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

Hi. Cold you please advise on my situation?

1) Mortgage Rate: Tracker ECB + 2%
2) Amount outstanding on your mortgage: 258K
3) Remaining term: 17yrs 5 mths
4) Lender: Ulster Bank,
5) Value of your home: 885k
6) Might you trade up or overpay your mortgage? Not at present
7) Do you face any barriers to switching: husband self employed, I’m no longer working.
8) Waiting on call back from UB to see what our options are …. They said it could be a few days.
If mortgage is transferring to AIB could we switch to 5yr fixed green @ 2.1 without going through the full mortgage application process?
9) BER A3

Many thanks
 
@Tka123

1) ECB +2% is not worth much so ignore the fact that you have a tracker.
2) You could wait until you go to AIB but the CCPC has not approved the sale yet, so by the time you go to AIB, rates could be a lot higher.
3) You should just fix with the best rate available from Ulster Bank now which is 5 years High Value Mortgage at 2.2%
4) Not sure why you are waiting for a call back. Rates could rise at any time. Go into them now and get the form. Check if it's available online and send it in. If it's not write to them today and tell them to fix your mortgage for 5 year at 2.2% . Even if they deny it's valid you will have a good complaint with the Ombudsman.
Brendan
 
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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
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Just to follow up on this. Happy to report that Ulster today agreed to let me swap from the 10 year fixed @ 2.8% to 5 year fixed @ 2.35%. Thanks again for the help Brendan!
 
Brendan Burgess said:
@RebelRebel20

This is very difficult.

If you fix, you will be sold to ptsb.

If you don't fix, you will be sold to AIB but by the time that happens, fixed rates may have risen.


Ulster Bank's longest fixed term is 10 years which will be 2.95%
But if you can get your mortgage down to 60% LTV, the rate falls to 2.8%.

That's not a bad rate. Go for it.

After that you will be subject to ptsb's predatory lending policies. They might have changed by then, but the Central Bank has allowed them to exploit customers for 14 years now, so I doubt it will change. But keep your credit record clean and you should be able to switch to another lender then if ptsb has not changed its spots.

Brendan
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Hi Brendan, thank you for your advise. Unfortunately we missed out on UB 2.8% 10year fixed as LTV was 30k out, they did send a valuer out for a drive by & increased value of house by 10k but was still off. They said we could pay for valuer etc but decided to fix 10years @ 2.95. After moving house last year fixing is right option for us now. Thanks again
 
Brendan Burgess said:
@jamestkirk



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
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Hi Brendan,

A couple of quick questions. I got the rate sheet back from UB and their 5 year fixed rate was 2.45%. They have my LTV at 80% but I think ti should be much lower than this. They also have a 10 year fixed rate of 2.95. If I fix and go off the tracker does my mortgage still go to AIB? Is there anyway of asking them to revise my LTV and how is that done? Really sorry for all these questions. I was going to switch to Haven Mortgages but the paperwork involved is putting my wife off that move so I guess UB and hopefully our Mortgage going to AIB is probably the better option.

thanks Brendan!
 
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@jamestkirk

Yes, Ulster Bank has confirmed to me that anyone on a tracker now who fixes will go to AIB, subject to the CCPC approving the purchase by AIB of Ulster Bank's trackers.

Not sure about the actual mechanism of claiming the lower LTV.

I assume that if the balance today is below 60% of the value when you took out the mortgage then you just claim it.

However, if you are claiming that the value today has increased, then you will need a new valuation by one of Ulster Bank's approved valuers.

Brendan
 
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Hi guys I am in a similar situation tracker mortgage house valued at €350000 outstanding mortgage €74500 13 years left new rate as of 21st of October with Ulster Bank will be 2.20% rang today and asked for fixing options to be posted out , should I fix and for how long?
 
ACER1983 said:
Hi guys I am in a similar situation tracker mortgage house valued at €350000 outstanding mortgage €74500 13 years left new rate as of 21st of October with Ulster Bank will be 2.20% rang today and asked for fixing options to be posted out , should I fix and for how long?
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@ACER1983 Please post your mortgage details in the format shown here.
 
