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

[Paul F]

@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.)

 

[PolkaDotCabbage]

What lenders have you started the switching process with?

Going through Doddl-
Finance Ireland was looking good there for a while but their rates hike wiped out any benefits.
Looking like Avant now. The decent rates that prompted me to start the process are now gone but if things keep heading in the same direction, they'll be bad when my fixed term ends.
So I think we'll lock in a rate for as low as possible for the long term now and at least have the peace of mind of knowing exactly what we'll be paying in the long term. We can plan around that.

 

[Paul F]

Current 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

@CD1234

• Switching immediately to Permanent TSB's 4-year fixed rate (2.35% with 2% monthly cashback) will save you about €3,080 over the next 4 years
  • Note that Permanent TSB discriminate between new and existing customers, i.e., their best rates are not available to existing customers
  • For example, if you were an existing Permanent TSB customer right now, the best rate you would be able to switch to today is 3.0%
  • So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).
  
  
• Switching immediately to Permanent TSB's 5- or 7-year fixed rate (3.0% with €3,545 initial cashback and 2% monthly cashback) will save you about €2,180 over the next 4 years – but with the longer security of 5 or 7 years on a fixed rate
  • The same warnings as above regarding higher Permanent TSB rates in the future apply
  
  
• Switching immediately to AIB's 5-year fixed rate (3.05% with €2,000 cashback) will leave you worse off by about €120 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% with no cashback) will leave you worse off by about €320 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 Haven's 7-year fixed rate (3.15% with €2,000 cashback) will leave you worse off by about €820 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Haven's 10-year fixed rate (3.35% with €2,000 cashback) will leave you worse off by about €2,220 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 Bank of Ireland's 10-year fixed rate (3.5% with no cashback) will leave you worse off by about €3,960 over the next 4 years – but with the longer security of 10 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  
  
• Switching immediately to AIB's 10-year fixed rate (3.8% with €2,000 cashback) will leave you worse off by about €5,360 over the next 4 years – but with the longer security of 10 years on a fixed rate

The above AIB and Haven rates include their rate increases of 14 October 2022. Permanent TSB and Bank of Ireland are expected to increase their rates soon.

These savings estimates use for comparison the scenario of switching to a 2.9% rate with Bank of Ireland when the current fixed rate ends. And that's assuming that Bank of Ireland are even offering a 2.9% rate in December 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.

The estimates also assume that your loan-to-value ratio (LTV) really is below 90% so that you are eligible for the listed rates. Your LTV estimate is 177.3k/200.0k = 88.6%. If you decide to switch lenders and you get a valuation of less than €197k, you will need to make a few more monthly mortgage payments and/or a lump sum overpayment to get the LTV below 90%.

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. But you can probably start the switching process now (if you decide to) because you will have been with BOI for 12 months by the time you complete the switch.

Bear in mind that the interest rates of some lenders 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).

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?

I've given savings estimates for switching lenders just in case you are curious, but re-fixing with BOI is probably a better idea.

The chances of there being a break fee are almost zero in your case.

BOI are expected to increase their rates soon, possibly even tomorrow, so act quickly.

As for whether to fix or 5 years or 10 years, if you fix for 10 years and you move home in the next 5 years or so you could face a very large break fee.

 

[Andyaa]

Current 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

KBC have confirmed there's no break fee.
I think my best option is to stick with KBC 3 Year 2.25% as if i was to move to PTSB 4 year fixed 2.05% (2% cash back) my repayments would be less but the overall cost to switch, solicitor fee etc. would not make it cost effective long term.

I would like to know what your advise is @Paul F

Thanks in advance.

 

[Ent319]

@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.)

If you could help me understand this a bit better I'd appreciate it.

Let's assume flat costs of €1500 to switch mortgage including solicitor fees and valuation. To make a like-for-like comparison this would have to be factored into a switch for both options (I think?) so the €1500 would cancel the other out and can be disregarded.

