Key Post Switch or re-fix my mortgage? Breakage fee calculator and savings estimates for your case (Ireland)

[Paul F]

Current lender: BOI
Outstanding mortgage balance: 275k
Approximate value of your property: c500k (bought for 420k in 2018, increase based on sales of similar houses on road recently)
The date you started your fixed-rate mortgage: Sep 2018
How many years you fixed for: 5 years
Your current mortgage interest rate: 2.9%
Your current monthly repayment: 1641 (paying over 20 years)
Your property's BER: C3
Are you due to get extra cashback from your current lender in the future: Yes, c3200 in Sep 2023

@squareone

• Switching immediately to AIB's 4-year fixed rate (2.2% with €2,000 cashback) will save you about €5,240 over the next 4 years
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €3,640 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €5,000 cashback) will save you about €1,600 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €660 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€3,200) cashback) will leave you worse off by about €300 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will leave you worse off by about €1,380 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% and you would get the 1% (€3,200) cashback) will leave you worse off by about €3,540 over the next 4 years – but with the longer security of 10 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will leave you worse off by about €3,940 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 leave you worse off by about €4,460 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 3.4% fixed rate with no cashback) will leave you worse off by about €9,000 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term
  • You would have to shorten your mortgage term to 15 years to be eligible for this rate
  • The monthly repayment would be €1,952
  
  
• Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €9,100 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • The monthly repayment would be €1,709
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 3.5% fixed rate with no cashback) will leave you worse off by about €10,140 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 18 years)
  • The monthly repayment would be €1,723

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 switching to a 3% rate with Bank of Ireland when the current fixed rate ends. And that's assuming that Bank of Ireland are even offering a 3% rate in September 2023 – it could be higher (or lower). You would get the Bank of Ireland €3,200 future cashback in such a scenario, and the savings estimates account for this. 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).

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).

Even though it is usually quick to re-fix with your current lender, it is still possible for rates to rise while you are in the middle of the process, which could potentially leave you worse off than if you had done nothing. Ask Bank of Ireland if they will guarantee today's rate for you if you start the process of re-fixing with them.

would appreciate any guidance you could provide in light of the latest ECB rises

Note that none of the above lenders have increased their rates since the ECB announced its latest increases last week, but they may do so quite soon.

 

[squareone]

@squareone

• Switching immediately to AIB's 4-year fixed rate (2.2% with €2,000 cashback) will save you about €5,240 over the next 4 years
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €3,640 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €5,000 cashback) will save you about €1,600 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €660 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€3,200) cashback) will leave you worse off by about €300 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will leave you worse off by about €1,380 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% and you would get the 1% (€3,200) cashback) will leave you worse off by about €3,540 over the next 4 years – but with the longer security of 10 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will leave you worse off by about €3,940 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 leave you worse off by about €4,460 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 3.4% fixed rate with no cashback) will leave you worse off by about €9,000 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term
  • You would have to shorten your mortgage term to 15 years to be eligible for this rate
  • The monthly repayment would be €1,952
  
  
• Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €9,100 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • The monthly repayment would be €1,709
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 3.5% fixed rate with no cashback) will leave you worse off by about €10,140 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 18 years)
  • The monthly repayment would be €1,723

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 switching to a 3% rate with Bank of Ireland when the current fixed rate ends. And that's assuming that Bank of Ireland are even offering a 3% rate in September 2023 – it could be higher (or lower). You would get the Bank of Ireland €3,200 future cashback in such a scenario, and the savings estimates account for this. 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).

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).

Even though it is usually quick to re-fix with your current lender, it is still possible for rates to rise while you are in the middle of the process, which could potentially leave you worse off than if you had done nothing. Ask Bank of Ireland if they will guarantee today's rate for you if you start the process of re-fixing with them.


Note that none of the above lenders have increased their rates since the ECB announced its latest increases last week, but they may do so quite soon.

Thanks Paul, really appreciate it

 

[Sir Bob Paisley]

• urrent lender: Finance Ireland
• Outstanding mortgage balance : €272,000
• Approximate current value of your property : €1,025,000
• The date you started your fixed-rate mortgage (month and year): August 2022
• How many years you fixed for: 15
• Your current mortgage interest rate : 2.9%
• Your current monthly repayment : €1635
• Your property's BER (Building Energy Rating) – A3
• Are you due to get extra cashback from your current lender in the future: No

Think we should have switched to AIB green fixed - what Finance Ireland break out fees like

 

[Paul F]

@Sir Bob Paisley What is the exact date you drew down your mortgage funds from Finance Ireland?

