Ulster bank switch - Should we jump or not?

bearbear

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Hi,

Are we crazy to consider a switch to Ulster bank considering their future in the mortgage market is uncertain?

Currently with AIB 3 years looking to switch to Ulster.

BB
 
You'll probably be okay. But I just opted for KBC, at 2.5% on a one-year fixed, instead of Ulster at 2.2% on a two-year fixed, with the intention of moving to Avant Money a year from now.
 
Hi,

Are we crazy to consider a switch to Ulster bank considering their future in the mortgage market is uncertain?

No issue if your finances are in good order and will continue to be if/when you might consider switching again. As long as you're attractive to other lenders you can always look to move in the future. It's good to keep these things under review
 
If you are looking at a medium to long term fixed rate, then I wouldn't give the future of UB much thought.

Assuming the absolute worst case scenario, that Ulster Bank were to sell on the loan, you'll still have the exact same contractual rights, fixed rate etc.
 
I am thinking of switching from Ulster Bank. Currently with UB 2.5% fixed for 4 years. AIB is offering 2.35% green fixed for 5 years and €2000 to cover cost of switching. Will keep a portion on variable for overpayment if any. I think I will break even but will be in control in case UB do close down.
 
We are now at a point where we need to decide what to do with our UB mortgage. Our current fixed rate expires 31/03/2021.

We have 13 years left and a LTV of 45%

We have a list of options for which term to go with should we want to fix again. I was thinking of 4 or 5 year fixed but when we spoke to the UB rep, she mentioned a few times about an increase in rates in 2025? Obviously, she did say that was not guaranteed etc but it has made me question how long we fix for.

Also if we fix for any amount of years and UB leaves the market, would we be in any sort of worse position when it comes to whoever takes it over? I assumed not but I am reading questions where people are looking to move now as a result and I'm not sure i understand the implications of the mortgage being taken over by another
 
I was thinking of 4 or 5 year fixed but when we spoke to the UB rep, she mentioned a few times about an increase in rates in 2025?
An UB rep has no idea what rates will be in 4 or 5 years. Nor do you or I. Fixing for long is like taking our insurance. You pay a bit more but have peace of mind that you won't face in increase over the period.

Also if we fix for any amount of years and UB leaves the market, would we be in any sort of worse position when it comes to whoever takes it over?
No. Whoever takes it over will have to honour the terms. You can always switch at any point in future if you don't like the rates that UB's successor is offering when your fixed-rate period is up.
 
Nobody has been able to tell me what Ulster bank are going to do with me as a non resident who has a commercial mortage, current account and money in a savings account. This will be interesting because as far as I know no Irish bank will take me as a customer.
 
This will be interesting because as far as I know no Irish bank will take me as a customer.
if they do exit the market.
Your loan will be sold, just like any other.
You will be encouraged to close your current account and savings. After a while, they'll close it for you and send you a cheque.
 
I'm coming off a 2 yr fixed June 21, will I be offered the opportunity to fix again or do I need to start submitting applications elsewhere?
 
An UB rep has no idea what rates will be in 4 or 5 years. Nor do you or I. Fixing for long is like taking our insurance. You pay a bit more but have peace of mind that you won't face in increase over the period.


No. Whoever takes it over will have to honour the terms. You can always switch at any point in future if you don't like the rates that UB's successor is offering when your fixed-rate period is up.
Thank you for your reply.
It helps to clarify things on what to do. I just now have to decide on what term to go with !
 
Kitty, we are in a similar situation with our UB fixed rate maturing in July, no other accounts with them. We have 19 years left, a big mortgage, and aren't in a position to switch providers right now due to other current commitments we have. To be honest the UB fixed rates are very attractive anyway and T&Cs will have to be honoured no matter who buys the mortgages.
So I figure personally we should fix for as long as possible, be that 5, 7 or even 10 years, and we will worry about the demise of UB at the end of that period.
 
UB have addressed this issue in their FAQ, using example of rate expiring in March (should already have rate options letter - existing options fully honoured), and rate expiring in June, and said nothing changes for these customers.
 
Kitty, we are in a similar situation with our UB fixed rate maturing in July, no other accounts with them. We have 19 years left, a big mortgage, and aren't in a position to switch providers right now due to other current commitments we have. To be honest the UB fixed rates are very attractive anyway and T&Cs will have to be honoured no matter who buys the mortgages.
So I figure personally we should fix for as long as possible, be that 5, 7 or even 10 years, and we will worry about the demise of UB at the end of that period.
Just make sure you're in a position to switch at the end of the fixed term, if not and if a vulture fund buys UB's mortgage book you might get stuck with a high interest rate. Not likely to be a problem if one of the other banks buys UB's mortgages.
 
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