So to compare the choice would be:

Option A: €400,000 @ 3.2% for five years with an additional 1% cashback on year 5 applied to reduce the mortgage principal
vs.
Option B: €408,000 @ 2.7% for five years,

Assuming a 30 year overall term, and using the amoritisation calculator here, the remaining balance on Option A after five years would be €353,000 and Option B would be €360,700.

€360,700 - €353000 = €7,700 difference in principal

Option A would have paid €60,700 interest and €43100 principal over the five year term. Total payment = €103800

Option B would have paid €52000 interest and €47300 principal over the five year term. Total payment = €99300

€103800 - €99300 = €4,500

€7,700 - €4,500 = €3200

So assuming a switch had to be made, under the cashback option you'd be approx €3,200 better off – unless I'm mistaken? The math obviously isn't as good if the 2.7% choice was available by staying with an existing provider as there'd be no solicitors fees / evaluation.

That €3,200 is then saving you (€3,200 * average interest rate for remainder of mortgage ^ 25) - €3,200. However, you're stuck with another cashback lender and the switching train would have to begin again after a few years, incurring another €1500 in fees.

Do I understand this right?

 

[Paul F]

Current 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

@Andyaa

• Switching immediately to Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €3,840 over the next 4 years
  • Note that Permanent TSB discriminate between new and existing customers, i.e., their best rates are not available to existing customers
  • For example, if you were an existing Permanent TSB customer right now, the best rate you would be able to switch to today is 3.0%
  • So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).
  
  
• Switching immediately to KBC's 5-year fixed rate (2.4% with no cashback) will save you about €2,700 over the next 4 years. And it is very simple to do (no bank statements, salary cert or solicitor, etc., needed). Be aware that it is currently taking KBC a long time to process these 'break and re-fix' requests, and they might increase their interest rates before they process yours – see this thread. So if you go this route you might want to simultaneously start the process of switching to another lender (and you can abandon that switch if your re-fix with KBC happens at a satisfactory interest rate).
  • Note that if you decide to do this, your interest rate won't change for 5 years but 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 right now, the best rate you would be able to switch to today is 3.0%
  • 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 KBC's 3-year fixed rate (2.25% with no cashback) will save you about €2,540 over the next three years – but with the shorter security of only 3 years on this rate.
  
  
• Switching immediately to Permanent TSB's 5- or 7-year fixed rate (3.0% with €3,017 initial cashback and 2% monthly cashback) will save you about €1,540 over the next 4 years – but with the longer security of 5 or 7 years on a fixed rate
  • The same warnings as above regarding higher Permanent TSB rates in the future apply
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €1,080 over the next 4 years
  
  
• Switching immediately to AIB's 5-year fixed rate (2.85% with €2,000 cashback) will save you about €840 over the next 4 years
  
  
• Switching immediately to KBC's 10-year fixed rate (2.85% with no cashback) will save you about €140 over the next 4 years – but with the longer security of 10 years on a fixed rate. And it is very simple to do (no bank statements, salary cert or solicitor, etc., needed). Be aware that it is currently taking KBC a long time to process these 'break and re-fix' requests, and they might increase their interest rates before they process yours – see this thread. So if you go this route you might want to simultaneously start the process of switching to another lender (and you can abandon that switch if your re-fix with KBC happens at a satisfactory interest rate).
  • The same warnings as above regarding higher Bank of Ireland rates in the future apply
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will leave you worse off by about €60 over the next 4 years
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €1,760 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 (3.35% with €2,000 cashback) will leave you worse off by about €2,000 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 10-year fixed rate (3.6% with €2,000 cashback) will leave you worse off by about €3,440 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 3.4% fixed rate with no cashback) will leave you worse off by about €4,240 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 €1,071
  
  
• Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €4,320 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • The monthly repayment would be €880
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 3.5% fixed rate with no cashback) will leave you worse off by about €4,900 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 20 years)
  • The monthly repayment would be €888

The above AIB and Haven rates include their rate increases of 14 October 2022. Permanent TSB and Bank of Ireland are expected to increase their rates soon.

These savings estimates use for comparison the scenario of switching to a 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 3% 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 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).

Bear in mind that the interest rates of some lenders 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).

If you use a broker and they tell you that your mortgage balance is too low to switch, find another broker.