Out of interest, how long did the switch to Finance Ireland take from start to finish?

Did you wait for the extra 1% cashback from BOI in the end?

BOI 1% cash back after 5 years

Hi, On 6th September we will be 5 years with BOI and due another 1% cash back. I’m ready to move to Finance Ireland so can I push the button to move on 6th September or do I need to wait for the 1% to be lodged into my account. What are other’s experiences with the 1% and how is it...

www.askaboutmoney.com

 

[Sir Bob Paisley]

@Sir Bob Paisley What is the exact date you drew down your mortgage funds from Finance Ireland?

Out of interest, how long did the switch to Finance Ireland take from start to finish?

Did you wait for the extra 1% cashback from BOI in the end?

BOI 1% cash back after 5 years

Hi, On 6th September we will be 5 years with BOI and due another 1% cash back. I’m ready to move to Finance Ireland so can I push the button to move on 6th September or do I need to wait for the 1% to be lodged into my account. What are other’s experiences with the 1% and how is it...

www.askaboutmoney.com

Switched on Aug 25th, got the 1% from BOI and the original mortgage offer letter had a different date then what I was told over the phone.

Started the process on 6th June

 

[Paul F]

• [Current] lender: Finance Ireland
• Outstanding mortgage balance : €272,000
• Approximate current value of your property : €1,025,000
• The date you started your fixed-rate mortgage (month and year): [25th] August 2022
• How many years you fixed for: 15
• Your current mortgage interest rate : 2.9%
• Your current monthly repayment : €1635
• Your property's BER (Building Energy Rating) – A3
• Are you due to get extra cashback from your current lender in the future: No

Think we should have switched to AIB green fixed - what Finance Ireland break out fees like

@Sir Bob Paisley Your break fee might be zero at the moment but you'd need to check it with Finance Ireland. And it could potentially become very large over the next few months, depending on how wholesale interest rates move.

AIB might not let you switch to them until you have been with Finance Ireland for at least six months.

Even if AIB relax that rule, it's conceivable that AIB's green rate could be 2.85% or higher by the time you complete the switch to them (in, say, three or four months' time).

Your 2.9% 15-year fixed rate looks like very good value and you are probably better off staying on that rate.

But if you are still determined to pursue the switch to AIB, you could start the process now and ask them if they will relax the "six months" rule. You could abandon the switch if the break fee quotes (which you would need to request regularly from Finance Ireland) are getting too high or if AIB put up their rates by more than you would accept. (But you could be liable for fees if you have engaged the services of a solicitor by the time you abandon the switch.)

 

[tommyryan55]

Hi Paul,

Can you have a look at our situation, new mortgage taken out in May, original plan was to move to AIB at the end of the fixed rate once I had the BER at B3.

• Current lender : EBS
• Outstanding mortgage balance : 215,000, I could reduce this figure to 200,000 to get a better rate
• Approximate current value of your property : €400,000
• The date you started your fixed-rate mortgage (month and year) : May 2022
• How many years you fixed for : 1
• Your current mortgage interest rate : 2.9%
• Your current monthly repayment : €944
• Your property's BER (Building Energy Rating) – C1
• Are you due to get extra cashback from your current lender in the future : Yes (€2,170) May 2027

 

[Paul F]

• Current lender : EBS
• Outstanding mortgage balance : 215,000, I could reduce this figure to 200,000 to get a better rate
• Approximate current value of your property : €400,000
• The date you started your fixed-rate mortgage (month and year) : May 2022
• How many years you fixed for : 1
• Your current mortgage interest rate : 2.9%
• Your current monthly repayment : €944
• Your property's BER (Building Energy Rating) – C1
• Are you due to get extra cashback from your current lender in the future : Yes (€2,170) May 2027

@tommyryan55 Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with EBS. If it is higher than zero, please post it here when you receive it, including the date of the letter.