Hi my situation is as follows Ulster bank tracker
1) 0.95%+ECB rate
2) 16k top up on variable rate 4.3%
3)Tracker €74k / top up 16k
4)Tracker 13years 5 months / Top up 16years
5)Ulster Bank
6)330k
7)No
8)No
9)waiting on bank to post out options
10) No
 
@ACER1983
You have a €90k mortgage with 16 years left on it.

Whatever else you do, you should definitely fix the top up as 4.3% variable is a terrible rate.

With a .95% margin, you will be paying 2.95% or more fairly shortly.

Fixing the lot at 2.35% for 5 years seems reasonable. But it's close.

On the one hand, you will save money over the next 5 years when your balance is highest.
But on the other, at the end of the 5 years, you will have lost your tracker.
But you will be a customer of AIB so it should not be too bad.

It really is a toss-up.

But you should definitely fix the variable bit.

Brendan
 
Thanks Brendan yes I intend to fix the top up today. We are considering at some point in future to retrofit house under the Seai scheme and build a small extension and perhaps remortgage to fund this depending on our circumstances at the time , we will probably not be in a position to do this until after the fixed rate ends if we go down the 5 year option , we are both 40 and in good full time state employment, so time wise remortgaging is an option.
 
ACER1983 said:
we will probably not be in a position to do this until after the fixed rate ends if we go down the 5 year option
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@ACER1983

I don't understand that. The two should not be linked?
Are you saying: "We won't be able to afford the upgrade for 5 years, which ties in nicely with the 5 year fix ending".
 
Sorry I wasnt very clear there, yeah I mean if we fix both for 5 years at 2.3% we won't be able to remortgage during that 5 year fixed period. Hopefully the new rates will be in today's post. Thanks for your help.
 
ACER1983 said:
Sorry I wasnt very clear there, yeah I mean if we fix both for 5 years at 2.3% we won't be able to remortgage during that 5 year fixed period.
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That is not necessarily true. You are allowed to break and re-fix during the fixed-rate period – but you would need to check what the break fee would be and whether it makes sense to pay it.

In fact, I don't think you even need to break and re-fix to get a topup for home renovations. AIB may simply set it up as a second mortgage – but you need to check with them.
 
Thanks very much that's good to know hopefully I will get offered a 2.35% rate this week so I can fix the tracker.
 
As per my earlier post in this thread, I'm in the process of moving to a fix @ 2.35%

As advised by my branch, I sent a cover letter with the application for the fix asking for my term to be reduced to 5 years (so that my mortgage is cleared at the end of the term).

My online account shows that my term is now 4yrs11mo. The fix is not yet applied and it still shows as a tracker.

Will the term being slightly under 5yrs stop my 5yr fix from being applied? I was told in-branch that there would be no issue, but seeing this change online has me a bit worried.
 
@Parking1 Ulster Bank has a weird system of fixing mortgage rates.

For example:
1665060586472.png
So someone fixing today is fixing for 5 years and 3 months.

If they have acted on part of your instruction, that means that they got it.

Brendan
 
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@Parking1 Given that the length of your mortgage term has reduced so dramatically, it sounds like they have acted on your instruction. But keep an eye on the rate. I'd expect you'll get something in the post about the change fairly soon.
 
@Brendan Burgess @Paul F thanks both

The change has gone through as explained to me. It was my paranoia that I would get a phonecall saying "you only have 4yrs and 11months left on your term so you can't avail of a 5yr fix" but luckily no such absurdity came to pass :)
 
Hi Brendan,

When you get a chance, I would be grateful if you could review below details and would very much appreciate your advice on whether it is best for me to continue to over-pay my mortgage and reduce the term of my mortgage or go with a fixed rate option?

1) Existing tracker margin: ECB + 1.15% (2.4%)
2) Amount outstanding on your mortgage €97,313.87
3) Remaining term 16years 1 month
4) Lender Ulster Bank
5) Value of your home €179,491
6) Might you trade up or overpay your mortgage? Yes to overpay.

In order to reduce the term of my mortgage, I intend to make yearly lump-sum overpayments of approx. €5000 per year.

7) Do you face any barriers to switching? No
8) What rates are you considering fixing at? Requested a call back from Ulster Bank to discuss fixed rate options. Checked online rates – AIB 5 Year Fixed 2.45%

Haven 7 year fixed at 2.65%

9) Does your house have a high BER rating which might qualify it for a lower rate? No

Your advice would be very much appreciated.

Many Thanks for your time.
 
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