 

[tommyryan55]

@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.

Thank you Paul,

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

If EBS withhold the 1% Cashback I am due in 2027, I will go to the ombudsman.

 

[Paul F]

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

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?

 

[tommyryan55]

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?

They originally refused the 2.1% and offered 2.6%, switching to the green was not an issue.

 

[tommyryan55]

What arguments did you use in your complaint?

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.

I had been in contact with them via email in September.

Also I got AIP from BOI and told EBS I was going to BOI.

 

[coxy123]

• 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.

Thanks for reading my message and look forward to your reply @Paul F

 

[Paul F]

• 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.

@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.

• Switching immediately to Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €1,020 over the next 4 years
  • Note that Permanent TSB discriminate between new and existing customers, i.e., their best rates are not available to existing customers
  • For example, if you were an existing Permanent TSB customer right now, the best rate you would be able to switch to today is 3.0%
  • So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).
  
  
• Switching immediately to AIB's 5-year fixed rate (2.85% with €2,000 cashback) will save you about €760 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% with no cashback) will leave you worse off by about €100 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  

Permanent TSB and Bank of Ireland are expected to increase their rates soon.

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 February 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.

Bear in mind that the interest rates of some lenders 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 Bank of Ireland if they will guarantee today's rates for you if you start the process of re-fixing with them.

 

[Calmoyvane]

Current 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. Hi. Just looking for advice on whether to change or not before interest rates possibly go up. We can refix with KBC for 3 yrs at 2.35% or 5 yrs at 2.5% with no breakage fee. Thanks.

 

[albh4566]

Docusign arrived this afternoon, signed and submitted. Will update once re-fix locked in so others know how long that takes!

Hi Stebag
any update from BOI ? has your re-fix been completed.

 

[stebag]

Hi Stebag
any update from BOI ? has your re-fix been completed.

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.

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!

 

[Paul F]

Current 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.

@Calmoyvane

• Switching immediately to Permanent TSB's 5-year green fixed rate (2.35% with €6,460 initial cashback and 2% monthly cashback) will save you about €10,640 over the next 4 years
  • Note that Permanent TSB discriminate between new and existing customers, i.e., their best rates are not available to existing customers
  • For example, if you were an existing Permanent TSB customer right now, the best rate you would be able to switch to today is 2.8%
  • 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 Bank of Ireland's 4-year green fixed rate (1.9% with no cashback) will save you about €8,920 over the next 4 years
  • 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 Bank of Ireland's 7-year green fixed rate (2.25% with no cashback) will save you about €4,560 over the next 4 years – but with the longer security of 7 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 4-year green fixed rate (2.5% with €2,000 cashback) will save you about €3,420 over the next 4 years
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to KBC's 5-year fixed rate (2.45% with no cashback) will save you about €3,340 over the next 4 years. And it is very simple to do (no bank statements, salary cert or solicitor, etc., needed). Be aware that it is currently taking KBC a long time to process these 'break and re-fix' requests, and they might increase their interest rates before they process yours – see this thread. So if you go this route you might want to simultaneously start the process of switching to another lender (and you can abandon that switch if your re-fix with KBC happens at a satisfactory interest rate).
  • Note that if you decide to do this, your interest rate won't change for 5 years but 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 right now, the best rate you would be able to switch to today is 3.0%
  • 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).
  • Alternatively, you could switch to KBC's 3-year fixed rate (2.3% with no cashback)
  
  
• Switching immediately to Bank of Ireland's 10-year green fixed rate (3.0% with €6,460 cashback) will save you about €1,560 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 AIB's 5-year green fixed rate (2.65% with €2,000 cashback) will save you about €1,520 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)
  • For the same reason, it is unlikely that there will be a break fee if you break out of this fixed rate to move home within the next 5 years
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.65% with no cashback) will leave you worse off by about €520 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 €1,302
  
  
• Switching immediately to Haven's 7-year fixed rate (3.15% with €5,000 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
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.85% with no cashback) will leave you worse off by about €3,040 over the next 4 years
  • You would have to shorten your mortgage term to 30 years to be eligible for this rate
  • The monthly repayment would be €1,336
  