• Switching immediately to AIB's 5-year fixed rate (2.45% with €2,000 cashback) will save you about €3,260 over the next 4 years
  • The rate would be 2.35% with €2,000 cashback if you reduced your balance to €200k
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €2,000 cashback) will save you about €1,580 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to EBS's 5-year fixed rate (2.75% and you would get the €2,170 cashback in May 2027) will save you about €200 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • And if EBS are still offering a green mortgage rate by the time you improve your BER, you could switch to that rate (provided that the rate is still good and the break fee isn't too high).
  • Note: EBS may argue that by switching to the green rate you become ineligible for the 1% cashback in the future. But there is nothing in the terms and conditions that allows them to deny you the cashback – see this thread. You may have to make this argument to EBS, or even to the Ombudsman, in order to get the cashback, however.
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €2,000 cashback) will leave you worse off by about €80 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to AIB's 7-year fixed rate (3.05% with €2,000 cashback) will leave you worse off by about €1,740 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 leave you worse off by about €2,540 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 Finance Ireland's 20-year fixed rate (3.0% with no cashback) will leave you worse off by about €3,360 over the next 4 years – but with the longer security of 20 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 Finance Ireland's 25-year fixed rate (3.15% with no cashback) will leave you worse off by about €4,620 over the next 4 years – but with the longer security of 25 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 switching to a 2.75% rate with EBS when the current fixed rate ends. And that's assuming that EBS are even offering a 2.75% rate in May 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.

You should call EBS and tell them that you have started the process of switching to another lender. Ask them what interest rates they will offer you to break and re-fix with them. Please post a summary of their response here.

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 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).

I have not included rates for other lenders because you are not eligible to switch to them until you have been with your current lender for at least 12 months.

Bear in mind that interest rates are very likely to 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).

Even though it is usually quick to re-fix with your current lender, it is still possible for rates to rise while you are in the middle of the process, which could potentially leave you worse off than if you had done nothing. Ask EBS if they will guarantee today's rate for you if you start the process of re-fixing with them.

 

[Emma123456]

@Emma123456

• Switching immediately to Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €6,380 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 right now, the best rate you would be able to switch to today is 3.0%
  • 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 5-year fixed rate (2.45% with €2,000 cashback) will save you about €4,640 over the next 4 years
  
  
• Switching immediately to Haven's 5-year fixed rate (2.55% with €2,000 cashback) will save you about €3,820 over the next 4 years
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €2,000 cashback) will save you about €3,020 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.55% with no cashback) will save you about €1,800 over the next 4 years
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €2,000 cashback) will save you about €1,380 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.75% with no cashback) will save you about €160 over the next 4 years
  
  
• Re-fixing immediately on Bank of Ireland's 5-year fixed rate (3.0% with no cashback) will leave you worse off by about €380 over the next 4 years, but it will "reset the clock" on the fixed-rate period. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  
  
• Switching immediately to Avant Money's 7-year fixed rate (3.05% with no cashback) will leave you worse off by about €2,280 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 (3.05% with no cashback) will leave you worse off by about €2,280 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
  • And your interest rate (initially 3.05%) will fall to 2.9% in 5 years and 7 months when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.
  
  
• Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% with no cashback) will leave you worse off by about €2,980 over the next 4 years – but with the longer security of 10 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (3.15% with no cashback) will leave you worse off by about €3,100 over the next 4 years – but with the longer security of 20 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 3.15%) will fall to 3.0% in 5 years and 8 months when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.
  
  
• Switching immediately to Finance Ireland's 25-year fixed rate (3.3% with no cashback) will leave you worse off by about €4,320 over the next 4 years – but with the longer security of 25 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 3.3%) will fall to 3.15% in 5 years and 9 months when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.
  
  
• Switching immediately to Avant Money's 10-year fixed rate (3.5% with no cashback) will leave you worse off by about €5,960 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 3.65% fixed rate with no cashback) will leave you worse off by about €7,200 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 27 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 switching to a 2.9% rate with Bank of Ireland when the current fixed rate ends. And that's assuming that Bank of Ireland are even offering a 2.9% rate in October 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 (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 70% or below so that you are eligible for some of the rates listed above (those from Avant and Finance Ireland). Your LTV estimate is 210.0k/300.0k = 70.0%. If you get a valuation of less than €300k, you will need to make a few more monthly mortgage payments and/or a lump sum 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. (Your LTV is not a concern if you decide to switch to any of the other lenders listed above.)

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).

Even though it is usually quick to re-fix with your current lender, it is still possible for rates to rise while you are in the middle of the process, which could potentially leave you worse off than if you had done nothing. Ask Bank of Ireland if they will guarantee today's rate for you if you start the process of re-fixing with them.

PS Can you confirm that you really are not due to get 1% cashback from Bank of Ireland in the future?

Thanks Paul, BOI confirmed today that we are actually due the 1% cashback in 2024 so I think we're going to refix with then now for another 5 yrs @3%, breakage fee is zero as of today.

