UB Discounted Variable

M

Mellow

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We are in process of transferring mortgage from PTSB to UB for their tracker rate of 3.1%.

Have been advised that their is a discounted variable rate of 2.95% available for the first year with option then to change over to tracker - but UB representative advised that hardly anyone takes this option.

Can't see the reason why people wouldn't go for the discounted option for the first year - does anyone know?
 
Mellow said:
We are in process of transferring mortgage from PTSB to UB for their tracker rate of 3.1%.

Have been advised that their is a discounted variable rate of 2.95% available for the first year with option then to change over to tracker - but UB representative advised that hardly anyone takes this option.

Can't see the reason why people wouldn't go for the discounted option for the first year - does anyone know?
Click to expand...


I HAD a UB tracker at one stage ... and I didn't go for the one year fixed beacuse I was concerned that after the one year fixed margin on the tracker could change .. Also at the time there was talk of a possible interest rate cut .............
 
Because it's a discounted variable rate though, there should be no penalties for changing to the UB tracker rate whenever you want. If it was a 1 yr fixed rate, it would be different but UB charged me just over 50 euro for changing a variable rate to a tracker.
 
Thanks Budapest -


Am I right in thinking that it's a trade off between saving some money for the first year with the discounted variable and taking the risk that the fixed margin on the tracker rate UB offer may change next year (i.e. fixed margin goes up on their tracker next year and you lose out because you only changed over to it after the first year)
 
budapest said:
Because it's a discounted variable rate though, there should be no penalties for changing to the UB tracker rate whenever you want. If it was a 1 yr fixed rate, it would be different but UB charged me just over 50 euro for changing a variable rate to a tracker.
Click to expand...


Why the charge to go from var to tracker
 
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