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

[abc789]

@abc789 Because you are on a variable-rate mortgage, you do not have to pay a break fee.

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €13,300 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 €12,200 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 EBS's 4-year green fixed rate (2.1% with no cashback) will save you about €12,020 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 Haven's 7-year fixed rate (2.65% with €2,000 cashback) will save you about €8,460 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.55% with no cashback) will save you about €7,180 over the next 4 years
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €2,000 cashback) will save you about €6,960 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.75% with no cashback) will save you about €5,680 over the next 4 years
  
  
• Switching immediately to Avant Money's 7-year fixed rate (3.05% with no cashback) will save you about €3,420 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 save you about €3,420 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 1 year and 1 month 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 save you about €20 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • The monthly repayment would be €1,200
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 3.55% fixed rate with no cashback) will leave you worse off by about €400 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 €1,435
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 3.65% fixed rate with no cashback) will leave you worse off by about €1,120 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 19 years)
  • The monthly repayment would be €1,215

The above Avant rates include their rate increases announced on 12 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. (That is not a major consideration if you decide to re-fix with EBS, since re-fixing with your current lender is usually quick to do.)

These savings estimates use for comparison the scenario of staying on the variable rate with EBS and assume that that rate doesn't change between now and August 2026 (which is very unlikely). 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) is currently 200.0k/320.0k = 62.5%. A slightly higher property valuation (€334k) and/or a few more monthly mortgage payments and/or a lump sum overpayment would get you into a lower LTV bracket (< 60%), and you would be eligible for lower rates from Avant (e.g., 2.95% fixed for 7 years). But that is probably not a good 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 apply simultaneously to two or more lenders for approval in principle (AIP).

Hi Paul,

Many thanks for that advice, we've decided to fix with EBS - our current lender and then review it in time. By the time I'd switch to Haven or some of the other banks I'm sure they will have increased their fixed rates.

 

[dwyershane]

@dwyershane 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. If it is higher than zero, 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 Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €6,820 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 €5,600 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 Ulster Bank's 4-year green fixed rate (2.35% with no cashback) will save you about €3,420 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 interest rate won't change for 4 years but 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 right now, the best rate you would be able to switch to today is 2.8%
  • 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 (2.45% with no cashback) will save you about €2,600 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 Haven's 7-year fixed rate (2.65% with €2,000 cashback) will save you about €1,500 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to AIB's 4-year fixed rate (2.75% with €2,000 cashback) will save you about €680 over the next 4 years
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.55% with no cashback) will save you about €280 over the next 4 years
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €2,000 cashback) will leave you worse off by about €140 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.75% with no cashback) will leave you worse off by about €1,360 over the next 4 years
  
  
• Switching immediately to Ulster Bank's 7- or 10-year fixed rate (2.95% with no cashback) will leave you worse off by about €1,520 over the next 4 years – but with the 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
  
  
• Switching immediately to AIB's 7-year fixed rate (3.05% with €2,000 cashback) will leave you worse off by about €1,800 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to AIB's 10-year fixed rate (3.2% with €2,000 cashback) will leave you worse off by about €3,040 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's 7-year fixed rate (3.05% with no cashback) will leave you worse off by about €3,840 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 €3,840 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 4 years and 1 month 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 20-year fixed rate (3.15% with no cashback) will leave you worse off by about €4,660 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 4 years and 2 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 €7,560 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 €8,820 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 21 years)

The above Avant rates include their rate increases announced on 12 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. (That is not a major consideration if you decide to re-fix with Ulster Bank, since re-fixing with your current lender is usually quick to do.)

These savings estimates use for comparison the scenario of switching to a 2.8% rate with Permanent TSB (who will probably own your mortgage) when the current fixed rate ends. And that's assuming that Permanent TSB are even offering a 2.8% rate in April 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 (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 the listed rates. Your LTV estimate is 217.0k/310.0k = 70.0%. If you get a valuation of less than €310k, 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.

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).

thanks so much Paul F I appreciate the reply.

one question on the Ulster bank 4 year green fixed - are Ulster bank currently allowing existing customers to move to this? i did get a notification to say that from start of august they were not offering any new mortgage services to customers unless its a topup application?

 

[Paul F]

thanks so much Paul F I appreciate the reply.

one question on the Ulster bank 4 year green fixed - are Ulster bank currently allowing existing customers to move to this? i did get a notification to say that from start of august they were not offering any new mortgage services to customers unless its a topup application?

