Key Post Ulster Bank mortgage customers should fix for as long as possible before ptsb buys the mortgage and bumps up the rate

Trying to decide on the correct approach to this myself.

We have an outstanding mortgage of €365k, Ulsterbank estimate the value of our home at €700k based on the HPI, so lets say €650k. We are currently on the 2.3% fixed rate, due to expire end Sept 21. During the last 3 years with Ulsterbank we've been able to make lump sum overpayments of ~5% per year and could probably go higher than this in the next few years if we push ourselves. So the overpayment flexibility is very important to us.

According to the Ulsterbank "Manage My Mortgage" site we're eligible for a 5 year fix at 2.2% for loans >250k.

The alternative is Avant at the 1.95% rate, the Broker we are working with has told me that Avant allow 10% overpayment/year, the same as Ulsterbank do, but I'm not certain that is correct. Has anyone else been able to confirm this?

Any thoughts on the right course of action in the above situation?
 
TheLastBeep said:
the Broker we are working with has told me that Avant allow 10% overpayment/year, the same as Ulsterbank do, but I'm not certain that is correct. Has anyone else been able to confirm this?
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Yes, it's correct. This was only a recent change, but is detailed on their website.

1.95% vs 2.2% is a saving of c. 900 per year interest. Cost of switching is c. 1,500 so payback period is less than 2 years.

But don't waste time making a decision. If you revert to UB SVR for a period whilst switching any potential saving could be wiped out.
 
Thanks for the responses. With the overpayment question answered that removes any doubt about moving being the right thing to do. We've started the process but will now get on to making that happen asap to avoid/reduce the time we're on the SVR rate.
 

Is ICS/Dilosk not the superior product to Avant now, with 20% overpayment facility, payment holidays etc.?
 
Itchy said:
Is ICS/Dilosk not the superior product to Avant now, with 20% overpayment facility, payment holidays etc.?
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Possibly something for another thread but can anyone find more detail on this? So far I can only see a single message saying "Overpay your Mortgage by up to 20% annually without penalty" but not details on if it is 20% like BOI or 20% of the balance like others.
 
Where exactly did you see that?

The actual wording on their website is:

"Overpay an additional 20% off your mortgage in any 12 month period without penalty"
 
Thanks Brendan,
Unhelpfully the ambiguous wording is on the switcher page.

Here's the wording from their broker presentation which is clearer:
"20% overpay facility - Either lump sum reductions or regular overpayments on fixed rates of up to 20% of the total loan amount in any 12 -month period without penalty"
 
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