 

[Lecoqdiesel]

I had previously posted in here about switching. So just to update on progress. I applied to switch to AIB through the MyMortgage web app. I'm currently with BoI and just 2 years into a 5 year fixed term at 3%. Looking to switch to AIB 5 year Green mortgage at 2.1%. Paul calculated break fee at zero and I verified that with a call to BoI. I guess I should call again soon to check as if it was to go from zero to any significant amount. It wouod erode savings from switching.

Anyways I first applied on August 30th. And I had everything uploaded by the end of the week. Pay slips, bank statements, salary certs from job, end of year tax statement, solicitor details, latest annual statement for current mortgage etc. My advice there would be to work on those immediately to avoid delays. I found I was getting replies and updates within 2-3 days of uploading things or replying myself.

You also need to go to an AIB bank with photo ID and a bill for each applicant as proof of address. Do that first day or as early as you can as it tool a few days for it to reflect it as being done on the application.

As of today, we have our letter of offer issued. So bang on 3 weeks to the day to get to this point. Not sure how much further it will be once at this stage. Already have BER cert, life cover schedule and home insurance ready to send. Will need to get house valued too. I'd be hoping from this point on is 2-3 weeks at most.

If you get a letter of offer outlining the interest rate. Is that locked in for a certain time period or can it change? Also with break fees, is there any time period where it applies for? Like if no break fee today, can that change tomorrow or is it valid for some days? I never requested it in writing. Just verbally told over the phone.

 

[Kfox92]

Thanks so much Paul. I had done out a few spreadsheets on this but to have all this info in front of me is great! I'll keep ye posted on what the break fee is and what path I end up taking!

Just an update on this. I re-fixed for 5 years with BOI after going through most of the better options. It was largely delays on my side, but after much thought and some processes started I stayed put. In the end, just resetting the clock and ensuring the cashback is still there was good enough for me.
For reference my exit fee was null on 09.2022 having taken out a mortgage at 3% in 10.2020

 

[Paul F]

Paul calculated break fee at zero and I verified that with a call to BoI. I guess I should call again soon to check as if it was to go from zero to any significant amount. It wouod erode savings from switching.

Also with break fees, is there any time period where it applies for? Like if no break fee today, can that change tomorrow or is it valid for some days? I never requested it in writing. Just verbally told over the phone.

@Lecoqdiesel In your particular case your break fee is very unlikely to go above zero for the next few months.

Looking to switch to AIB 5 year Green mortgage at 2.1%.

Anyways I first applied on August 30th. And I had everything uploaded by the end of the week. Pay slips, bank statements, salary certs from job, end of year tax statement, solicitor details, latest annual statement for current mortgage etc. My advice there would be to work on those immediately to avoid delays. I found I was getting replies and updates within 2-3 days of uploading things or replying myself.

You also need to go to an AIB bank with photo ID and a bill for each applicant as proof of address. Do that first day or as early as you can as it tool a few days for it to reflect it as being done on the application.

As of today, we have our letter of offer issued. So bang on 3 weeks to the day to get to this point.

That is extremely fast for getting a letter of offer from AIB, based on what I've heard and what I've read here. Let's hope that it means that they are getting faster for all switchers.

If you get a letter of offer outlining the interest rate. Is that locked in for a certain time period or can it change?

Very few lenders will let you "lock in" a particular interest rate when you are in the middle of the switching process. I know that AIB reserve the right to change the interest rate at any time right up to the point of drawdown.

You will just have to hope that you get over the line before any rate increases. Or that, even if AIB do increase their rates, it still makes sense for you to proceed with the switch. Bear in mind that you might be liable for solicitors' fees if you abandon the switch after engaging the services of a solicitor. And also bear in mind that we might reasonably expect AIB to be better value over the long term than BOI.

The best thing you can do now is to keep working through the remaining tasks. If you don't already have a solicitor, organise that. But try to get a recommendation for a solicitor who is responsive and diligent.

 

[Lecoqdiesel]

In your particular case your break fee is very unlikely to go above zero for the next few months.

Well that's a nice bit of reassurance. This was my main concern.

That is [I]extremely[/I] fast for getting a letter of offer from AIB, based on what I've heard and what I've read here. Let's hope that it means that they are getting faster for [I]all[/I] switchers.

I was well drilled on getting everything in that they required, which i think helped. Within 2 days I had all of the initial requests and was into my local branch to verify ID by the Friday. I'll update when the whole process goes through to give an idea of timelines.

