Key Post I have an Ulster Bank tracker – should I consider fixing?

10 years is too long and too expensive at 2.8%
Fix for 5 years at 2.35%

After 5 years, your balance will be down to only €54k
1663595644940.png
So even if the rate then is a lot higher than 2.8%, you will be paying it on an average balance of about €30k
And with only 11 years left, there is a good chance that you might overpay your mortgage or clear it early.

Brendan
 
Brendan Burgess said:
10 years is too long and too expensive at 2.8%
Fix for 5 years at 2.35%

After 5 years, your balance will be down to only €54k
View attachment 6667
So even if the rate then is a lot higher than 2.8%, you will be paying it on an average balance of about €30k
And with only 11 years left, there is a good chance that you might overpay your mortgage or clear it early.

Brendan
Click to expand...
Thanks Brendan. Pity I didn't see this thread last week......think I'll ring them to see if I can swap fixed rates.
 
Thinking of switching to Avant. I have 13 years left on Mortgage with 153k left. On a tracker at 2.40 for main mortgage with sub account on a fixed rate of 2.45. Only started on sub mortgage fixed rate this year.

I'm reading a lot on switching but am going around in circles... anyone offer me advice? Im with UB.

Many thanks
 
Brendan Burgess said:
If you want to ask whether you should fix or not, please provide the following information:
1) Existing tracker margin. (This is set in your mortgage contract.)
  • If your tracker margin is 1%, please state it in the following format to avoid confusion: ECB + 1%
2) Amount outstanding on your mortgage
3) Remaining term
4) Lender
5) Value of your home
6) Might you trade up or overpay your mortgage?
7) Do you face any barriers to switching? E.g. an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage.
8) What rates are you considering fixing at?
9) Does your house have a high BER rating which might qualify it for a lower rate? Check it here or estimate it if necessary.
Click to expand...
Hi Brendan,

See below... am really unsure what to do. Any advice would be greatly appreciated.


1. Tracker @ 2.40 Sub Mortgage @2.45 4 years (Fixed in April)
2. €153,540
3. 13 years
4. UlsterBank
5. 320K
6. No
7. No
8. Avant 5 years fixed at 2.65%
9. BER C2
 
@jamestkirk

jamestkirk said:
Tracker @ 2.40
Click to expand...

I don't know what that means.
If it's ECB +2.4% then definitely give it up.
If it's ECB 1.25% + 1.15% = 2.4% , probably give it up anyway, as the rate will go to about 3.15%

Why would you switch to Avant?
Just fix with Ulster Bank for 5 years at 2.35%

Your mortgage will go to AIB and you will probably get a fair rate when the fixed rate ends.

Brendan
 
Brendan Burgess said:
@jamestkirk


i logged
I don't know what that means.
If it's ECB +2.4% then definitely give it up.
If it's ECB 1.25% + 1.15% = 2.4% , probably give it up anyway, as the rate will go to about 3.15%

Why would you switch to Avant?
Just fix with Ulster Bank for 5 years at 2.35%

Your mortgage will go to AIB and you will probably get a fair rate when the fixed rate ends.

Brendan
Click to expand...
According to UB Mortgage Portal I am not eligible to switch. I plan to call them tomorrow.
 
jamestkirk said:
According to UB Mortgage Portal I am not eligible to switch. I plan to call them tomorrow.
Click to expand...
You are eligible to switch. That just means that you can't do the switch through the Manage My Mortgage portal. Call them and ask them to send you out a break fee quote and a rate selection form (in case you want to re-fix with UB instead of switching to another lender). You will receive two separate letters.
 
Paul F said:
You are eligible to switch. That just means that you can't do the switch through the Manage My Mortgage portal. Call them and ask them to send you out a break fee quote and a rate selection form (in case you want to re-fix with UB instead of switching to another lender). You will receive two separate letters.
Click to expand...
Hi Brendan and Paul F,

Thank you both for your help. Really appreciate it. Plan to call UB this morning and hopefully get this process going. I know my Mortgage is going to AIB and after reading an article this morning about a backlog with banks processing mortgage switching Ill gladly take the advice here and get rate of UB.

