Some questions on Discounted Variable Rates

[pclarkeo]

Just a few questions as I start this journey to buy a house for the first time, I intend to book an appointment with the bank but just to get the ball rolling...

This is based on a house to the value of 450,000 with a 90,000 deposit. So a 360,000 loan with Ulster Bank.

The following rates were returned:

For an Max LTV of 80%:

• Discounted Variable 3.70%
• Discounted Variable Loyalty 3.10%

SVR = 4.3%

1) How long would this Discounted Variable Loyalty of 3.1% be active? Would this switch to the SVR after a certain amount of time?

2) If there was a drop in the SVR, would this be reflected in the Discounted Variable Loyalty rate? Has this happened in the past and has the bank passed on the drop to the Discounted Variable Loyalty also? If there was a drop in the Discounted Variable Loyalty, would this be passed on to existing customers or would this be for new customers only?

Thanks


Edit:
ok I've read a few posts on here and on UB site and my understanding is that this discount is active for the life of the mortgage.
So in this case it would be SVR - 1.2% for the Discounted Variable Loyalty rate.
And to qualify for this I need my current account to be with Ulster Bank and have an LTV of 80%
Is this correct?

 

[qwerty5]

That's correct. I'm with Ub and asked the same questions. The discount lasts for the life of the mortgage.

To qualify for the discounted rate now your LTV is <80%.
I didn't see a condition for my LTV to stay below that (although that's obviously the plan).