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

[Midtablemanager]

I requested my break fee on the 7th of June. I received the break fee letter on the 10th and the rate options form on the 15th.

My fee was valid until the 20th.

Thanks I requested mine either the 7th or 8th and have yet to see either. Will give the a buzz tomorrow if neither has still arrived.

 

[Jubman]

Hi Paul. Can you please provide guidance for the following.

• Current lender: PTSB
• Outstanding mortgage balance (how much you still owe): 292k
• Approximate value of your property: 700k
• The date you started your fixed-rate mortgage (month and year): Mar 2021
• How many years you fixed for: 3
• Your current mortgage interest rate: 2.5%
• Your current monthly repayment (excluding any overpayments): €1,867
• Your property's BER : A2
• Are you due to get extra cashback? No.

Slight update, I am receiving 2% cashback on the scheduled monthly mortgage
repayment until 31 Dec 2027.

 

[Midtablemanager]

I requested my break fee on the 7th of June. I received the break fee letter on the 10th and the rate options form on the 15th.

My fee was valid until the 20th.

Break fee arrived this morning from UB. Letter is dated the 13th so must have taken them a few days to process. Valid until the 24th.

 

[Paul F]

Current lender: KBC
Outstanding mortgage balance: €391,000
Approximate value of your property: €570,000
The date you started your fixed-rate mortgage: April 2022
How many years you fixed for: 3
Your current mortgage interest rate: 2.3%
Your current monthly repayment: €1444.19
Your property's BER: D1
Cashback?: None

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

• Switching immediately to Permanent TSB's 3-year fixed rate (2.5% with €7,820 initial cashback and 2% monthly cashback) will save you about €4,920 over the next 3 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 Permanent TSB's 5-year fixed rate (2.55% with €7,820 initial cashback and 2% monthly cashback) will save you about €4,340 over the next 3 years
  • The same warnings as above regarding higher Permanent TSB rates in the future apply
  
  
• Switching immediately to Haven's 3-year fixed rate (2.35% with €5,000 cashback) will save you about €2,960 over the next 3 years
  
  
• Switching immediately to AIB's 4-year fixed rate (2.2% with €2,000 cashback) will save you about €1,680 over the next 3 years
  
  
• Switching immediately to Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €660 over the next 3 years
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will leave you worse off by about €480 over the next 3 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to KBC's 5-year fixed rate (2.45% with no cashback) will leave you worse off by about €1,730 over the next 3 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 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 7-year fixed rate (2.35% with no cashback) will leave you worse off by about €2,060 over the next 3 years – but with the 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 €1,515
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €5,000 cashback) will leave you worse off by about €2,800 over the next 3 years – but with the even-longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's 10-year fixed rate (2.5% with no cashback) will leave you worse off by about €3,780 over the next 3 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 €1,545
  
  
• Switching immediately to KBC's 10-year fixed rate (2.99% with no cashback) will leave you worse off by about €8,120 over the next 3 years – but with the even-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).
  • The same warnings as above regarding higher Bank of Ireland rates in the future apply
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (3.05% with no cashback) will leave you worse off by about €10,140 over the next 3 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 3.05%) 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 2.3% 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 2.3% 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) really is below 70% so that you are eligible for the listed rates. Your LTV estimate is 391.0k/570.0k = 68.6%. If you get a valuation of less than €559k, 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.

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 probably apply simultaneously to two or more lenders for approval in principle (AIP).

 

[Gabe77]

Switching immediately to KBC's 3-year fixed rate (2.25% with no cashback) will leave you worse off by about €20 over the next 3 years

If I was to do this then the only thing to pay would be the valuation fee which I believe is around €80.
So I would be worse off by €80 rather than €20 is that correct but I'd have an extra 15 month fixed rate (July 2025)?

The client legal fees was an error on my part. Breakage fee is zero.

 

[The Oggster]

@Paul F You wanted me to post in here when I found out my break fee.

Date requested: 16/06/2022
Bank: KBC
When fixed started: Jan 2019 for 5 years.
Break fee: €0

 

[Leighlinboy]

Many thanks for the detailed prompt response !

@Paul F Any idea what the breaking fee for Finance Ireland is , if one was to break in middle of 5 year fixed , the broker gave me a watery answer, messaged FI , nothing on site , anyone have any experience of this ?