  
• Switching immediately to KBC's 10-year fixed rate (2.99% with no cashback) will leave you worse off by about €3,460 over the next 4 years – but with the longer security of 10 years on a fixed rate. And it is very simple to do (no bank statements, salary cert or solicitor, etc., needed). Be aware that it is currently taking KBC a long time to process these 'break and re-fix' requests, and they might increase their interest rates before they process yours – see this thread. So if you go this route you might want to simultaneously start the process of switching to another lender (and you can abandon that switch if your re-fix with KBC happens at a satisfactory interest 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 (3.35% with €5,000 cashback) will leave you worse off by about €4,340 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Avant Money's 7-year fixed rate (3.15% with no cashback) will leave you worse off by about €6,820 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 €1,388
  
  
• Switching immediately to Avant Money's 10-year fixed rate (3.6% with no cashback) will leave you worse off by about €12,520 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 €1,469
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 3.75% fixed rate with no cashback) will leave you worse off by about €14,440 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 €1,496

The above AIB and Haven rates include their rate increases of 14 October 2022. Permanent TSB and Bank of Ireland are expected to increase their rates soon.

These savings estimates use for comparison the scenario of switching to a 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 3% rate in June 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 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).

The estimates also assume that you get your loan-to-value ratio (LTV) below 80% in order to be eligible for some of the listed rates. Your LTV is currently 323.0k/395k = 81.8%. A slightly higher property valuation (€404k) and/or a lump sum overpayment will get you below 80%. But that is not a reason to delay the switch – i.e., you can start the switch immediately. (You are already eligible for the Bank of Ireland 4-year and 7-year rates, and all of the Haven rates, shown above, even with a property valuation of €395k.)

Bear in mind that the interest rates of some lenders 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).

 

[airgead07]

• Current lender: PTSB (Was Ulster Bank up to this week)
• Outstanding mortgage balance (how much you still owe): 215,984.61
• Approximate current value of your property: 450,000
• The date you started your fixed-rate mortgage (month and year): 30/06/2019
• How many years you fixed for: 4 yrs.
• Your current mortgage interest rate: 2.6%
• Your current monthly repayment (excluding any over payments): 1,331.62
• 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: No.

Many thanks

 

[Paudie2605]

• Current lender - AIB
• Outstanding mortgage balance (how much you still owe): €128,217.40 (Mortgage finished 21/04/2042)
• Approximate current value of your property €300,000
• The date you started your fixed-rate mortgage (month and year) 20/11/2019
• How many years you fixed for 5 years (Fixed terms ends 20/22/2024)
• Your current mortgage interest rate 2.85%
• Your current monthly repayment (excluding any overpayments) €716.55
• 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 (monetary amount) and when? No

Wondering whether to break fixed term and fix for longer or perhaps switch provider. Thanks

 

[stebag]

...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.

So I finally got BOI on the phone this morning and they quoted me a break penalty of €2629.00...

As my situation has changed since I re-fixed with BOI I'll go through my details again

Current lender: BOI
Outstanding mortgage balance: €287,416.99
Approximate current value of your property: €430,000
The date you started your fixed-rate mortgage: November 2022
How many years you fixed for: 10
Your current mortgage interest rate: 3.3%
Your current monthly repayment: €1327
Your property's BER: B3
Are you due to get extra cashback from your current lender in the future: €3100 in March 2026 (extra 1% in 5 years)


@Paul F - previously you said "Switching immediately to Permanent TSB's 5-year green fixed rate (2.35% with €5,749 initial cashback and 2% monthly cashback) will save you about €9,280 over the next 4 years"... so even if it costs me €2629.00 in penalty I am still possibly going to save approx. €6650 if I switch to the PTSB green rate?

Sounds like it is still worth doing to me...

 

[Tomred37]

Hi,
I'd really appreciate if someone could review my mortgage options. We have one house with 2 mortgages on it with PTSB, we were allowed keep our Tracker when we moved last year but its just variable rate now (ECB +2.68%) and its going up & up now and we want to know if its best to fix.

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