@dwyershane Can you paste the full text of that notification here? Or take a photo/screenshot of it and attach it (or send it to me in a private message).

These two questions ("I want to change my mortgage interest rate; can I continue to do this?" and "What happens if my current fixed rate expires?") in Ulster Bank's FAQ seem to make it clear that existing mortgage customers can still switch to another rate.

 

[dwyershane]

@dwyershane Can you paste the full text of that notification here? Or take a photo/screenshot of it and attach it (or send it to me in a private message).

These two questions ("I want to change my mortgage interest rate; can I continue to do this?" and "What happens if my current fixed rate expires?") in Ulster Bank's FAQ seem to make it clear that existing mortgage customers can still switch to another rate.

Hey Paul, wording from the manage my mortgage portal below

Important Customer Update​

From 10th June 2022 Ulster Bank is no longer accepting new Mortgage applications with the following exceptions.

Existing Mortgage customers can continue to apply for a Top Up Mortgage until the 26th August 2022.

Existing Tracker & Offset Mortgage customers can continue to apply for a Mortgage loan offer to move property or a Top Up Mortgage until further notice

Makes it sound like you cant, but then your link would seem to be the opposite. I think i will give them a call and see what the status is.
Thanks

 

[Sir Bob Paisley]

@Sir Bob Paisley Your break fee should be zero at the moment – but 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.

The below estimates assume that your current monthly payment to Bank of Ireland is €1,603. This is in order to simulate a mortgage with a term of 15 years.

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €8,460 over the next 4 years
  • The monthly repayment would be €1,525
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €7,620 over the next 4 years
  • The monthly repayment would be €1,536
  • 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 €2,000 cashback) will save you about €2,900 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • The monthly repayment would be €1,597
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €2,580 over the next 4 years
  • The monthly repayment would be €1,575
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €2,000 cashback) will save you about €1,180 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • The monthly repayment would be €1,620
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will save you about €860 over the next 4 years
  • The monthly repayment would be €1,597
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% with no cashback) will leave you worse off by about €660 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • The monthly repayment would be €1,637 (and you would need to instruct Bank of Ireland that you want to reduce the term to 15 years)
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will leave you worse off by about €1,280 over the next 4 years – but with the longer security of 10 or 15 years on a fixed rate
  • The monthly repayment would be €1,625
  • 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 €1,720 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • The monthly repayment would be €1,631
  
  
• Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% with no cashback) will leave you worse off by about €3,420 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).
  • The monthly repayment would be €1,671 (and you would need to instruct Bank of Ireland that you want to reduce the term to 15 years)
  
  
• Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €5,620 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • The monthly repayment would be €1,683
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 3.4% fixed rate with no cashback) will leave you worse off by about €5,620 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (15 years)
  • The monthly repayment would be €1,683

The above Avant rates include their rate increases announced on 12 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. (That is not a major consideration if you decide to re-fix with Bank of Ireland, since re-fixing with your current lender is usually quick to do.)

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 July 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.

I have assumed that you will be getting the 1% cashback from Bank of Ireland next month regardless of whether you re-fix with them or switch to another lender (since switching to another lender takes longer than a month).

You should call Bank of Ireland 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.

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).

Hi,

I called BOI and said that I said that I was shopping around for a better rate.

They offered me 3 or 5 years fixed at 3% or 10 years fixed at 3.3%.

I said thanks but no thanks

Many thanks for your insightful analysis

 

[Paul F]

Important Customer Update​

From 10th June 2022 Ulster Bank is no longer accepting new Mortgage applications with the following exceptions.

Existing Mortgage customers can continue to apply for a Top Up Mortgage until the 26th August 2022.

Existing Tracker & Offset Mortgage customers can continue to apply for a Mortgage loan offer to move property or a Top Up Mortgage until further notice

Makes it sound like you cant, but then your link would seem to be the opposite. I think i will give them a call and see what the status is.
Thanks

There are people on this forum that have re-fixed with Ulster Bank very recently. I'd say it is very likely that you still can.

