Switcher mortgage approved by Ulster Bank - should i switch - considering they are leaving Ireland

Toshsmith

Registered User
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Hi All,

I was notified today from the Ulster Bank that my application to switch my mortgage from AIB to Ulster bank has been approved.

The main reason i wanted to switch is for the low fixed rate of 2.35% (over 5 years) and also the ability to overpay by 10% when in a fixed mortgage. This will allow me to clear earlier.

Below is my current status

Outstanding mortgage = €151,000
LTV = 35%
Year's outstanding = 18.6 years
Current interest with AIB = 2.75%
Current monthly = €858

new Mortgage with ulster

Outstanding mortgage =€151,000
LTV = 35%
Years outstanding = 18 years
Interest rate (fixed for 5 years) 2.35%
New Monthly = €860
Plan to over pay €650 per month - this will reduce the term by 8yr and 8 months

Married two children - single income of €100K per year
No Loans
35K in the Credit union
30K in the current account (Madness i know)
Pension set up 12%
Kids college fund set up vis Zurich ( Prisma + index 100) = €700 per month

I want to build an extension in 3 years as well so may need a top up of 80K


My question is - is this to risky for me to leave AIB - Should i stay or go? i don't think anyone else is offering this low fixed rate and also allowing you to overpay?

Any advise would be much appreciated
 
If you plan to build an extension soon, why overpay the mortgage and then need to look for a top up. You will be able to pay for it almost entirely out of savings in another year or two

As for your options, the threads below should answer most of your questions:
 
Thanks OKGo,

Any thoughts on the risk to move to ulster bank? the ease of overpayment with them appears to be easier
 
Hi All,

I was notified today from the Ulster Bank that my application to switch my mortgage from AIB to Ulster bank has been approved.

The main reason i wanted to switch is for the low fixed rate of 2.35% (over 5 years) and also the ability to overpay by 10% when in a fixed mortgage. This will allow me to clear earlier.

Below is my current status

Outstanding mortgage = €151,000
LTV = 35%
Year's outstanding = 18.6 years
Current interest with AIB = 2.75%
Current monthly = €858

new Mortgage with ulster

Outstanding mortgage =€151,000
LTV = 35%
Years outstanding = 18 years
Interest rate (fixed for 5 years) 2.35%
New Monthly = €860
Plan to over pay €650 per month - this will reduce the term by 8yr and 8 months

Married two children - single income of €100K per year
No Loans
35K in the Credit union
30K in the current account (Madness i know)
Pension set up 12%
Kids college fund set up vis Zurich ( Prisma + index 100) = €700 per month

I want to build an extension in 3 years as well so may need a top up of 80K


My question is - is this to risky for me to leave AIB - Should i stay or go? i don't think anyone else is offering this low fixed rate and also allowing you to overpay?

Any advise would be much appreciated
I was previously with UB and overpaid my mortgage on a fixed rate, I was allowed overpay by 10%, so can't see how you could overpay by €650 a month unless you went for a shorter term
 
I was previously with UB and overpaid my mortgage on a fixed rate, I was allowed overpay by 10%, so can't see how you could overpay by €650 a month unless you went for a shorter term
With UB you can overpay by 10% of the outstanding balance each year, not 10% of the repayment amount, before triggering a break fee.

By law, you can overpay as much as you like with any lender, but it will trigger a break fee calculation.
 
Any thoughts on the risk to move to ulster bank? the ease of overpayment with them appears to be easier

Not particularly, your loan to value (35%) and Loan to income (1.5) are healthy so if you switch to UB, there is a good chance that you will be in a position to switch away again in a few years so you don't run the risk of some unknown buyer hiking the variable rate that you would roll on to. Your bigger problem could actually be overpaying too much in the next 5 years might make you unattractive as a switcher. Some banks may not be interested in you with a balance below €100k. In that instance you would just have to continue with whatever variable you roll on to. However, you could probably pay it off quiet easily based on your current finances

Your easiest option is to stay with AIB and fix at 2.35% for 3/5 years and have a lot of flexibility to overpay and potentially to top up if you need to for the extension. Or switch to KBC/Avant.
 
Why are your repayments going up by 2 euro a month, yr interest rate dropping by 0.40%.

I get that you've taken six months off the term but those maths don't seem right on first glance.
 
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