Ulster Bank 2.5% Fixed Rate

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Gordon Gekko

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I understand that Ulster Bank are launching a 2.5% Fixed Rate over the coming days.

€500k minimum, no income or LTV restriction (for switchers).

4 year term.
 
Gordon Gekko said:
I understand that Ulster Bank are launching a 2.5% Fixed Rate over the coming days.

€500k minimum, no income or LTV restriction (for switchers).

4 year term.
Click to expand...

UB already has a 4-year fixed product @2.6% for LTVs up to 80%, €300k minimum mortgage size.

A 10bps point move for jumbo mortgages (the % of borrowers with €500k mortgages must be tiny) is pretty underwhelming.

Still, I suppose every little helps...
 

Ah Sarenco, you’re a hard one to please!

Think back to when people would be dancing in the streets at the prospect of a 2.5% rate.
 
UB must have identified a niche market for themselves...

Bottoming out also ~2.5%
 
Gordon Gekko said:
Ah Sarenco, you’re a hard one to please!

Think back to when people would be dancing in the streets at the prospect of a 2.5% rate.
Click to expand...

Yeh, I know, but UB haven't reviewed their rates since July. I was hoping the next moves from UB and KBC would be meaningful.

A 10bp reduction on a rate that is only of relevance to a tiny minority of borrowers is pretty disappointing. It still doesn't beat BOI's (effective) 3 and 5-year fixes @2.4%.
 

I was thinking the same thing. I'm on 3% (SVR - 1.3%).

If you fix, they say you go onto SVR (4.3%) at the end of the term. I know you can then move or choose another applicable mortgage but if I fixed now for 4 years at the end of 4 years I'd owe less than €200K so I couldn't move back to the 3% and the cheapest I could then get is 3.2% (at todays rates). So to save .4% for 4 years I'd have to pay an extra .2% for the remainder of the mortgage.
I need to dust off the Excel.
 
Probably worth highlighting that it’s a 5.5 year rate because of the way the dates pan out...
 
Hi Gordon,

Could you please explain what you mean by saying this is effectively a 5.5 year rate?

Thanks in advance
 
SuperMario said:
Hi Gordon,

Could you please explain what you mean by saying this is effectively a 5.5 year rate?

Thanks in advance
Click to expand...

Some banks have terms and conditions that specify the mortgage is fixed until 5 years from drawdown of funds. These Ulster Bank products have specified end dates of 31st of March as opposed to the date of drawdown. Therefore, someone drawing down today has almost 5.5 years of a fixed rate.
 
Just by way of update, we are now on 2.5% for the next 5.5 years.

I am very happy with that in the context of where rates stand in Ireland.
 
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