 

[Cloudd]

• Current lender: PTSB
• Outstanding mortgage balance (how much you still owe): €486,031
• Approximate current value of your property: €650,000 (bought 15 months ago for 621k, rough estimate, could be more as lesser houses have gone in the area for mad money lately closer to 700k plus)
• The date you started your fixed-rate mortgage (month and year): June 2021 (Current product ends 31-06-2024)
• How many years you fixed for: 3 years
• Your current mortgage interest rate: 2.5%
• Your current monthly repayment (excluding any overpayments): €1,880
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary: A2
• 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?: YES-2% monthly

Feedback much appreciated Paul.

I spoke to my broker this morning. He felt that any numbers with the 3 pillar banks re rates will be upped by the time the 7-9 week process closes.

AVANTS facility to overpay 10% each year at no extra cost is quite interesting. Makes the 7 or 10 year consideration more palatable.

 

[Paul F]

• Current lender: PTSB
• Outstanding mortgage balance (how much you still owe): €486,031
• Approximate current value of your property: €650,000 (bought 15 months ago for 621k, rough estimate, could be more as lesser houses have gone in the area for mad money lately closer to 700k plus)
• The date you started your fixed-rate mortgage (month and year): June 2021 (Current product ends 31-06-2024)
• How many years you fixed for: 3 years
• Your current mortgage interest rate: 2.5%
• Your current monthly repayment (excluding any overpayments): €1,880
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary: A2
• 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?: YES-2% monthly

Feedback much appreciated Paul.

I spoke to my broker this morning. He felt that any numbers with the 3 pillar banks re rates will be upped by the time the 7-9 week process closes.

AVANTS facility to overpay 10% each year at no extra cost is quite interesting. Makes the 7 or 10 year consideration more palatable.

@Cloudd 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 €11,460 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 €8,640 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 Bank of Ireland's 7-year green fixed rate (2.25% with no cashback) will save you about €4,740 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • Note that Bank of Ireland 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 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 Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €2,180 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Bank of Ireland's 10-year green fixed rate (3.0% with €9,720 cashback) will save you about €260 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • The same warnings as above regarding higher Bank of Ireland rates in the future apply
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €5,000 cashback) will leave you worse off by about €1,620 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.65% with no cashback) will leave you worse off by about €2,860 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 €1,958
  
  
• Switching immediately to Permanent TSB's 5-year green fixed rate (2.8% with 2% monthly cashback) will leave you worse off by about €2,700 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 (2.85% with no cashback) will leave you worse off by about €6,640 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 €2,010
  
  
• Switching immediately to Permanent TSB's 7-year fixed rate (3.0% with 2% monthly cashback) will leave you worse off by about €6,500 over the next 4 years – but with the longer security of 7 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 Avant Money's 7-year fixed rate (3.15% with no cashback) will leave you worse off by about €12,340 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 €2,089
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (3.15% with no cashback) will leave you worse off by about €12,360 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 3.15%) will fall to 3.05% in 3 years and 3 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.
  • And your interest rate will fall again in the future
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (3.25% with no cashback) will leave you worse off by about €14,280 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 3.25%) will fall to 3.15% in 3 years and 3 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.
  • And your interest rate will fall again in the future
  
  
• Switching immediately to Finance Ireland's 25-year fixed rate (3.4% with no cashback) will leave you worse off by about €17,140 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 3.4%) will fall to 3.3% in 3 years and 4 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.
  • And your interest rate will fall again in the future
  
  
• Switching immediately to Avant Money's 10-year fixed rate (3.6% with no cashback) will leave you worse off by about €20,940 over the next 4 years – but with the 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 €2,210
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 3.75% fixed rate with no cashback) will leave you worse off by about €23,800 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 30 years to be eligible for this rate
  • The monthly repayment would be €2,251

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. (That is not a major consideration if you decide to re-fix with Permanent TSB, since re-fixing with your current lender is usually quick to do.)

These savings estimates use for comparison the scenario of switching to a 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 June 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.

You should call Permanent TSB 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.

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) is currently 486.0k/650.0k = 74.8%. A higher property valuation (€695k) and/or a few more monthly mortgage payments and/or a lump sum 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. (Avant's rates would be 0.1% lower than the rates quoted above if you can get into the < 70% LTV bracket. That might not sound like much but it would save you about €3,300 in interest over 7 years.)

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 €14,460 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 apply simultaneously to two or more lenders for approval in principle (AIP).

