Switching to a tracker

B

Banquo

Registered User
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Hi
I have the option to switch my mortgage back to a tracker rate with UB.
They are matching the term of the original mortgage 8 yrs remaining.
I'm going from a svr of 3.15% to 1.15%.

But my monthly repayment is actually going up marginally - how could this be?

Any help gratefully received.
 
You presumably switched from Ulster Bank to AIB(?) some years ago?

You extended the term when you switched.

So you have, say 9 years left at 3.15%.

But Ulster will only give you the original term of 8 years.

For example

€100k @3.15% for 9 years is €1,064 per month


whereas €100k @ 1.15% for 8 years is €1,090
 
Thanks for taking the time to respond.

Im not disagreeing with your calculation I just thought the 2% differential on 100k would have been more impactful.
 
Well it is impactful.

2% on €100k is €2,000 in the first year.
In the second year it will be less, because you will have paid off capital.

You haven't given us the numbers but I am guessing that your mortgage with Ulster Bank will be paid off 1 year earlier. That is impactful.

Brendan
 
Apologies I didn't see your reply till now.

Yes you are right on reflection it's a 10 % reduction in the life of the mortgage so not to be dismissed.

Thanks again for taking the trouble to respond.
 
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