Money's 10-year fixed rate (2.5% with no cashback) will save you about €840 over the next 4 years – but with the even-longer security of 10 years on a fixed rate

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.55% with no cashback) will save you about €120 over the next 4 years – but with the even-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
    • And your interest rate (initially 2.55%) will automatically fall as time passes and you move into lower loan-to-value (LTV) brackets. See the section "How we decide rate reductions" on this page.

  • Switching immediately to Permanent TSB's 5- or 7-year fixed rate (3.0% with 2% monthly cashback) will leave you worse off by about €3,760 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 switching to the 2.95% rate with Permanent TSB when the current fixed rate ends. And that's assuming that Permanent TSB are even offering a 2.95% rate in January 2024 – it could be higher (or lower). You would continue to get the Permanent TSB monthly cashback in such a scenario. 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 (again, subject to certain conditions).

The estimates also assume that your loan-to-value ratio (LTV) really is below 70% so that you are eligible for the listed rates. Your LTV estimate is 380.0k/560.0k = 67.9%. If you get a valuation of less than €543k, you will need to make a few more monthly mortgage payments and/or a small overpayment to get the LTV below 70%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

If you want savings estimates for longer-term fixed rates, let me know.

In order to keep this thread on topic, I won't speculate about future interest rates. But you could post another thread about it.
 
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