 

[redwellies]

I just wanted to pop on here to thank you for the advice you gave me regarding switching. Our switch took slightly longer than it should have as I foolishly applied for a switcher loan for a slightly longer term than our original loan. This meant I had to extend our life assurance policy with a less than efficient BofI Life team.
We managed to switch to a 5 year green mortgage with AIB at 2.1% from a 3.35% fixed rate with BofI. Our switch coincided with the end of our fixed term with BofI but the delays meant we had a few weeks on their variable rate of 4.75%
We will be saving a lot over the course of the next 5 years as a result.
Thanks so much for all of your help and advice.

 

[Paul F]

I just wanted to pop on here to thank you for the advice you gave me regarding switching. Our switch took slightly longer than it should have as I foolishly applied for a switcher loan for a slightly longer term than our original loan. This meant I had to extend our life assurance policy with a less than efficient BofI Life team.
We managed to switch to a 5 year green mortgage with AIB at 2.1% from a 3.35% fixed rate with BofI. Our switch coincided with the end of our fixed term with BofI but the delays meant we had a few weeks on their variable rate of 4.75%
We will be saving a lot over the course of the next 5 years as a result.
Thanks so much for all of your help and advice.

@redwellies I'm delighted you got over the line! We can see that my first replies to you were in late April, so it has taken you almost 4 months to switch But you will be saving about €1,600 per year versus re-fixing with Bank of Ireland. If you are a high-rate taxpayer you would need a payrise of about €3,200 to have an extra €1,600 in your account at the end of the year!

 

[redwellies]

To be honest, I didn’t actually start the ball rolling until late June so it wasn’t as slow as that. It took about 3 weeks to get the life assurance policy sorted though.
We also get €2000 from AIB for switching.
Thanks again for all your help!

 

[Paul F]

We can see that my first replies to you were in late April, so it has taken you almost 4 months to switch

To be honest, I didn’t actually start the ball rolling until late June so it wasn’t as slow as that. It took about 3 weeks to get the life assurance policy sorted though.

In that case it was less than two months. That's pretty fast!

 

[redwellies]

In that case it was less than two months. That's pretty fast!

AIB have a really good app for mortgage applications which was really user friendly. I could upload documents quickly and easily with minimal delays. Aside from the delay with the life assurance it was a pretty easy process.

 

[Paul F]

AIB have a really good app for mortgage applications which was really user friendly. I could upload documents quickly and easily with minimal delays. Aside from the delay with the life assurance it was a pretty easy process.

Yes, the "My Mortgage" AIB website (or mobile app) is for mortgage applications (including for switcher mortgages) and it is excellent.

Last year and earlier this year, switching to AIB was taking a long time for a lot of people but based on your experience it sounds like they might be faster now.

 

[DaveInDublin]

@DaveInDublin Because you are on a variable-rate mortgage, you do not have to pay a break fee.

• Switching immediately to Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €9,140 over the next 4 years
  
  
• Switching immediately to Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €9,120 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 Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €7,380 over the next 4 years
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will save you about €6,500 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to AIB's 5-year fixed rate (2.45% with no cashback) will save you about €6,060 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 Avant Money's 10-year fixed rate (2.4% with no cashback) will save you about €5,160 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 save you about €5,160 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 7-year fixed rate (3.05% with no cashback) will save you about €740 over the next 4 years – but with the even-longer security of 7 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 AIB's 10-year fixed rate (3.2% with no cashback) will leave you worse off by about €600 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 staying on the variable rate with AIB and assume that that rate doesn't change between now and June 2026 (which is unlikely). 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 some of the listed rates. Your LTV estimate is 235.0k/400.0k = 58.8%. If you get a valuation of less than €392k, 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.

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.

Any idea what your Building Energy Rating (BER) is? Check here to see if your property already has a BER cert.

Hi Paul,

Many thanks for your number crunching on this, unfortunately time ran away from us and before we could fully complete the paperwork and switch to Avant, the rates jumped up. We are now looking at our current lender (AIB), who have a 2.15% Green rate which seems to be the easiest and fastest, and requires a BER and valuation. Can you confirm that is our best option? It appears to leave us better off by about 8k over the 5 years if my napkin maths is correct.

Thanks again,

Dave (InDublin)

 

[Paul F]

Many thanks for your number crunching on this, unfortunately time ran away from us and before we could fully complete the paperwork and switch to Avant, the rates jumped up. We are now looking at our current lender (AIB), who have a 2.15% Green rate which seems to be the easiest and fastest, and requires a BER and valuation. Can you confirm that is our best option? It appears to leave us better off by about 8k over the 5 years if my napkin maths is correct.

