Mortgage - low fee for breaking fixed rate

Update: Avant funds issued. The process started in mid-January, so it took over four months in total. I almost gave up a number of times. It was incredibly frustrating, and so much harder than previous switches. I would recommend people considering it to go in with their eyes wide open and prepare for a long, painful experience.

Question: I have made 5 mortgage repayments since the amount was agreed with Avant. The amount outstanding on the mortgage is now less than the Avant loan. How is that calculated? Do they alter the loan amount to reflect how much is now owed, or do they stick to the original amount and refund me the difference?

Just realised that we have only 4 years left on the tracker but 14 years left on the overall mortgage. We moved a few years back and the only deal we could get was to keep the tracker for the first 10 years of a 20 year mortgage with Ulster Bank.

With the talk of interest rates only going up, I'm thinking is it best to move now and maybe fix the rate for the remaining 14 years?

The term is set before you draw it down. If it was a 30 year mortgage then the mortgage term only starts counting down from the day you draw down your new mortgage.

What will likely happen is your solicitor will transfer the full funds to your bank to pay off the balance of the mortgage. Any excess funds will either be transferred to you directly or indirectly via your solicitor.

It's very rare that a new mortgage will perfectly align with the existing mortgage. A refund is not unusual.

Got sorted with EBS, saving €3 a day in interest as now at the green mortgage. I was only 2 months into my 3 year term, handy that they don't charge for changing unlike the other banks!

If there was no break fee, that's down to changes in rates since you fixed and the rate you fixed at rather than it being an EBS standard policy.

We ditched our Avant switcher. It was definitely painful.

On 2.1% tracker with PTSB, with about 203k and 20 years left. Should we fix this at 3% for 7 years?

Also have a smaller amount of about 29k on a variable rate of 3.9%. It was fixed at 3% but we came out of it, with zero breakage fee, as we aim to have that cleared by March 2023 with overpayments.

Wasn't really up for the hassle of pulling together the documents for a switch but went through the process of initially increasing the monthly payments to pull the end date of the mortgage back from August 2042 to December 2036 followed by a switch from Variable 50<LTV<80 @ 2.85 to 5y fixed @2.35. Lots of opportunities to improve your position without the hassle of changing lender, just filled in a couple of forms and attached a valuation to the second one.

A longer fixed rate might have been nice but hoping to be able to just clear the balance at the end of the 5 years.

Switched from same bank to a lower rate fixed mortgage. Simple process, quick form emailed back to them.

Interest rates are rising soon so its a great time for anyone to nail a lower rate.

Hi,currently quite a way through the process with a broker to move to Avant. Had the house valued during the week, only other things left are to send latest bank statements and payslips (since the approval in principle).

Do you recall how long it took from having valuation done to completing the switch?

Doesn't seem like much left to do,but conscious I need to complete by 15th July to get the 7 year 1.95% rate.

Any suggestions on what to preempt either?

Deadskin,we are using DPF Moneysherpa and have found them good so far

I used AllFinancials in Raheny, local. Margaret there was brilliant.

No it's not great. We moved and carried our tracker rate across +1%, so it's 2.1%.

Rates are increasing by 0.25% in July, and possibly another 0.5% in September, that would bring me to 2.85%. Which is still lower than my bank's current fixed rates. But I'm worried that if I don't lock in a fixed rate soon, the bank will increase their fixed rates soon enough too. And ECB rates could increase again after September.

Spoke with EBS on Friday, in a fixed 3 year deal and half way through it. Asked about switching to a different rate. Advised no breakage fee...i never clarified though, would it be possible to change to a different provider or is the no breakage fee only for switching to a different rate with current provider?

Will give them a call tomorrow but just wanted to see if anyone could clarify? thanks

The no breakage fee should apply when switching to another provider too. Worth a call to confirm.

Why did you ditch the Avant switch. Yes, they are slow at the moment due to the volume, but they represent the best value in the market by a mile especially compared to PTSB.

But if staying with PTSB go for 7 year fixed for the entire amount.

Rather than overpay just the smaller amount, change the term to 15 years. This will give you a monthly payment of €1588 v €1275 and at the end of the fixed period your mortgage balance will be about €130,000

Yes, they use brokers & only cover certain areas (But Area's covered is increasing so check with avant broker for your specific area)