Thanks again.
 
Brendan Burgess said:
OK, so your net mortgage balance is €34,000

Let's say you fix for 2 years at 2.2%. Your mortgage will now be a fixed rate and will be sold to ptsb.


Your repayments will be as follows:

View attachment 6627
That does seem like the right idea.

Let's say that at the end of the two years the ECB rate is back down to 0% (Very unlikely) and the ptsb fixed rate is 3% , you will be paying 2% more than you would otherwise be paying.

But as your balance will be down to €17k , that is only €340.

So go ahead with your plan:
1) Pay the cash off the balance.
2) Fix the rate for 2 years.

Brendan
Click to expand...
Hi Brendan,

I had a rethink about my potential to pay off in full within the 3 years, so I settled on a 5 year fix at 2.35%, changing my mortgage term to 5 years, so that I will have cleared the mortgage at the end of the fixed period.


As the medium term goal for ECB is 1.5%, that would put my at 2.45% on the current tracker. Hopefully I haven't made a misstep, but as I haven't signed anything yet, I would appreciate any feedback.
 
Hi Brendan and Paul F,

So I called UB... and they are sending out documentation within 5 working days. I just hope they do.
 
jamestkirk said:
Hi Brendan and Paul F,

So I called UB... and they are sending out documentation within 5 working days. I just hope they do.
Click to expand...
In case it's helpful, on my UB mortgage account online, the interest rate was listed as inclusive of the ECB rate (though it did not specify this - I had to check it against my mortgage documentation).
 
jamestkirk said:
So I called UB... and they are sending out documentation within 5 working days. I just hope they do.
Click to expand...
If you do decide to fix your tracker and re-fix your fixed-rate portion with UB, make sure that the forms you fill in cover both mortgages (the tracker part and the fixed part).
 
Hi Brendan,

I’d appreciate your advice. The following are the details:-


1) Tracker interest rate ECB rate: 1.25% Margin: 1.15% Total rate: 2.4%

2) If you have an additional mortgage on the same property, what is the rate? No
3) Amount outstanding on your mortgage €144,000
4) Remaining term 14 years 7 months
5) Lender Ulster
6) Value of your home €400000
7) Might you trade up or overpay your mortgage? No
8) Do you face any barriers to switching? No

9) What rates are you considering fixing at? Ulster offered a fixed 5 year at 2.35% or a fixed 10 year at 2.8%. I am unsure if I should leave the tracker rate and fix and if I fix what term would you suggest 5 or 10 years! I understand when Ulster leave my mortgage account will transfer to AIB.
10) Does your house have a high BER rating which might qualify it for a lower rate? No
 
Michelle1900 said:
Ulster offered a fixed 5 year at 2.35%
Click to expand...

This seems like the best option. With a a margin of 1.15%, you are nearly there already. Grab it while it's available.

You may face a rate higher than 2.8% after the 5 years is up, but it will be on a smaller mortgage.

Brendan
 
Brendan Burgess said:
This seems like the best option. With a a margin of 1.15%, you are nearly there already. Grab it while it's available.

You may face a rate higher than 2.8% after the 5 years is up, but it will be on a smaller mortgage.

Brendan
Click to expand...
Brendan,
Thank you so much for your reply. Can I ask a stupid question. I understand that after five years my mortgage will be smaller but aren't the repayments still on the original amount.

The monthly repayments with the 5year fixed at 2.35% are €946.80 and the monthly repayment on the ten-year fixed at 2.8% would be €976.18. I am worried as to what the rate might be in five years. I know we don't have crystal ball but again I would appreciate your opinion.

Thank you
Michelle
 
@Michelle1900

It's not a stupid question, but it's a complicated answer and difficult to explain as most people find it difficult to understand the difference between repayments and interest.

Focus on the interest charged and not the repayment

At 2.35% , after 5 years, your balance will be €101,500 .

A new interest rate will be applied on this balance and the repayment calculated accordingly.

The 5 year rate will be about €600 a year less interest. Or about €3,000 over the 5 years. Why not pay this off the capital instead, and you will owe about €98,500?

Brendan
 
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