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

Good Afternoon Brendan, thank you so very much for your prompt response and advice it is greatly appreciated. With this information now to hand I will have a more in depth look and a better idea of what I am suppose to be looking for and not look at anything shorter than 7 years as advised but also good to know that holding on to my tracker maybe be best for the long haul! Your a wealth of information and again thanks very much.
 
Hi Brendan,

We are really confused as to whether or not we should fix. Would really appreciate any inputs

1) ECB + 1.15%. Currrent rate is 3.15%
2) No
3) 227,038.98
4) 24 Years
5) Ulster Bank
6) 380k
7) yes to both. (If we do decide to move, we wouldn't be looking to trade up very much, if at all )
8) No
9) we got a rate sheet which has since expired
In the meantime we got updated valuation on our home (and now have lower ltv of 60 percent) and a new rate sheet but unfortunately rates are higher than prior rate sheet:
Ulster are offering: 4 year fixed rate of 3.10% or 7 year fixed rate of 3.55%

10) No


Thanks
 
JenFC50 said:
1) ECB + 1.15%. Currrent rate is 3.15%
Click to expand...

The ECB rate is now 2.5% and assume that it will go to 3%, so you will be paying 4.15%

You can fix at 3.1% for 4 years or 3.55% for 7 years.

It's close enough given that you intend to overpay and that might trade up.
If trading up is an option at all, you shouldn't fix for 7 years.

I am not sure that it's worth fixing for 4 years.
While it seems now that ECB rates will keep rising, no one really has any idea.

Given that overpaying or trading up is on the agenda, I would stick with the tracker.

Brendan
 
Thanks Brendan. I appreciate the feedback and was thinking along the same lines. Thanks again
 
I have had reports of Ulster Bank customers on tracker being told that they could not fix?

Has anyone fixed recently?

Brendan
 
I have just spoken to a customer service rep regarding fixing my tracker and he didn’t say there was an issue, he is sending me out updated information re fixing.

I think I’m going to take the jump to fix,

I’ve a 1.05% margin on €125,800 with 20 years to go and a sub acc on a fixed rate of 2.2% due to expire in march for € 37,000 also 20 years. LTV is below 60% and no intention to sell or over pay

Ulster bank are offering 3.10% for 4 years fixed and 3.55% for 7 years. There’s no 10 year option. I keep flip flopping as to what the best option is. Affordability is the 4 year fixed but don’t want to end up in a worse situation in 4 years and have a mortgage I can’t repay.

It’s so difficult to know what the best decision is
 
I have confirmed with Ulster Bank that there is no issue.

Don't hang around. They could change the rate or withdraw it at any time. Pick one and live with it.

Brendan
 
Mortgage 1 (Home)
1) Existing tracker margin ECBR + 0.85%
2) Amount outstanding on your mortgage €139,000
3) Remaining term 13 years
4) Lender UB
5) Value of your home 410,000 plus ?
6) Might you trade up or overpay your mortgage? No plans to do either in the next 5 years
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. No
8) What rates are you considering fixing at? Unsure what to do thinking of fixing for 5 years but looking for some advice

Mortgage 2 (Rental Property)
1) Existing tracker margin ECBR + 0.95%
2) Amount outstanding on your mortgage €45,000
3) Remaining term 9 years
4) Lender UB
5) Value of your home 250,000 plus ?
6) Might you trade up or overpay your mortgage? No plans to do either in the next 5 years.
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. No
8) What rates are you considering fixing at? Unsure what to do thinking of fixing for 5 years but looking for some advice

So I’m really just looking for some advice on what is the right move to make.
With the ECB rate rises, one big decision that I’m contemplating is selling the rental property and even allowing for CGT it would give me the funds to clear the mortgage on my home property.
 
Dodger30 said:
1) Existing tracker margin ECBR + 0.85%
2) Amount outstanding on your mortgage €139,000
3) Remaining term 13 years
Click to expand...

This is very difficult.
Ulster Bank has not put up its fixed rates, unlike every other lender.
You can fix for 7 years at 3.55% . Or 4 years at 3.1%

When the ECB rate goes to 3% next week, you will be paying 3.85% and it could well go higher.

0.85% is a great margin for fixing for 4 years at 3.1% seems good as well.

On a standalone decision, I would say, on balance, fix. On balance go for 4 years.

But as you might sell the apartment and clear your home mortgage early, then you should stay on the tracker so you don't face an early repayment penalty.

Brendan
 
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Dodger30 said:
1) Existing tracker margin ECBR + 0.95%
2) Amount outstanding on your mortgage €45,000
Click to expand...

Non tracker rates for investment properties are not great. And given that you might sell the property, stay on the tracker.

Start a new thread in the Moneymakeover forum on whether or not you should sell the investment property.