Very few lenders will let you "lock in" a particular interest rate when you are in the middle of the switching process. I know that AIB reserve the right to change the interest rate at any time right up to the point of drawdown.

You will just have to hope that you get over the line before any rate increases. Or that, even if AIB do increase their rates, it still makes sense for you to proceed with the switch. Bear in mind that you might be liable for solicitors' fees if you abandon the switch after engaging the services of a solicitor. And also bear in mind that we might reasonably expect AIB to be better value over the long term than BOI.

Would be great if we can get it over the line at the 2.1% interest rate. Currently on 3% with BoI and €2,400 Euro cashback in 3 years time. So a bit of wiggle room for an increase with AIB to still make it worthwhile and lock in an additional 2 years fixed. Especially if break fee stays at zero. The €2,000 grand cashback from AIB will cover solicitor and valuation costs.

The best thing you can do now is to keep working through the remaining tasks. If you don't already have a solicitor, organise that. But try to get a recommendation for a solicitor who is responsive and diligent.

We're using the same solicitor from the sale of our old house and purchase of our current property 2 years ago. And she was brilliant. Very much on the ball during our sale and purchase. Hopefully she hasn't changed.

Cheers for the reply Paul.

 

[Kerry1234]

Sorry I drew down in Jan 2018 at a rate of 3% fixed rate for 5yrs. I went back and renegotiated the rate to 2.8% in Oct 2018 and hence that's when the 5yr term expires

Hi Paul
Just to update on my case. Started the process to switch to Avant in April. Huge delays from Avant which meant the 1.95% interest rate was no longer available by time they approved our application (despite letters apologizing for the delay).
We did succeed in securing 2.25% for 7 years in the last two weeks.
Our breakage fee from BOI was 1650 approx. Does that sound right?

 

[Paul F]

Just to update on my case. Started the process to switch to Avant in April. Huge delays from Avant which meant the 1.95% interest rate was no longer available by time they approved our application (despite letters apologizing for the delay).
We did succeed in securing 2.25% for 7 years in the last two weeks.

That's annoying about the delays but 2.25% is still really good for a 7-year fix.

Our breakage fee from BOI was 1650 approx. Does that sound right?

No, I would fully have expected it to be zero. When did you actually break? Was it about two weeks ago?

Are you sure the €1,650 approx refers to the break fee on its own and nothing else?

Ask BOI for the full calculation of how they arrived at your break fee, including the interest rates they used.

 

[jamestkirk]

Thinking of switching to Avant. I have 13 years left on Mortgage with 153k left. On a tracker at 2.40 for main mortgage with sub account on a fixed rate of 2.45. Only started on sub mortgage fixed rate this year.

I'm reading a lot on switching but am going around in circles... anyone offer me advice? Im with UB.

Many thanks

 

[Paul F]

Thinking of switching to Avant. I have 13 years left on Mortgage with 153k left. On a tracker at 2.40 for main mortgage with sub account on a fixed rate of 2.45. Only started on sub mortgage fixed rate this year.

I'm reading a lot on switching but am going around in circles... anyone offer me advice? Im with UB.

@jamestkirk Because you have a tracker and a fixed rate, please post your questions in the UB tracker thread. But feel free to come back here and post your details if you decide to switch lenders.

 

[newbie1234]

Just gone sale agreed on the following 2 properties and wondering what will the settlement fee be when paying off mortgages..
Thanks

Property 1
Current lender: UB
Outstanding mortgage balance: 94,851
Approximate value of your property: 500k
17 years 1 months left
Current product end 31-3-26
Began 31-3-20
Your current mortgage interest rate: 2.99%
Your current monthly repayment: 665
Your property's BER: B2
Are you due to get extra cashback from your current lender in the future: no

Property 2
Current lender: UB
Outstanding mortgage balance: 86,380
Approximate value of your property: 160k
12 years 2 months left
Current product end 31-12-31
Began 31-12-21
Your current mortgage interest rate: 2.8%
Your current monthly repayment: 719
Your property's BER: C3
Are you due to get extra cashback from your current lender in the future: no

 

[Paul F]

@newbie1234 Please edit the two sets of details and include every piece of info that is requested here. (The year and month when you fixed are missing in both cases.)

 

[newbie1234]

@newbie1234 Please edit the two sets of details and include every piece of info that is requested here. (The year and month when you fixed are missing in both cases.)

Thats done, apologies