Mortgage Redemption Figure - is this correct

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biggerry

Registered User
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Hi there,

Our current mortgage is with UB. We're hoping to convert our attic and have decided to move our mortgage to BoI as the rate that UB are charging on home imporvement loans is too high.

We've signed the relevant documentation with our solicitor and yesterday we got a letter from UB with the current redemption figure. I had a look at the mortgage statement we got from UB back in January and the figures are almost identical. I would have thought that the redemption figure would have been ~ €3 or €4K less than the figure was back in January considering we've made all our payments.

Am I missing something here?

Thanks in advance for your help.
 
What sort of a mortgage was it? Were there and T&Cs or penalties attached to early redemption?

I think all you can do is query with the lender about the figure.
 
Hi, Were you in a fixed rate and therefore had to pay a penalty. You can ask Ulster for a breakdown of the redemption figure. Even though interest was added in Jan for 2008, you would also have made monthly repayments since Jan so the principal would have decreased unless you were on interest only or had a payment break.
Spin
Mortgage Broker
 
Could you have another loan with UB? Eg Car Loan? If so, and your mortgage is an "all sums mortgage" [ie covers total amount of debt owing to that bank] then the redemption figures they are providing you with may be for your total debt to them..ie not exclusively mortgage redemption figs
 
A redemption figure is the mortgage currently outstanding plus interest (as if the mortgage was to be paid today), it is never the same amount as on the statement.
 
Thanks all for your replies.

Here's the answers to some of the questions:
It's a repayment mortgage. Rate was ECB +0.95%.

Spin, I was thinking the same as you. I've made all repayments since January, so I'd have thought the figure should have reduced.

Redstarlet, no it was just a "bog standard" repayment mortgage.

I'll give UB a call in the morning and see what they say.
 
"It's a repayment mortgage. Rate was ECB +0.95%."

That is now a very competitive rate. I doubt it is being matched by BOI on a new loan. Unless the old mortgage is small and the new mortgage quite big, are you sure that the numbers stack up in favour of redeeming it?
 
Hi Mob,

Yep, I've done the figures. The current mortgage is small and the new BoI mortgage works out about €5 more expensive per month.

We had a nightmare when we moved our PPR mortgage to UB about 6 years ago. I also tried to move some investment mortgages to UB last summer (see this thread - http://www.askaboutmoney.com/showthread.php?t=62612) and the service was so bad that I went with ICS instead (who matched the ECB +0.75% that UB were offering at the time) so I don't fancy going through all of this again.
 
Whilst I agree that the tracker rate of 0.95% over ECB I do agree about the awful service with Ulster Bank - they are a nightmare to deal with.
I dont know how much extra you are borrowing but you should be able to get a top up easy enough and the rates they are offering now both on variable and 2 year fixed are very competitive.
Are you dealing wth a Branch for the top up or through the customer service unit.
You wont ever again get a tracker of 0.95% over ECB so I would definitely compare like with like before moving.
Spin
 
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