Ulster Bank loyalty fixed rate question

Discussion in 'The Fair Mortgage Rates Campaign' started by qwerty5, Feb 8, 2017.

  1. qwerty5

    qwerty5 Frequent Poster

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    Just wanted to check here in case anybody has any other experience.

    I'm on Ulster Banks 3.1% loyalty rate for my mortgage.
    I was thinking of fixing for 3 years at 2.99% so I rang them to ask a couple of questions.

    The first I asked, scuppered me. I asked, at the end of the 3 years what rate would I go back to. I assumed I'd go back to whatever loyalty rate was valid at the time. The lady I was talking to said nope, I'd go back to the SVR.
    So to clarify I asked if I came off the 2.99% today this means I'd go onto the 4.3% instead of the 3.1% that I'm on now. She said that's correct. She added that I could refix at whatever fixed rates are available at the time. Nice of them.

    That doesn't sound right to me but I rang their mortgage question line so I've nowhere else to go. Has anybody fixed at the 2.99% and got told anything different?

    There's no point in me fixing at 2.99% if that's the case.
     
  2. petitverdot

    petitverdot Registered User

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    As far as I know each bank may be different. Always a good idea to read the fine print on these as many stipulate a "Roll off Rate" to which you are put on when the fixed term is up.

    I would have thought you would be put back on variable 3.7% (LTV up to 80%) as opposed to 4.3% seeing as it looks like you are currently on the LTV up to 80% Loyalty rate of 3.1%

    http://digital.ulsterbank.ie/personal/mortgages/mortgage-rates.html
     
  3. Sarenco

    Sarenco Frequent Poster

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    UB's website is pretty clear on the point:-

    "When your fixed rate mortgage expires you can revert to SVR or any other mortgage product that you may be offered at this time."

    That's not the case with all lenders. The KBC fixed rate offering, for example, provides that fixed-rate borrowers will roll off to a new business LTV variable rate as determined at initial drawdown.
     
  4. Brendan Burgess

    Brendan Burgess Founder

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    It does not sound right at all.

    Ulster Bank has advertised strongly that it allows customers who reduce their LTV to avail of the lower LTV rates.

    So, I would expect that you would avail of the lowest rate available at that stage.

    You should write a letter to them and get the answer in writing.

    Brendan
     
  5. qwerty5

    qwerty5 Frequent Poster

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    Last edited: Feb 9, 2017
    I don't think that's quite clear. It adds up to you can move to any product they offer you without listing what those products are. Im on the loyalty rate at the moment. That's a product they've offered me now and don't offer at the end of the fixed rate.

    Giving KBC credit is a bit premature. They only changed their terms sa few months ago. I switched away from them as they wouldn't take LTV into account and were happy to leave me on 4.05%. From their news today they are announcing how many new customers they got in 2016. It doesn't say how many switched away from them.
     
    Last edited: Feb 9, 2017
  6. qwerty5

    qwerty5 Frequent Poster

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    Last edited: Feb 9, 2017
    I was wrong saying 4.3%. I wasnt thinking of LTV. I assume they'd take that into account. So I should have said 3.7%

    Still not worth it I think as I'm on 3.1% now which is always meant to be 1.2% lower than their SVR. I was just trying to figure out why anybody would move to their loyalty fixed rate. Rates would have to increase a fair bit for it to be worth my while to lose the loyalty variable rate.
     
    Last edited: Feb 9, 2017
  7. Brendan Burgess

    Brendan Burgess Founder

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    OK, now I think I understand what has happened here.

    Ulster Bank have some existing mortgages where they gave people special rates linked to the SVR.

    This deal is better for you than any deal on offer to new customers.

    So you should not give it up.

    Brendan
     
  8. qwerty5

    qwerty5 Frequent Poster

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    Close. It's an existing deal. If you borrow more than 200K today and bank with UB, you can go on their Loyalty rate of 3.1 Variable. It's advertised on their site. (http://digital.ulsterbank.ie/personal/mortgages/mortgage-rates.html). At the bottom of the variable rates section.

    As I'm in the "Loyalty" category now, I can fix for 3 years at 2.99% (that's at the bottom of their Fixed rate section).
    Not a huge difference. But could be worth it if I could return to the Loyalty Variable rate (whatever it would be) in 3 years.
    But after the 3 years I'm no longer Loyal and would go to 3.7% if my LTV was still above 61%.

    If I stay on the Loyalty rate forever I'll always be 1.2% lower than their published SVR of 4.3%

    But your end line is right. There's no point in me saving .1% a year over 3 years to go up by .6% when the fixed rate ends.
     
  9. Sarenco

    Sarenco Frequent Poster

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    Yes, but that product may or may not be offered to you at the end of the fixed-rate period. UB are not committing themselves to offering you any roll-off rate, other than their SVR, at the end of the fixed-rate period. That's the point.

    It's not a question of giving KBC credit - the terms of their fixed rate product is different. That's all.
     
  10. eamonnbill

    eamonnbill Registered User

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    I see Ulster bank has new loyalty rate is 3.0%.... savings of .1% but still something.
     
  11. newirishman

    newirishman Frequent Poster

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    Only for LTV <60%, which is completely new - the Loyalty rate didn't previously have a <60% band on offer.
     
  12. qwerty5

    qwerty5 Frequent Poster

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    Yeah the Loyalty rate you're referring to still exists. It was always up to 80% LTV and is currently 3.1%

    This is a new rate. Loyalty "Plus". I'm just on the cusp of 60%. With the news today that houses in Dublin have jumped massively I might be 59.something %

    I rang UB this morning and asked the guy if I needed to get a valuation. He was non comittal. He said he'd send me the forms and would do the calculations and get back to me. I don't think the calculations are rocket science but as he wasn't pushing for a valuation I'll fill in the forms :)
     
  13. Dauhee

    Dauhee Registered User

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  14. Jiblet-run

    Jiblet-run Frequent Poster

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    My LTV is <60% and my mortgage is below 200k.
    I had a Ulster Bank CA but I closed it around a year ago.

    In order to avail of the rate drop (3.5% -> 3.2%) would it be as simple to open a UB CA and have my salary mandated to this account?
    I want to keep my existing KBC CA as my primary account and therefore transfer my salary across manually from UB -> KBC each month.

    I assume although not stated (or is it an issue) that UB would want me to pay the mortgage from my UB CA?
    And I wouldn't be exempt from banking charges (4 euro per month)?

    All seems ok? Any views?
    I'll call UB later today as well.
    I know some people would see the transferring as hassle but I don't and I am happy to keep my KBC as my main account.
     
  15. Jiblet-run

    Jiblet-run Frequent Poster

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    I gave UB mortgages a ring today and they will send out the rate sheet. Will get it in the next 5 days.
    I was told that once my salary is mandated to a UB CA then I am eligible for the loyalty rate which is 3.2% in my case.
    No need to pay the mortgage from my UB CA although it might suit me to do this.

    Separately I rang UB general enquiries and although I could have a service account, I would still have to pay the 4 euro monthly fee.
    So I've gone ahead and applied for a new UB CA.
    Even with the fees I'll be making a small saving each month.
    Better in my pocket than theirs.
     
    Dauhee likes this.