Ulster Bank increases fixed rates – but some customers can re-fix at old rates (Nov 2022)

[Paul F]

Ulster Bank raises fixed mortgage rates by 0.75%

Rate hike will apply to existing customers applying for a loan to move home or top up their mortgage

www.irishtimes.com

the NatWest-owned lender has announced a 0.75 per cent increase to its fixed term mortgage rates

The exiting bank has also removed its five-year and ten-year, fixed-rate mortgage products from the market. Variable rate mortgage products are unaffected.

the lender said it would “honour the original rates” offered to [tracker, offset and variable-rate mortgage] customers if they have already applied [to fix], even if they have not yet received a formal loan offer.

It is not clear from the above info if fixed-rate customers who have recently approached Ulster Bank about re-fixing can still get the pre-increase rates. It is also not clear if the five-year and ten-year fixed rates are still available to those customers, or if those rates have been withdrawn from everybody.

Customers with fixed rates expiring in November or December 2022 will also be able to access existing rates up to the date of expiry of their current rate

 

[Mark Coan]

My understanding is that these rates only apply to the mortgage book that hasn't been sold to PTSB. So this would be Ulster tracker mortgage customers mostly, who haven't fixed already.

It appears that,
1) If you were a fixed or variable Ulster customer you now can fix onto the PTSB rates (with the exception of the 4 year fixed).
2) If you are an Ulster tracker customer these new rates are the ones you will fix onto until you are transferred to a new lender.

The communication around this has been far from clear so if anyone has had a different experience or take on the situation, I'd appreciate their feedback. It would be good to get as much clarity around this for current and former Ulster mortgage customers as we can.

 

[Paul F]

My understanding is that these rates only apply to the mortgage book that hasn't been sold to PTSB. So this would be Ulster tracker mortgage customers mostly, who haven't fixed already.

This email that @Brendan Burgess got says that about 84% of UB's fixed mortgage book has been moved to PTSB:

Looks like the UB->PTSB switch has happened…

I logged into my PTSB Mobile Banking App last night to discover my Ulster Mortgage has been added as a sub account. Has anybody else been switched over from UB to PTSB and seen the change? I am a bit surprised to see this as I did not receive any communication from UB advising the switch is...

www.askaboutmoney.com

(The same thread has people saying that their UB mortgage has or has not been moved to PTSB.)

So about one in six UB fixed-rate mortgage holders are still with UB. This cohort can still (re-)fix with UB. And if their current fixed rate expires in November or December – or if they have a tracker, offset or variable-rate mortgage and they have already approached UB about fixing – they will get the old, pre-increase rates – as far as I understand it.

Ulster Bank tracker customers will be moved to AIB (not PTSB), even if they switch to an Ulster Bank fixed rate:

Key Post - I have an Ulster Bank tracker – should I consider fixing?

What will happen if I stay on my tracker? While permanent tsb is acquiring the non-tracker mortgages from Ulster Bank, AIB is acquiring the tracker mortgage book. So your mortgage will move to AIB. Apart from the shocking treatment of tracker customers, AIB has treated its mortgage customers...

www.askaboutmoney.com

 

[Mark Coan]

Thanks Paul, I'd missed that. So it would seem that if you are a current or former Ulster bank customer, you will need to check your communication or app to know which bank you are now with and which rate and term you can now fix on until mid 2023. Messy for all concerned.

The lender you can fix with can make quite a difference as Ulster have no 3 or 5 year product and PTSB no 4 year product for existing customers. They also have significant differences in rate on their 2 year products with Ulster being much more competitive, although 2 year probably won't give enough certainty on rates for most people.

The team did a quick comparison of the 2 & 7 year rates for these customers that might be useful for some. Even after the fixed rate increase by Ulster their rates are still better than for those moved to PTSB.

