Going through Doddl-What lenders have you started the switching process with?
@CD1234Current lender: Bank of Ireland
Outstanding mortgage balance: 177,292.51
Approximate value of your property: 200,000
The date you started your fixed-rate mortgage (month and year): Dec 2021
How many years you fixed for: 3
Your current mortgage interest rate: 3%
Your current monthly repayment (excluding any overpayments): €716.63
Your property's BER (Building Energy Rating) – estimated if necessary: C2
Cashback: 1% after 5 years (€1,800) in Dec 2026
I've given savings estimates for switching lenders just in case you are curious, but re-fixing with BOI is probably a better idea.My preference is to not switch but instead re-set the clock with a longer fixed term.
I've already received a Mortgage form of Authorisation from BOI which is ready to be signed electronically.
The rates offered that I am considering are 3/5 years @ 3% and 10 years @ 3.5%.
BOI have advised that no break fee applies today but that can change before the new terms would come into effect, even if I was to sign immediately/electronically.
I know it's difficult to give an estimation, but how significant would a break fee be if one was suddenly to come into effect?
@Ent319 That extra 0.5% (the difference between 3.2% and 2.7%) will cost you an extra €10k in interest (approximately) over 5 years. That will almost wipe out the value of the cashback (€12k), especially when you remember that you'll have to pay fees if you want to switch at the end of the 5 years. (The €400k versus €406.5k makes very little difference.)
And you might not even be able to switch again after 5 years – see here for a list of possible reasons.
Most cashback offers are terrible value over the medium to long term. (I'm not including AIB's and Haven's cashback offers in that, since their interest rates are good.)
@AndyaaCurrent lender: KBC
Outstanding mortgage balance (how much you still owe): 150,877.84
Approximate current value of your property: 550,000
The date you started your fixed-rate mortgage (month and year): April 2021
How many years you fixed for: 2 years
Your current mortgage interest rate: 2.25%
Your current monthly repayment (excluding any overpayments): 794.46
Your property's BER (Building Energy Rating): C2
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 (monetary amount) and when? No
Thank you Paul,@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.
Do you mean that they would initially only give you the post-increase green rate (2.6%)? Or did you mean that they wouldn't give you the green rate at all?Got my BER upgraded to B3 around the time of the EBS rate increase, had to lodge a compliant but got switched to 2.1% fixed rate
They originally refused the 2.1% and offered 2.6%, switching to the green was not an issue.Do you mean that they would initially only give you the post-increase green rate (2.6%)? Or did you mean that they wouldn't give you the green rate at all?
I made the complaint based on the fact that I had the paperwork ready to go at home and EBS knew my plan to upgrade the BER.What arguments did you use in your complaint?
@coxy123 Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Bank of Ireland. If it is higher than zero, please post it here when you receive it, including the date of the letter.
- Current lender: BOI
- Outstanding mortgage balance (how much you still owe): 70,471
- Approximate current value of your property: 450,000
- The date you started your fixed-rate mortgage (month and year): Feb. '22
- How many years you fixed for: 2 yrs.
- Your current mortgage interest rate: 2.9%
- Your current monthly repayment (excluding any over payments): 1,031
- 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 (monetary amount) and when? No.
Hi StebagDocusign arrived this afternoon, signed and submitted. Will update once re-fix locked in so others know how long that takes!
Sorry I never updated. That was a Friday, I didn't hear anything but I logged in to the BOI mortgage portal on the following Wednesday and my mortgage was showing on the new rate. Got a letter just this week confirming all in place.Hi Stebag
any update from BOI ? has your re-fix been completed.
@CalmoyvaneCurrent lender:
KBC
Outstanding mortgage balance (how much you still owe): 323,000
Approximate current value of your property: 395,000
The date you started your fixed-rate mortgage (month and year): June 2021
How many years you fixed for: 3 years
Your current mortgage interest rate: 2.35%
Your current monthly repayment (excluding any overpayments): €1223.42
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 (monetary amount) and when?: No.
...basically what I did was panic at all the talk of increasing rates and re-fixed on the 10 year rate as a safety net.
Finally got my BER assessment done yesterday and got confirmation this morning it will be a B3. So now I'll go down the route of discovering if recently re-fixing with BOI for 10 years will mean I have a break fee to contend with. My application with PTSB for their 5 year green mortgage is still in progress and I'd love to get on it. Maybe I'll get caught in my own safety net though, let's see!
...that's almost impossible to say, which is why you would need to check it with BOI periodically after you re-fix. But I would speculate that there is a reasonable chance that it will be modest or even zero.
Current lender: | PTSB Tracker ECB +2.68% | PTSB |
Outstanding mortgage balance (how much you still owe): | € 127,773.30 | € 128,835.14 |
Approximate current value of your property: | € 380,000.00 | € 380,000.00 |
The date you started your fixed-rate mortgage (month and year): | Tracker | Nov-21 |
How many years you fixed for: | Tracker | 3 |
Your current mortgage interest rate: | 4.68 | 2.95 |
Your current monthly repayment (excluding any overpayments): | € 847.03 | € 518.76 |
Your property's BER | D1 | D1 |
Are you due to get extra cashback from your current lender in the future, | no | no |
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?