Switch to Haven for €5k cashback and then jump to their low green rate?

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Paul F

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Hi,

For people who meet both of the following criteria:
  • outstanding mortgage balance greater than €250k and a BER of B3 or higher
could they:
  • switch from another lender to a Haven fixed rate and get the €5,000 cashback, and then (a few months later)
  • switch to Haven's green mortgage (2.15% fixed for 4 years)?
I can't see anything in the above links or on the switcher info page which appears to prevent this.

Has anybody here raised this possibility before? Or (like Avant) do Haven not let you break out of a fixed rate to switch to another fixed rate?

Edit: Haven lowered their green mortgage rate to 2.0% on 8 February 2022.
 
Last edited:
Paul F said:
Hi,

For people who meet both of the following criteria:
  • outstanding mortgage balance greater than €250k and a BER of B3 or higher
could they:
  • switch from another lender to a Haven fixed rate and get the €5,000 cashback, and then (a few months later)
  • switch to Haven's green mortgage (2.15% fixed for 4 years)?
I can't see anything in the above links or on the switcher info page which appears to prevent this.

Has anybody here raised this possibility before? Or (like Avant) do Haven not let you break out of a fixed rate to switch to another fixed rate?
Click to expand...

For existing Haven Mortgage Customers:​

  • You can leave your current Haven Fixed Rate term early to get the Haven Green 4 Year Fixed Rate Mortgage rate if there is at least four years remaining on your current Haven Mortgage. If you are on an existing Haven Fixed Rate an Early Breakage Charge may apply.
  • You can leave your current Haven Variable Rate to get the Haven Green 4 Year Fixed Rate Mortgage if there is at least four years remaining on your current Haven Mortgage.
  • You can get additional information and Cost of Credit examples from your Intermediary.
 
There doesn't seem to be anything explicitly preventing it but also, I presume it would be at Haven's discretion to allow the internal switch.

There is a €2k switcher fee with the green rate and a €5k switcher fee with the other rates. So in order to get the additional €3k, you pay an additional 0.4% interest or €1k/yr on your €250k mortgage.

On the assumption that a switchers circumstances do not change and that they would be eligible to switch away in 12 months to another lender, then Haven would have to choose to let you go or switch you to the Green rate. Reminding them of this fact a few months into your new mortgage might encourage them to move you onto the Green rate early meaning you are not paying the 0.4% for too long and would benefit from most of the €5k bonus

The risk with this approach, as always, is that your circumstances change and you can't switch away or switch to the green rate. At least this risk is softened by the €5k fee meaning the 2.55% is not the worst when combined with the switcher bonus
 
What rates do they offer when the fixed rate is up. Can new and existing get the same rates.
 
Can anyone work out a break fee. 279k.
If i Switch this month to havens 5 year fixed at 2.55% for the 5k cashback and then within a month apply to switch to their green 4 year fixed rate 2.15%.
Thanks.

Calculation of an Early Breakage Charge:
The formula to calculate the Early Breakage Charge is:
(A) X (U) X (D%)
Definition of terms used in this formula:
Description
(A) Amount This is the amount being repaid early or the amount being
converted to a variable rate or another Fixed Rate term.
Original Market Rate This is the wholesale market interest rate as of 5pm the day
previous to the rate being fixed.
Market Rate for the
Fixed Rate period
remaining
This is the wholesale market interest rate as of 5pm the
previous day to the request to calculate the Early Breakage
Charge.
(U) Remaining term
in years
Remaining number of days left before the Fixed Rate is due to
expire, divided by 365 and rounded up to a whole number.
(D%) Difference in
Market Rate
The difference between the original Market Rate and the
Market Rate for the Fixed Rate period remaining.
 
Interest% said:
Can anyone work out a break fee. 279k.
If i Switch this month to havens 5 year fixed at 2.55% for the 5k cashback and then within a month apply to switch to their green 4 year fixed rate 2.15%.
Thanks.
Click to expand...

That's impossible to calculate. No one knows what the prevailing market rate will be in the future.
 
Interest% said:
Can you caculate it if its all done today at todays rates.
Click to expand...
That's easy, you don't need me to calculate that one. Look at D in your formula. What you're asking is the difference between today's rate and today's rate. In other words zero.

But be careful. I don't know how haven pay out their cashback but it's unlikely to be in your account the same day you drawdown your mortgage. I've no idea if refixing before you receive your cashback would void it. I doubt it.

At one end there's a risk that they don't pay out at the other end is the rush that rates move in such a way to make breaking uneconomical.
 
@Interest% The strategy I outlined in the first post of this thread may or may not work, and I am certainly not recommending it to anyone. As @_OkGo_ points out, Haven may refuse to let you switch to the green rate in a few months' time, and then you'd be stuck on the 2.55% rate. Now, that wouldn't be the end of the world given that you'd have got €5k cashback.

If you're going to try it, I'd say fix initially with Haven for 5 years at 2.55%
 
Yes I have that, its the uncertainty of not knowing can you switch after the switch. Im going ring em.
 
You can ring and ask, they might even say yes but ultimately its still there decision when you try to do it so I wouldn't be confident trying it. Anything they say on the phone is in no way binding.

They explicitly say the €5k is not available on the 4 year green when switching so I would be surprised if they would allow you sidestep that within a month by switching between fixed products. Maybe after 12 months when you are able to switch away to another provider but waiting this long runs the risk of a break fee which. The extra €3k in switching bonus would be wiped out by the extra €1.1k in interest plus the potential of a break fee. And because you would have a large balance and 4 years remaining, even a small change in market rates would result in a significant break fee. Eg. €280k x 4yr x 0.1% = €1.1k

@Interest% , you have dropped bits and pieces of your situation across multiple threads so it is hard to give you a good steer in the right direction. I think you should start a new thread with all your details to help you choose the best product for you
 
_OkGo_ said:
You can ring and ask, they might even say yes but ultimately its still there decision when you try to do it so I wouldn't be confident trying it. Anything they say on the phone is in no way binding.

They explicitly say the €5k is not available on the 4 year green when switching so I would be surprised if they would allow you sidestep that within a month by switching between fixed products. Maybe after 12 months when you are able to switch away to another provider but waiting this long runs the risk of a break fee which. The extra €3k in switching bonus would be wiped out by the extra €1.1k in interest plus the potential of a break fee. And because you would have a large balance and 4 years remaining, even a small change in market rates would result in a significant break fee. Eg. €280k x 4yr x 0.1% = €1.1k

@Interest% , you have dropped bits and pieces of your situation across multiple threads so it is hard to give you a good steer in the right direction. I think you should start a new thread with all your details to help you choose the best product for you
Click to expand...
Thanks for all the help.
Sorry about the info scattered here and there. I will do thanks. Okgo
 
As a justification for this - move to the Haven fixed rate. Spend the cashback on solar panels and then move to the green rate with your new improved BER.
 
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