Mortgage provider	Mortgage type	Fixed period (months)	Rate	APR	MaxLoanToValue	Mortgage name
Permanent TSB	Fixed	24	3.35	3.69	60	PTSB 2 Year Fixed Rate Existing Customers <=60% LTV
Ulster Bank	Fixed	24	2.95	3.4	60	UB 2yr Fixed 31/12/2024 0-60% LTV
Permanent TSB	Fixed	24	3.45	3.83	80	PTSB 2 Year Fixed Rate Existing Customers >60% LTV & <=80% LTV
Ulster Bank	Fixed	24	3	3.6	80	UB 2yr Fixed 31/12/2024 61- 80% LTV
Permanent TSB	Fixed	24	3.8	3.95	90	PTSB 2 Year Fixed Rate Existing Customers >80%
Ulster Bank	Fixed	24	3.15	3.8	90	UB 2yr Fixed 31/12/2024 81-90% LTV
Permanent TSB	Fixed	84	3.65	3.73	60	ptsb 7 Year Fixed Rate Existing Customers <=60% LTV
Ulster Bank	Fixed	84	3.55	3.6	60	UB 7yr Fixed 31/12/2029 0-60% LTV
Permanent TSB	Fixed	84	3.8	3.89	80	ptsb 7 Year Fixed Rate Existing Customers >60% LTV & <=80% LTV
Ulster Bank	Fixed	84	3.7	3.8	80	UB 7yr Fixed 31/12/2029 61-80% LTV
Permanent TSB	Fixed	84	3.9	3.97	90	ptsb 7 Year Fixed Rate Existing Customers >80%
Ulster Bank	Fixed	84	3.9	4	90	UB 7yr Fixed 31/12/2029 81-90% LTV

 

[JMC2023]

This email that @Brendan Burgess got says that about 84% of UB's fixed mortgage book has been moved to PTSB:

Looks like the UB->PTSB switch has happened…

I logged into my PTSB Mobile Banking App last night to discover my Ulster Mortgage has been added as a sub account. Has anybody else been switched over from UB to PTSB and seen the change? I am a bit surprised to see this as I did not receive any communication from UB advising the switch is...

www.askaboutmoney.com

(The same thread has people saying that their UB mortgage has or has not been moved to PTSB.)

So about one in six UB fixed-rate mortgage holders are still with UB. This cohort can still (re-)fix with UB. And if their current fixed rate expires in November or December – or if they have a tracker, offset or variable-rate mortgage and they have already approached UB about fixing – they will get the old, pre-increase rates – as far as I understand it.

Ulster Bank tracker customers will be moved to AIB (not PTSB), even if they switch to an Ulster Bank fixed rate:

Key Post - I have an Ulster Bank tracker – should I consider fixing?

What will happen if I stay on my tracker? While permanent tsb is acquiring the non-tracker mortgages from Ulster Bank, AIB is acquiring the tracker mortgage book. So your mortgage will move to AIB. Apart from the shocking treatment of tracker customers, AIB has treated its mortgage customers...

www.askaboutmoney.com

Hi

I hope I am posting this in the right place.

We received a letter from UB on 27 Oct to advised that as our fixed rate was coming to an end we could fix again at their current rates (one being as low as 2.2%). So I called them 4 November to advise that we wanted to fix again and they were to send me a proper quote for me to select the rate and send it back to them. They said it would take 5 working days. We have followed up 5 times now - we have not received anything in the post. We have asked for it to be sent to the branch and this hasn't happened either. We have even lodged a complaint - we can't speak to a manager, they are literally ignoring us.

We have since received a letter confirming that our mortgage has now been transferred to PTSB, so we rang them and they said that UB are managing the fixed rates process as per the letter we received.

So we are stuck in limbo. Has anyone else experienced this or does anyone have any advice on what we can do?

Any advice would be greatly appreciated.


Thanks.

 

[rameire]

Hi

I hope I am posting this in the right place.

We received a letter from UB on 27 Oct to advised that as our fixed rate was coming to an end we could fix again at their current rates (one being as low as 2.2%). So I called them 4 November to advise that we wanted to fix again and they were to send me a proper quote for me to select the rate and send it back to them. They said it would take 5 working days. We have followed up 5 times now - we have not received anything in the post. We have asked for it to be sent to the branch and this hasn't happened either. We have even lodged a complaint - we can't speak to a manager, they are literally ignoring us.

We have since received a letter confirming that our mortgage has now been transferred to PTSB, so we rang them and they said that UB are managing the fixed rates process as per the letter we received.

So we are stuck in limbo. Has anyone else experienced this or does anyone have any advice on what we can do?

Any advice would be greatly appreciated.


Thanks.

I would suggest, taking a copy of the letter they sent you in October, Highlight one of the options on this letter, then return this letter with a note from yourself advising that you want to move onto this rate as it was applicable to you before you were moved over to PTSB.
Send it directly to Ulster Bank.
Dont be waiting for a quote rate sheet, deal with what you have.