 

[Rory_H]

This thread has opened my eyes to how much I am potentially losing out by

• Current lender - BoI
• Outstanding mortgage balance (how much you still owe) - 184,500
• Approximate value of your property - 240,000
• The date you started your fixed-rate mortgage (month and year) - April 2019
• How many years you fixed for - 5
• Your current mortgage interest rate - 3.2%
• Your current monthly repayment (excluding any overpayments) €777
• 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? 1% in April 2024 (Approx €1,970)

BoI have stated that my break fee is €0 at the moment

 

[lialwarrior]

Hi, looking to know what the overall cost will be for me to change to Avant for a fixed rate over 17 years. I am interested in the security of having my mortgage fixed for the remainder of its life.

I have literally been able to lock in again with AIB for 5 years at 2.1% this week, so there is comfort in that, however I would be glad to jump if I can at 2.5% with Avant for 17 years.

As far as I know it is €0 for break fee at the minute.

Many thanks in advance for your help!

• Current lender - AIB
• Outstanding mortgage balance (how much you still owe) - 218,000
• Approximate value of your property - 600,000
• The date you started your fixed-rate mortgage (month and year) - June 2022
• How many years you fixed for - 5
• Your current mortgage interest rate - 2.1%
• Your current monthly repayment (excluding any overpayments) €1294
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary - B1
• 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

 

[narkymark]

Hi @Paul F .

This is a great thread, thanks for your information.

I am wondering about switching. My details are:

• Current lender Ulster Bank
• Outstanding mortgage balance (how much you still owe) 198k
• Approximate value of your property 650k
• The date you started your fixed-rate mortgage (month and year) 10/19
• How many years you fixed for 4 years
• Your current mortgage interest rates 2.6%
• Your current monthly repayment (excluding any overpayments) 1242
• 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? No.

I have in mind Avant Money perhaps with a top up.

Thanks

 

[Paul F]

If I was to do this then the only thing to pay would be the valuation fee which I believe is around €80.
So I would be worse off by €80 rather than €20 is that correct but I'd have an extra 15 month fixed rate (July 2025)?

@Gabe77 My savings estimates already assume a valuation fee of €150, even if breaking and re-fixing with KBC.

Yes, you would have an extra 15 months on the new fixed rate compared to your current fixed rate.

 

[Paul F]

@Paul F Any idea what the breaking fee for Finance Ireland is , if one was to break in middle of 5 year fixed , the broker gave me a watery answer, messaged FI , nothing on site , anyone have any experience of this ?

@Leighlinboy Please your mortgage details in the format shown in the first post.

If you are talking about the break fee in a hypothetical future scenario, that cannot be predicted with any certainty.

 

[lomber]

I'm amazed how low peoples monthly repayments are. 600k property and 1200 a month? I'm in a 500 k property with 350k balance @ 1850 a month at 3.3
People must have very very long terms here or have bought these houses in 2012. At low rates the interest doesn't make that much difference in monthlys

 

[Paul F]

• Current lender: PTSB
• Outstanding mortgage balance (how much you still owe): 292k
• Approximate value of your property: 700k
• The date you started your fixed-rate mortgage (month and year): Mar 2021
• How many years you fixed for: 3
• Your current mortgage interest rate: 2.5%
• Your current monthly repayment (excluding any overpayments): €1,867
• Your property's BER : A2
• Are you due to get extra cashback? No.

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

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €6,040 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 €4,980 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 €4,520 over the next 4 years
  
  
• Switching immediately to Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €3,200 over the next 4 years
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €2,420 over the next 4 years
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €2,140 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 save you about €1,360 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €5,000 cashback) will not save you or cost you anything over the next 4 years – but with the even-longer security of 10 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 €240 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 2.5% fixed rate with no cashback) will leave you worse off by about €1,300 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 16 years)
  
  
• Switching immediately to Permanent TSB's 5-year green fixed rate (2.8% with 2% monthly cashback) will leave you worse off by about €1,660 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 Permanent TSB's 7-year fixed rate (3.0% with 2% monthly cashback) will leave you worse off by about €3,820 over the next 4 years. 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 €5,580 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 switching to the 2.8% rate with Permanent TSB when the current fixed rate ends. And that's assuming that Permanent TSB are even offering a 2.8% rate in March 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).

