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

Brendan Burgess said:
@Skyler White






As it's a rental, you would probably be fixing at the rental rates which are much higher. So stay as you are.




Again, another argument of staying on a tracker as there won't be any early repayment fee if you clear your mortgage.



If you are overpaying, it might be better to overpay the PPR mortgage as you get tax relief on the buy to let
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Thanks Brendan much appreciated, some interesting points
 
SMGD15 said:
1) Existing tracker margin ECB +2.15%
2) Amount outstanding on your mortgage 243k
3) Remaining term 20yrs
4) Lender Ulster Bank
5) Value of your home 380K
6) Might you trade up or overpay your mortgage? Maybe in future (potential inheritance from parent)
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. Reduced Income
8) What rates are you considering fixing at? Debating which: 5 year or 10 year fixed - currently at 61% LTV.
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. No
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Brendan Burgess said:
1) A tracker with a margin of 2.1% is not worth very much. So fixing is the right idea,
2) No need to switch as you will be moving to AIB so their lending rates are fair compared to BoI or PTSB.
3) You can fix for 5 years at 2.45%
4) You can fix for 7 years or 10 years at 2.95%

No one knows the right answer.
If you have a reduced income and could not handle a big increase when the 5 years is up, then maybe go for the reassurance of a 10 year fixed rate.

If it's a purely financial decision, and at the end of 5 years, you could handle an increase, I would tend to fix for 5 years.

But the big decision is that you should do one or the other today. Don't put it off due to indecision. These rates could go up at any time.
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@SMGD15 Can you log in to Manage My Mortgage and see what your LTV is, according to UB?

If you can get your LTV below 60% (either by a lump sum overpayment or by getting a higher property valuation, or a combination of the two), you become eligible for lower rates:
  • 5-year fixed at 2.35%
  • 7- or 10-year fixed at 2.8%
Note also that Ulster Bank cap their break fees at six months' interest, and AIB will have to honour that cap when they take over your mortgage. That means that the maximum possible break fee you would face if you moved home while still on a fixed rate would be about €3,400, even if you fix for 10 years. The break fee could of course be less than that.
 
Hi Brendan. Thanks so much for the advice. Looking to maybe move to fixed before UB sell off the mortgage. What do you think?? House is occupied by a family member long term.

1) Existing tracker margin. (This is set in your mortgage contract. ECB + 1.15%

2) If you have an additional mortgage on the same property, what is the rate? No

3) Amount outstanding on your mortgage €171k

4) Remaining term 22 years

5) Lender Ulster Bank

6) Value of your home €300k

7) Might you trade up or overpay your mortgage? No

8) 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, you are now renting out the property. 2nd property occupied by family member. No rental income.

9) What rates are you considering fixing at? 5 year fixed at 2.35%

10) Does your house have a high BER rating Unsure
 
Hi Brendan,

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

1) Existing tracker margin: ECB + .75% for €160,000 and +1.10% for €40,000
2) Amount outstanding on your mortgage €91,000
3) Remaining term 11 years
4) Lender Ulster Bank
5) Value of your home €700,000
6) Might you trade up or overpay your mortgage? Yes to both
7) Do you face any barriers to switching? No
8) What rates are you considering fixing at? Ulster Bank 5 years at 2.35%
Ulster Bank 10 years at 2.80%

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.

Thank you
 
Toffster said:
9) What rates are you considering fixing at? 5 year fixed at 2.35%
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Toffster said:
House is occupied by a family member long term.
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Toffster said:
4) Remaining term 22 years
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@Toffster

As this is your second home, I think that they would classify it as a buy to let and try to charge you the buy to let rates. So I doubt that 2.35% would be available to you. But even if it is, they might insist on a BTL rate when the fixed rate is up.

If you apply for it, they might then be on notice that it's a buy to let and change the tracker rate. I think it's a small risk, but probably not worth taking.

So, on balance, stay on the tracker.

Brendan
 
@Rosser

Rosser said:
6) Might you trade up or overpay your mortgage? Yes to both
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Rosser said:
Ulster Bank 5 years at 2.35%
Ulster Bank 10 years at 2.80%
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1) The margin you have is pretty good - it averages 0.82%, so you will be paying 2.82% when the new ECB rate of 2% kicks in.

