# Fixed rate to tracker with Ulster Bank, any thoughts?



## apple1978 (12 Mar 2013)

Hello

I spoke to UB today and they said at the end of my 5 years fixed rate mortgage in July that I would go automatically onto a tracker.

This would save me a lot of money each month. I wonder if I have misunderstood them? I thought banks don't give this anymore.

Does anyone have this experience and is it a wise choice? I am completely uninformed about mortgages.

Many thanks


----------



## lecro (12 Mar 2013)

*getting back to tracker after fixed term*

I took out a tracker mortgage with Ulster bank in 2004. Fixed it for 5 years in 2007. When they sent me out my new terms there was no sign of a tracker being offered. When I phoned them up, I was told I was not entitled to a tracker rate because it was no longer being offered. So I wrote letters to the complaints department highlighting that when the fixed rate was being offered, it stated that at the end of the term, I would revert to the original offer. Since the original offer was a tracker they had to offer it to me. After 3 months of letters going over and back, they offered me the tracker again as a gesture of "good will". My mortgage is now €300 cheaper a month. 
My advice...put everything in writing. You are entitled to revert to the tracker rate. Good luck!


----------



## apple1978 (12 Mar 2013)

Bit confused now lecro, I am on a fixed rate, how would that entitle me to a tracker after the term, it was never mentioned to me in the beginning. So trackers still exist it seems....


----------



## wbbs (12 Mar 2013)

Apple1978, it depends what you started your mortgage on, did you only take your mortgage out 5 yrs ago?  If you did then it will say on your loan offer what the rate was to revert to after the fixed period. It seems in your case that if you look at the loan offer it will say ECB+ some rate or other.  This would show that you have to go back to tracker after fixed term is up.

Even though banks are no longer offering trackers to new customers they must honour (in theory!) existing arrangements which it looks like you have.


----------



## newbie2009 (12 Mar 2013)

Can I ask what rate they offered you for the tracker?


----------



## apple1978 (18 Mar 2013)

I signed up for a 5 year fixed rate, think 4.5% It ends in July. I have to check again I cannot find this point in my documentation. Going onto a tracker would save me hundreds a month. I just hope it is not too good to be true!


----------



## apple1978 (18 Mar 2013)

I failed to mention, they haven't said what the new rate would be just that I will save money.


----------



## wbbs (18 Mar 2013)

Have you a copy of your loan offer?


----------



## PadKiss (19 Mar 2013)

Hi All
2 thoughts on this Apple1978 1st...was this originally a First Active Loan that is now Ulster Bank as this might explain the reasons you are automatically reverting to tracker. In regard to the rate you will revert to it is likely to be the original margin as per your original loan conditions, check same on the loan offer. 2nd thought is that maybe banks are finally coming to terms regarding this whole tracker issue and are now following what should have always happened as per the terms and conditions of your original loan offer.!!!!! The Wizard Of Oz was a nice place to live and the banks there were nice to their customers, keep a close check on the letters that arrive and if they are telling you that you are going back to tracker you can take it as given if they have informed you as this is not a mistake they would make nowadays. Hope it helps
Padraic


----------



## apple1978 (21 Mar 2013)

Thanks PadKiss. Yes I first got the mortgage via First Active. If when the time comes the offer is not actually given to go onto the tracker, what advice do you give me. Anyone?


----------



## wbbs (21 Mar 2013)

Usually with the FA ones the default is to go to tracker, I actually saw a letter yesterday from UB confirming a fixed rate loan was reverting to tracker in July, so I presume if you ask them for it in writing you should get it.


----------



## Mokolodi (25 Mar 2013)

Apple1978 I also took out a mortgage with First Active 5yrs ago.  My fixed rate term of 4.5% expires on the 31st of this month & my contract also stated that It will revert to the tracker rate at the end of this term.  I got a letter in the post last week from UB confirming that the new rate will be 1.9%


----------

