Switching timelines

[DublinD]

Currently have a 4 year 2.6% UB fixed rate which will expire in Sept 2022. Break fee when last quoted was 2.5k last year.

Planning a fair bit ahead here…Looking at where UB might end up and the current rates available from Avant, they would be a preferable switch. Question is more of timing and how long does a switch take, and when should I start getting things in order to hope to get an offer from Avant close to Sept 2022 to minimise a break fee (willing to pay break fee but balancing it with timing)

 

[skrooge]

In a similar boat something to consider is the break free will change daily with market rates but also the reference rate had probably moved to 1 years rate rather then 2 year rate so might be worth checking break free again (on my list of things to do).

On the logistics the whole process is a lot less drawn out when compared to purchasing a place as it's only between two parties (you and loan provider) and doesn't include a seller.

Loan approval should last for 6 months. So something that you could start mid year if targeting September. Again given potentially small break free you might consider going earlier. Really need to compare break free versus higher interest charge to know what's best.

From loan application to approval you're probably talking weeks. Though I did see a post on here discussing delays... But not sure how representative that issue was.

Legal aspect of things.. assuming you're using the same solicitor that should have all the paperwork so shouldn't add too much to the process. That's assuming your home has no unusual characteristics that might raise concerns.

 

[Elderflower]

I see on the news that Ulster bank will be closing to new business from next week.

Does this effect current mortgage holders that want to switch to a lower interest rate within ulster bank, i.e from 2.6 % to 2.2 ?

 

[DublinD]

In a similar boat something to consider is the break free will change daily with market rates but also the reference rate had probably moved to 1 years rate rather then 2 year rate so might be worth checking break free again (on my list of things to do).

On the logistics the whole process is a lot less drawn out when compared to purchasing a place as it's only between two parties (you and loan provider) and doesn't include a seller.

Loan approval should last for 6 months. So something that you could start mid year if targeting September. Again given potentially small break free you might consider going earlier. Really need to compare break free versus higher interest charge to know what's best.

From loan application to approval you're probably talking weeks. Though I did see a post on here discussing delays... But not sure how representative that issue was.

Legal aspect of things.. assuming you're using the same solicitor that should have all the paperwork so shouldn't add too much to the process. That's assuming your home has no unusual characteristics that might raise concerns.

Thanks, new break fee quote is being requested this week. Got our mortgage before the bank wholesale rates dropped significantly so not expecting a big drop..could be 6 months interest...good to know on the timings..Thanks

 

[skrooge]

I see on the news that Ulster bank will be closing to new business from next week.

Does this effect current mortgage holders that want to switch to a lower interest rate within ulster bank, i.e from 2.6 % to 2.2 ?

Not immediate impact for existing customers. For the time being you can refix