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 €9,040 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.

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 probably apply simultaneously to two or more lenders for approval in principle (AIP).

 

[Paul F]

• Current lender - KBC
• Outstanding mortgage balance (how much you still owe) - 198K
• Approximate value of your property - 450K
• The date you started your fixed-rate mortgage (month and year) August 2020
• How many years you fixed for - 2 Years, about to come off the fixed rate
• Your current mortgage interest rate - 2.25%
• Your current monthly repayment (excluding any overpayments) - €1,103 - 18 years remaining
• 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? No

@Runner1 Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with KBC. If it is higher than zero, please post it here when you receive it, including the date of the letter.

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €3,420 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 €2,700 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 €1,760 over the next 4 years
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €280 over the next 4 years
  
  
• Switching immediately to KBC's 5-year fixed rate (2.4% with no cashback) will leave you worse off by about €50 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 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 7-year fixed rate (2.25% with no cashback) will leave you worse off by about €440 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €2,000 cashback) will leave you worse off by about €1,340 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 €1,540 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 2.5% fixed rate with no cashback) will leave you worse off by about €2,280 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 18 years)
  
  
• Switching immediately to KBC's 10-year fixed rate (2.85% with no cashback) will leave you worse off by about €3,370 over the next 4 years – but with the even-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).
  • The same warnings as above regarding higher Bank of Ireland rates in the future apply
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will leave you worse off by about €5,240 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 switching to the 2.4% 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 2.4% rate in August 2022 – 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 Bank of Ireland, whose rates are much higher than KBC'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).

Note that I have shown the estimated savings over the next four years. Over the next five years, the savings would be higher (for AIB's 5-year fixed rate and for Avant's 5- and 7- year fixed rates).

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).

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 probably apply simultaneously to two or more lenders for approval in principle (AIP).

As above, about to come off our Fixed Term, looking to to fix for 5 years based on the impending rate increases. I have completed the following calculations; just looking to verify and make sure I am not missing anything. I used Switcher.ie to see the monthly repayments. Based on the below, it looks like it would not be worth switching based on the potential savings (€1,691 over 5 years to switch to AIB green mortgage)

[Table of savings]

You cannot assess the savings from switching based on the monthly repayments alone. See @Brendan Burgess's thread on the topic.

The main thing to look at is the difference in interest rates.

But you also have to factor in the costs of switching and any cashback you might receive.

time involved in process with the risk of further increases during the application process, would welcome thoughts/comments.

One option you have is to immediately break and re-fix with KBC on the 2.4% rate. At the same time, if you were inclined to, you could start the process of switching to another lender. You would have to hope that the break fee when it comes time to complete the switch is low or zero, but if it looks like the break fee is getting too high (or if interest rates have risen too much), you could abandon the switch safe in the knowledge that you have secured the 5-year 2.4% fixed rate with KBC – provided you haven't yet engaged the services of a solicitor.

 

[Ada20211]

Fantastic thread here, just looking at switching now as we were given a 0 breakage fee by bank of Ireland during the week (last time we enquired two years ago it was 11k!)

Current situation is :

Current lender - Bank of Ireland
Outstanding mortgage balance (how much you still owe) - 192,446EUR
Approximate value of your property- 300,000EUR
The date you started your fixed-rate mortgage (month and year) - August 2018
How many years you fixed for - 10
Your current mortgage interest rate - 3.5
Your current monthly repayment (excluding any overpayments) - 1330EUR
Your property's BER (Building Energy Rating) – check it here or estimate it if necessary - C3
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 1% after 5 years

Thanks in advance !!

 

[Paul F]

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 1% after 5 years

@Ada20211 What is the monetary amount of the 1% cashback?

 

[Paul F]

• Current lender - AIB
• Outstanding mortgage balance (how much you still owe) - 170k
• Approximate value of your property - 300k
• The date you started your fixed-rate mortgage (month and year) July 2021
• How many years you fixed for - 3 Years
• Your current mortgage interest rate - 2.45%
• Your current monthly repayment (excluding any overpayments) - €616 - 34 years remaining
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary - C1
• 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

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

• Switching immediately to Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €1,800 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 €624
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €480 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 €641
  
  
• Switching immediately to AIB's 5-year fixed rate (2.45% with no cashback) will not save you or cost you anything 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 7-year fixed rate (2.25% with no cashback) will leave you worse off by about €180 over the next 4 years – but with the 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 €650
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €2,000 cashback) will leave you worse off by about €800 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to KBC's 10-year fixed rate (2.85% with €3,000 cashback) will leave you worse off by about €1,120 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  • 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).
  • You must apply by 15 July 2022 if you wish to switch to KBC. You would also have to open a current account with them.
  
