UB - new fixed rates as low as 3.3%

Hi,

I'm with UB on a SVR of 3.8 as LTV < 60%.

Looking at the latest rates 3.3% seems to be an improvement...but with this I presume I will lose the option to pay lump sums off the capital, which i have been doing. Do you think banks will off an option of a split mortgage - without adding a load of charges?

Also - can someone explain why the headline rate is 3.3% (or 3.55% if you look at the table on the UB press release page) but the APR is 4.1%? I was of the understanding that the APR was the rate you should really heed.
 
RedTea said:
Also - can someone explain why the headline rate is 3.3% (or 3.55% if you look at the table on the UB press release page) but the APR is 4.1%? I was of the understanding that the APR was the rate you should really heed.
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I think the APR is awkward to calculate on a fixed rate loan as you'll be changing onto a different rate after 3 years but nobody really knows what that rate will be. Do your sums over the period of the fixed rate.
 
These are ridiculous rates

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There are no short term fixed rates.
Most borrowers will not be able to fix because they are in negative equity.
No reduction in the variable rate.

Brendan
 
that table is wrong (I know it's UB's own table, but it's wrong nonetheless)
the 3yr < 60% rate was 3.65%, is now 3.3%

3.3% is pretty decent - someone with a 250K mortgage on 4.3% over 25 years would save €137 per month switching. Variable rates may drop in the future but they'd need to go below 3% fairly quickly to cancel out the immediate savings from this fixed rate...
 
I am thinking about fixing for 3 years.
I have a LTV of < 60% so I could avail of the 3.3% fixed rate for 3 years.
I am currently getting 3.8% on my variable rate.

One question in relation to Ulster Bank when you complete your fix term and roll on to the SVR available at the time.
Are you stuck at the SVR of the day or could I avail of the variable rate that gives a better discount taking my LTV < 60% in to account?
In other words are you penalised for obtaining a fixed rate that when it completes you are no longer able to avail of the better variable rates for those with good LTVs?

The reason I ask this is I remember mortgage meetings from some of the other banks that I met (EBS I believe) that said you could fix - however your roll off rate would be the SVR and I couldn't avail of any of the lower variable rates based on my LTV.
 
Ulster Bank is the only bank which allows its existing customers avail of its new product rates, without restriction.

So if you have a <60% mortgage now, and you come out of your fixed with <50%, you will get the <50% rate.

Brendan
 
Just a question on this, I'm in a position to move, and am getting ready to move all my business away from BOI.
But why would you fix with ulster bank for 3 years when you can get the same rate from KBC 3.3% without fixing?

and I believe kbc give 2000 euro towards the cost of the switch?
 
Brendan Burgess said:
Ulster Bank is the only bank which allows its existing customers avail of its new product rates, without restriction.

So if you have a <60% mortgage now, and you come out of your fixed with <50%, you will get the <50% rate.

Brendan
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Thanks for the reply.

I called Ulster Bank and they said my rate is a discounted rate - so it's the standard variable rate minus 0.5% (4.3 -0.5% = 3.8%) - due to my LTV of 60%
However I will loose my discounted rate if I go fixed and after 3 years and will roll on to whatever the SVR of the day is.
Now of course there could be a better deal available at the time for LTVs < 60% and as you mention Ulster Bank does not restrict existing customers to avail of its new products.

@ClubMan - See here for Ulster Banks new fixed rated - [broken link removed]

@ Todo - I suppose there is a lot of work involved in switching and seeing that my mortgage is less than 1 year old, I would be hesitant to repeat this process so soon. In addition I believe I would need a current account with KBC? By all means I am not rule out switching but just thinking about my options and currently exploring the Ulster Bank option.
I guess with Ulster Bank not restricting its existing customers to avail of it's new products is a good thing.
 
todo said:
But why would you fix with ulster bank for 3 years when you can get the same rate from KBC 3.3% without fixing?
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KBC's lowest variable rate is 3.7% reduced to 3.5% with the current account discount.

from their website

Rates from as low as 3.30% fixed and 3.50% variable when you opt for the current account discount

But your overall question is right. I consider a 3.5% variable rate to be far preferable to a 3.3% rate fixed for three years.

The question is whether you want to do business with KBC who have an active policy of attractive rates for new business but then screwing the customer as soon as they are existing customers. Don't forget the existing customers who are paying 4.3% now were once new customers attracted by some aspect of KBC's pricing.
 