2) Definitely do not fix for 10 years as you could face an early repayment penalty.

3) You could fix for 5 years.

4) But on balance, as you will be overpaying and might trade up, then I would say stick to the tracker. It's just more flexible overall.

Brendan
 
Brendan Burgess said:
@Toffster

As this is your second home, I think that they would classify it as a buy to let and try to charge you the buy to let rates. So I doubt that 2.35% would be available to you. But even if it is, they might insist on a BTL rate when the fixed rate is up.

If you apply for it, they might then be on notice that it's a buy to let and change the tracker rate. I think it's a small risk, but probably not worth taking.

So, on balance, stay on the tracker.

Brendan
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Thanks Brendan.

The bank were aware it would be a second home when I got the second mortgage off them for the other house. I don’t get any rental for it so I think they consider it as a “holiday home” kind of setup.

But I understand your points. Probably best to leave it be for the moment.

Appreciate the advice.
 
Hi Brendan, when you get the chance would appreciate the advise

1) ECB + 0.8%
2) If you have an additional mortgage on the same property, what is the rate? None
3) Amount outstanding on your mortgage: €195,000
4) Remaining term: 20 years 4 months
5) Lender: PTSB
6) Value of your home: €500,000
7) Might you trade up or overpay your mortgage? Yes
8) Do you face any barriers to switching? No
9) What rates are you considering fixing at? 3.0% 5 or 7 years
10) Does your house have a high BER rating which might: No
 
Hi Brendan, thank you so much for all the fantastic advice you give, it’s so greatly appreciated. I managed to get my tracker reinstated around 8 years ago following your fantastic advice and templates provided. I’m currently in a quandary what to do about my tracker and would really appreciate your input.

1). Existing margin : ECB + 1.05% ( latest letter from UB states my rate at 3.05%)

2) Additional mortgage : fixed @ 2.05 % until 03/23

3) Outstanding mort : Tracker - € 126,615
Ad mort- € 37,661
4) Remaining term: 20.6 Years

5) Lender: UB

6) House value (HPI) € 429,295
7) LTV : 38%
8) Barriers: separated so single income though back isn’t aware, Missed a total of 3 payments in 2010 I think while on variable interest rate but was restructured at that time. No further missed payments since
9) any fixed rates that I’m thinking of: No
10) BER: not sure but possibly C1

Thanks again
 
@Vegan30

Very close call again.

With 20 years to go and a fair enough margin, I would be tempted to take the long term view and hold onto the tracker. You will pay a bit more in the next year or two, but will probably save over the long term.
 
Brendan Burgess said:
@Vegan30

Very close call again.

With 20 years to go and a fair enough margin, I would be tempted to take the long term view and hold onto the tracker. You will pay a bit more in the next year or two, but will probably save over the long term.
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Brilliant thanks so much. I’ll take your advice and refix the the small portion asap and hold steady with the tracker.

Thankyou
 
Thank you so much for this invaluable forum, Brendan. My query is: should I change my Ulster Bank tracker mortgage to a Ulster Bank fixed mortgage

1. Margin: ECB + 1.05
2. Amount outstanding: 50K
3. Remaining term: 6.5 years
4. Lender: Ulster Bank
5. Value of Home: 320K
6. I might possibly sell my house in the next few years. I am not currently in a position to make an overpayment.
7. My income is less than when I took out my mortgage, but I don't want to switch lenders, just stay with Ulster Bank and fix with them.
8. Considering 5 year fixed with UB at 2.35%
9. No, my house does not have a high BER rating.

Thanks again
 
Paul F said:
Can you log in to Manage My Mortgage and see what your LTV is, according to UB?