Brendan
 
Brendan Burgess said:
Ulster Bank has not put up its fixed rates, unlike every other lender.
You can fix for 7 years at 3.55% . Or 4 years at 3.1%
Click to expand...

Ulster Bank did put up their rates back in November. Those rates reflect the increase.

Ulster Bank increases fixed rates – but some customers can re-fix at old rates (Nov 2022)

https://www.irishtimes.com/business/2022/11/24/ulster-bank-raises-fixed-mortgage-rates-by-075/ the NatWest-owned lender has announced a 0.75 per cent increase to its fixed term mortgage rates The exiting bank has also removed its five-year and ten-year, fixed-rate mortgage products from the...
www.askaboutmoney.com
 
Brendan Burgess said:
Ah, thanks Paul. But I think that they are still behind in the cycle?
Click to expand...
Yes, most of the bank lenders have raised their rates twice (versus once for UB).

KBC have not raised their rates at all, but their mortgages may transfer to BOI as soon as next month (based on what a poster here was told over the phone).
 
Hi, Brendan
Would appreciate your advice on the following,
1.mortgage rate : Tracker ECB +1.15%
2.Amount outstanding 109k
3. Remaining term 10yrs 7mths
4. Lender : Ulster Bank
5. Value of home : 260k.
6. Might you trade up or over pay :No .
7. No Barriers to switching
8. Fixed rate options are as follows.
2 year fixed 2.95%
4 year fixed 3.10%
7 year fixed 3.55%
Appreciate your advice on this
Thanks again.
 
@Jc1976

With the ECB rate expected to increase to 3% and possibly 3.5%, you will soon be paying 4.65%

You can fix for 4 years at 3.1% or 7 years at 3.55% and should do so immediately.

Do not fix for 2 years. It's not worth it.

Don't worry about losing your tracker. After 4 years, your balance will be down to €71k so it's less important



Based on fixing for 4 years at 3.1%
 
Thanks so much for your prompt reply and advice.
 
Hi

Appreciate if you could let me know your thoughts on whether we should fix?

1.mortgage rate : Off-set old first active now with UB, ECB +1.15%
2.Amount outstanding 220k (was at 90k but recently topped up and used funds to help buy another property)
3. Remaining term 11yrs
4. Lender : Ulster Bank
5. Value of home: 500k
6. Might you trade up or over pay: yes to overpaying, may trade up
7. Barriers to switching: none other than partner is self employed so switching may be a painful process
8. We own a separate house valued at 750k with no mortgage that we are planning to move into when renovated and then rent the 500k house or we could rent the 750k one and trade up the 500k. I am not tied to either plan - 750k house is lovely but has some downsides, trading up if house prices dropped could be good but thoughts of another renovation is not exciting!

Thanks
 
@Puddle duck

You should start a separate thread on the trading up question. This is not the thread for such a complex issue.

With a margin of 1.15%, you will soon be paying 4.15%

You can fix for 2 years at 2.95% or 4 years at 3.1% or 7 years at 3.55%.

If you are definitely keeping the house and mortgage, fixing for 4 years would be clear.

But as you might sell the €500k house, it's unclear. If you fix, you could face an early repayment penalty.

So you have to decide, quickly, how long you might have the €500k house.

If you genuinely don't know and the house is not definitely being sold but might be sold in the next couple of years, I would fix for 2 years.

A further problem is that if you keep it as a rental, AIB might well charge you buy to let mortgage rates when the fixed rate is up.

On reflection, you need to make some decisions on your housing and investment plans and the mortgage decisions will follow that.

In the meantime, stay on the tracker.

Brendan
 
Hi Brendan,

Also wondering if we should fix or stick with tracker

1) Existing tracker margin ECB + 0.75%
2) Amount outstanding on your mortgage €198,410.03
3) Remaining term 22 years
4) Lender UB
5) Value of your home €450,000
6) Might you trade up or overpay your mortgage? Currently make an overpayment of €600 monthly to reduce the term and will continue this
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. No
8) What rates are you considering fixing at? Don't know - haven't had a reply from UB yet
 
Puddle duck said:
Appreciate if you could let me know your thoughts on whether we should fix?

1.mortgage rate : Off-set old first active now with UB, ECB +1.15%
Click to expand...
Have you checked the procedure for this with UB? If not I'd do it sooner rather than later as there is no option to fix an offset mortgage so the mortgage type would have to be changed first to an standard type mortgage with the loss obviously of the offset product in general. It's not as simple as signing a form as it would be at present with a standard variable/tracker mortgage.

Now this is assuming they have not changed something in intervening years in the product make up to make it possible but I doubt it so if fixed rate is something that might need to be moved on fast then I'd enquire to ensure the offset position won't cause a delay.
 
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