Brendan Burgess said:
The question is whether you want to do business with KBC who have an active policy of attractive rates for new business but then screwing the customer as soon as they are existing customers. Don't forget the existing customers who are paying 4.3% now were once new customers attracted by some aspect of KBC's pricing.
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That's a fair point but with such a low LTV I suppose a borrower could be reasonably confident that they could switch again to another lender if necessary.

It's obviously impossible to know in advance whether this is the right time to fix a mortgage rate but you could certainly make the case that recent movements in the EZ yield curve indicate that the interest rate cycle may have finally turned. Time will tell.
 
todo said:
Just a question on this, I'm in a position to move, and am getting ready to move all my business away from BOI.
But why would you fix with ulster bank for 3 years when you can get the same rate from KBC 3.3% without fixing?

and I believe kbc give 2000 euro towards the cost of the switch?
Click to expand...

Because the cheap rate with Kbc is for new customers only. I've asked other people getting quotes on this forum and they've confirmed that after a year you're not a new customer any more. So you go into their existing customer rates.

If youre dealing with Kbc ask them yourself and let us know if you get a different answer.
 
mickoneill30 said:
I've asked other people getting quotes on this forum and they've confirmed that after a year you're not a new customer any more.
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Hi Mick

Once you draw down your mortgage you are an existing customer. If they cut rates for new customers the following week, you don't get them.

Brendan
 
Looking at the latest rates 3.3% seems to be an improvement...but with this I presume I will lose the option to pay lump sums off the capital, which i have been doing. Do you think banks will off an option of a split mortgage - without adding a load of charges?

Hi Red Tea,

I'm currently in the switching process from BOI to ULB and yes you can split with ULB - I am splitting my mortgage between fixed (70%) and Variable (30%) so I can continue to pay lump sums without penalty, where needed.
 
Brendan Burgess said:
Hi Mick

Once you draw down your mortgage you are an existing customer. If they cut rates for new customers the following week, you don't get them.

Brendan
Click to expand...

That's what I thought. But you see loads of posts with people talking about cheap KBC rates. Surely people aren't just looking at the rate for the first year.

I heard on RTE (or could have been Newstalk, I was commuting) on Monday a discussion about mortgages. The lady said something like why would you move to BOI as they have one of the highest variable rates. Then about 1 minute later were saying how great KBC was. After year 1 KBCs rate is the same as BOI and they don't care about LTV. So if you've 50% LTV or 80% LTV the cheapest variable rate you can get from KBC after a year is 4.3% if you move your bank account to them.

Yes KBC are great in year 1. After that they don't seem to give a damn. So if your mortgage is longer than a year they're not that great :)
 
mickoneill30 said:
That's what I thought. But you see loads of posts with people talking about cheap KBC rates. Surely people aren't just looking at the rate for the first year.

I heard on RTE (or could have been Newstalk, I was commuting) on Monday a discussion about mortgages. The lady said something like why would you move to BOI as they have one of the highest variable rates. Then about 1 minute later were saying how great KBC was. After year 1 KBCs rate is the same as BOI and they don't care about LTV. So if you've 50% LTV or 80% LTV the cheapest variable rate you can get from KBC after a year is 4.3% if you move your bank account to them.

Yes KBC are great in year 1. After that they don't seem to give a damn. So if your mortgage is longer than a year they're not that great :)
Click to expand...
Hi Mick,

Variable rates quoted by KBC for new business are not just for 1 year. You'll remain on that rate until such a time as they change it, possibly in line with any change to their SVR.
 
I rang them last year myself and asked the question about getting the cheaper rate (I'm an existing customer with KBC).
The guy I spoke to told me I could possibly apply for a new mortgage, pay the legal fees and get a new mortgage but after a year I'd be going back up to the existing customer rate. The legal fees at the time were close to what I would have saved so there was no point in me doing this.

Then other posts (e.g. post 13 on this http://www.askaboutmoney.com/threads/evaluating-the-bank-of-ireland-2-cash-back.194719/#post-1436933) contradict what you've posted.

I suppose the important thing is whatever KBC promise you, make sure it's in writing.
Or better yet, for anybody who has a new mortgage with KBC what does the contract say happens after a year.
 
Actually, I just rang KBC saying I was a new customer with 60% LTV and asked them what would happen after a year.

Like you said (Generic Name) after a year they won't go to "Existing Customer" rates. You'll still be classed on your LTV and you'll still have the cheaper rates.
So I'm definitely moving off KBC now. I'm on close to 60% and they're charging me 4.3%.
 
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