  
• Switching immediately to Avant Money's 10-year fixed rate (2.4% with no cashback) will leave you worse off by about €1,160 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 €663
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €2,000 cashback) will leave you worse off by about €2,120 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 (2.9% with no cashback) will leave you worse off by about €4,500 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 AIB's 10-year fixed rate (3.2% with no cashback) will leave you worse off by about €5,000 over the next 4 years – but with the even-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).

These savings estimates use for comparison the scenario of switching to the 2.45% rate with AIB when the current fixed rate ends. And that's assuming that AIB are even offering a 2.45% rate in July 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) really is below 60% so that you are eligible for the listed rates. Your LTV estimate is 170.0k/300.0k = 56.7%. If you get a valuation of less than €284k, you will need to make a few more monthly mortgage payments and/or a small overpayment to get the LTV 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.

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

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 probably apply simultaneously to two or more lenders for approval in principle (AIP).

 

[Ada20211]

@Ada20211 What is the monetary amount of the 1% cashback?

Hi Paul, I believe it would be 2295EUR , thanks!

 

[Paul F]

• Current lender: Bank of Ireland
• Outstanding mortgage balance (how much you still owe): €240,875 on 16 Jun 2022
• Approximate value of your property: €400,000
• The date you started your fixed-rate mortgage (month and year): 21 Sep 2018.
• How many years you fixed for: 5
• Your current mortgage interest rate: 3.0%
• Your current monthly repayment (excluding any overpayments): €1107 standard repayment, making the allowable 10% overpayment of €123 on top of this also (€1230 total).
• Your property's BER (Building Energy Rating): A3
• Are you due to get extra cashback from your current lender in the future: Yes, I confirmed today with BOI that I will receive 1% of the €265,500 I borrowed. Due €2,655 cashback at the end of the fixed period.

@Paxton

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €7,040 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 €5,680 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 €5,460 over the next 4 years
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €3,640 over the next 4 years
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will save you about €2,720 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Permanent TSB's 7-year fixed rate (3.0% with €4,816 initial cashback and 2% monthly cashback) will save you about €1,600 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • 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 Avant Money's 10-year fixed rate (2.4% with no cashback) will save you about €1,360 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €2,000 cashback) will save you about €1,100 over the next 4 years
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 2.5% fixed rate with no cashback) will save you about €440 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 22 years)
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €2,000 cashback) will leave you worse off by about €740 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€2,655) cashback) will not save you or cost you anything 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 Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will leave you worse off by about €3,220 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 Finance Ireland's 20-year fixed rate (3.0% with no cashback) will leave you worse off by about €4,160 over the next 4 years – but with the even-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 Bank of Ireland's 10-year fixed rate (3.3% and you would get the 1% (€2,655) cashback) will leave you worse off by about €2,790 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 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 September 2023 – it could be higher (or lower). You would get the Bank of Ireland €2,655 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.

The savings estimates also assume that you consider €1,230 to be your normal monthly payment to Bank of Ireland. This means that your mortgage (whether with Bank of Ireland or with one of the above lenders) will be paid off in about 22 years. If you want estimates based on a monthly repayment to Bank of Ireland of €1,118, let me know.

If Haven allow you to take out a mortgage of €250k, you would be eligible for €5,000 (as opposed to €2,000) cashback, but this seems unlikely.

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 240.9k/400k = 60.2%. A slightly higher property valuation (€402k) 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.

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 probably apply simultaneously to two or more lenders for approval in principle (AIP).

I’ve been looking at Avant 20 year fixed and the ‘One Mortgage, lifetime’ fixed, would be great if you could run the exact numbers on those please.

You cannot fix with Avant for 20 years (unless you shorten your mortgage term to 20 years). With Avant's One Mortgage, you can only fix for the full length of your mortgage – approximately 22 years in your case. The estimate for this scenario is given above.