@DaveInDublin I have only included savings estimates for AIB's rates below. If you want estimates for other lenders' rates, let me know.

• Switching immediately to AIB's 5-year green fixed rate (2.15% with no cashback) will save you about €10,450 over the next 5 years
  • And it is quite likely that you will be able to make unlimited overpayments without penalty for the foreseeable future (see this thread)
  • But you will need a BER cert with a rating of B3 or better to be eligible for this rate. That will take a little time to organise, and there is no guarantee that you will get the rating you need. (I have assumed a cost of €200 for the BER assessment.)
  
  
• Switching immediately to AIB's 5-year fixed rate (2.45% with no cashback) will save you about €7,450 over the next 5 years
  
  
• Switching immediately to AIB's 7-year fixed rate (3.05% with no cashback) will save you about €950 over the next 5 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to AIB's 10-year fixed rate (3.2% with no cashback) will leave you worse off by about €700 over the next 5 years – but with the longer security of 10 years on a fixed rate

These savings estimates use for comparison the scenario of staying on the variable rate with AIB and assume that that rate doesn't change between now and August 2027 (which is very unlikely).

It is possible that rate increases are only a few weeks away, so time is not on your side. The time available to you will be even shorter if you decide to organise a BER assessment, so if you decide to go that route, check with the assessor how quickly they can do everything, including uploading the cert to the SEAI website.

It appears from the rate that you are currently on (3.15% variable) that AIB thinks that your loan-to-value (LTV) ratio is over 80%. Is this correct? If so, you will need to organise a valuation with AIB in order to be eligible for the above rates, and that will take a few days.

 

[Dublin85]

@redwellies I'm delighted you got over the line! We can see that my first replies to you were in late April, so it has taken you almost 4 months to switch But you will be saving about €1,600 per year versus re-fixing with Bank of Ireland. If you are a high-rate taxpayer you would need a payrise of about €3,200 to have an extra €1,600 in your account at the end of the year!

just wanted to say thanks also. just got switched from ics to aib 5 year Green fixed. it will save us a nice bit of money. your information was a big factor in making the switch, so thanks

 

[Lecoqdiesel]

Current lender: BOI
Outstanding mortgage balance: €230,892
Approximate value of your property: €525,000
The date you started your fixed-rate… December 19th 2020
How many years you fixed for: 5 years
Your current mortgage interest rate: 3.00%
Your current monthly repayment: €1065
Your property's BER: B3
Are you due to get extra cashback from your current lender in the future: 2,400
Left on mortgage: 28 years

Hi. Been reading some of the posts on here and some great work helping others.

Currently almost 2 years into 5 year fixed. And with the current environment, just trying to figure out best approach for the future.

Options I've considered is just riding out the 3 more years, taking the 2,400 and trying to time moving to lowest fixed rate then, hoping it's not hugely higher.

Refixing with BOI on their green mortgage as the house is B3. That would be 2.7% for 5 years. Probably forfeiting the 2,400 due at end of current term. Not sure on that actually.

Or moving to another bank with the lowest rate now. Understanding I'd definitely lose the 2,400, need to pay solicitor fees, deal with paper work or pay broker, potential for rates to increase between now and actually making the switch. And the other aspect of the potential break fee. Which I'd appreciate if someone could help calculate.

Any insight into what could be the best strategy here would be most welcome. Thank you.

 

[Paul F]

Outstanding mortgage balance: €230,892
Your current monthly repayment: €1065
Left on mortgage: 28 years

@Lecoqdiesel Something doesn't add up here. The balance and monthly repayment imply that there are about 26 years left on your mortgage, not 28.

Is one of the pieces of info wrong? Does the €1,065 figure include a regular monthly overpayment?

 

[Lecoqdiesel]

@Lecoqdiesel Something doesn't add up here. The balance and monthly repayment imply that there are about 26 years left on your mortgage, not 28.

Is one of the pieces of info wrong? Does the €1,065 figure include a regular monthly overpayment?

Hi. Sorry, you are correct. I adjusted my overpayment twice but forgot to revert back to original when providing here.

Correct figure is 1,011.85. Drew down in December 2020. Statement says mortgage end date is December 2050.