If you can get your LTV below 60% (either by a lump sum overpayment or by getting a higher property valuation, or a combination of the two), you become eligible for lower rates:
  • 5-year fixed at 2.35%
  • 7- or 10-year fixed at 2.8%
Note also that Ulster Bank cap their break fees at six months' interest, and AIB will have to honour that cap when they take over your mortgage. That means that the maximum possible break fee you would face if you moved home while still on a fixed rate would be about €3,400, even if you fix for 10 years. The break fee could of course be less than that.
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Sorry only saw this today... My LTV is currently 61% as per 'Manage My Mortgage' but their valuation of my house is actually slightly higher than what local properties are going for. To get my mortgage down to 60% or less would require putting a lump sum of c. €15k in, which I don't have at this point in time.

But if rates change downwards in my favour. in the next few years, I will take the break out fee on the chin and move to new rates no problem.

I came back on here to ask if anyone get moved to the fix rates after writing in? I send my letter by registered post on 29th October and it arrived in UB on 4th November but I've heard nothing and the online account is still the same rate. I got a letter on Friday advising me of the new Tracker increase kicking in from 25th December... niiiiccceee!

Should I do anything? Forward another letter of complaint?
 
SMGD15 said:
Sorry only saw this today... My LTV is currently 61% as per 'Manage My Mortgage' but their valuation of my house is actually slightly higher than what local properties are going for. To get my mortgage down to 60% or less would require putting a lump sum of c. €15k in, which I don't have at this point in time.
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By my reckoning you "only" need to make an overpayment of €2k to €6k to get your LTV down to 60%. What exactly is your outstanding balance? What exactly is the value that UB is showing in Manage My Mortgage?

I'm not necessarily saying you should do this – it could stretch you financially and it will cause a slight delay in fixing.

SMGD15 said:
But if rates change downwards in my favour. in the next few years, I will take the break out fee on the chin and move to new rates no problem.
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I wouldn't bet on that happening, at least not in the short term.

SMGD15 said:
I came back on here to ask if anyone get moved to the fix rates after writing in? I send my letter by registered post on 29th October and it arrived in UB on 4th November but I've heard nothing and the online account is still the same rate. I got a letter on Friday advising me of the new Tracker increase kicking in from 25th December... niiiiccceee!

Should I do anything? Forward another letter of complaint?
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Ulster Bank's website says:
If you want to get in touch with us to request a Fixed Rate Quote or breakage fee or wish to order a statement please email: ECBRateIncrease@ulsterbank.com and include your name, account number and contact details. A member of our team will be in touch you within 48 hours.
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Send an email immediately to that address and request them to post you out a form that allows you to select a fixed rate.
 
Hi there, could you please advise on our situation? Just don't know what to do!

1) Mortgage Rate: Tracker ECB + .95%(2.20% currently and rising to 2.95% in January '23)
2) Amount outstanding on your mortgage: €84000
3) Remaining term: 12years 7 mths
4) Lender: Ulster Bank,
5) Value of your home: 400k
6) Might you trade up or overpay your mortgage? No
7) Do you face any barriers to switching: No.
8) 5 years at 2.35% or 10 years at 2.80%
9) High BER – No

Saw in earlier post , somebody reduced term of morgage from 13 to 10years, would this hike up my payments significantly, currently paying €641pm....we managed to pay €800pm back in 08/09..but young family now, alot more bills etc.

Many thanks for your advice.

Like
 
Brendan Burgess said:
A .95% tracker is worth something but a fixed rate of 2.35% for 5 years sounds very attractive.

Your balance in the 7 years remaining after a 5 year fixed rate period will be much lower, so I would fix at the lower rate for 5 years.

Brendan
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Thanks Brendan, yes indeed the .95% was an absolute dream , but all good things come to an end, appreciate the advice...one more thing, if we fix , are moved to AIB or PTSB when time comes.

Thanks again
 
HI Brendan,

Not sure to stay or fix or how best to weight up the options
Any insight much appreciated

U.m

1) Existing tracker margin: ECB + 1.15
2) Amount outstanding on your mortgage €171,000
3) Remaining term 14Yr 6 Mth
4) Lender Ulster Bank
5) Value of your home 350K
6) Might you trade up or overpay your mortgage? No
7) Do you face any barriers to switching? No
8) What rates are you considering fixing at? Ulster Bank fixed 2.35/5YR or 2.8/10YR maybe but open to advice
9) Does your house have a high BER rating which might qualify it for a lower rate? Yes, A3
 
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