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

Monbretia said:
there is no option to fix an offset mortgage so the mortgage type would have to be changed first to an standard type mortgage with the loss obviously of the offset product in general. It's not as simple as signing a form as it would be at present with a standard variable/tracker mortgage.
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Hi Monbretia

Well spotted! I missed that completely.

Brendan
 
CailinBeag said:
1) Existing tracker margin ECB + 0.75%
2) Amount outstanding on your mortgage €198,410.03
3) Remaining term 22 years
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@CailinBeag

Very difficult to call this one. A 0.75% margin with 22 years left is very valuable.

You will soon be paying 3.75% and this will probably rise to 4.25%

By comparison you could fix for 4 years at 3.1% or 7 years at 3.55%

But after the 7 years, who knows what rates AIB will be charging.

On balance, I would stick on the tracker.

Brendan
 
www.independent.ie

Race against time for AIB and Ulster Bank tracker customers to lock into fixed rates

Tracker mortgage customers with AIB and Ulster Bank have been warned they are running out of time to lock in to attractive fixed rates.
www.independent.ie www.independent.ie

Tracker mortgage customers with AIB and Ulster Bank have been warned they are running out of time to lock in to attractive fixed rates.

The two banks have some of the lowest fixed rates in the market, but it is expected these rates will be gone in weeks.

Many of those with trackers are considering fixing, especially since the European Central Bank ( ECB) is about to raise its rates for the fifth time this week, a move that will cost customers thousands of euro in extra repayments.
 
1) Existing tracker margin ECB + 0.75%

2) Amount outstanding on your mortgage €87K
Main account €69,000
Sub account €18,000
( Both on same rate & length of time )

3) Remaining term 11 yrs 3 mths
4) Lender Ulster Bank
5) Value of your home €250- €300K
6) Might you trade up or overpay your mortgage?No
7) Do you face any barriers to switching? E.g. an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage. Yes
8) What rates are you considering fixing at ? Didn’t approach Bank yet until we see what you think we should do.

9) Does your house have a high BER rating which might qualify it for a lower rate? Check it here or estimate it if necessary. No
Thank you in advance for any advice as clueless here ….all advice ever was never give up a tracker !!…..but it’s a lot at moment to sustain all the increases
 
@MaryF1234

With the ECB rate now at 3%, you will shortly be paying 3.75%
If rates increase in line with expectations, you will be paying 4.25%

You can fix for 4 years at 3.1%.
Or for 7 years at 3.55%

MaryF1234 said:
but it’s a lot at moment to sustain all the increases
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Given that the increases are putting you under pressure, then you should definitely fix. It's really a toss up whether to go for 4 years or 7 years.

7 years probably gives you the insurance you need.


But if you decide to fix, do so today. Rates could go up any day.

Brendan
 
Brendan Burgess said:
@MaryF1234

With the ECB rate now at 3%, you will shortly be paying 3.75%
If rates increase in line with expectations, you will be paying 4.25%

You can fix for 4 years at 3.1%.
Or for 7 years at 3.55%



Given that the increases are putting you under pressure, then you should definitely fix. It's really a toss up whether to go for 4 years or 7 years.

7 years probably gives you the insurance you need.


But if you decide to fix, do so today. Rates could go up any day.

Brendan
Click to expand...
Thank you very much …… just have to convince the hubby as he doesn’t want to fix and keep our tracker
 
1) Existing tracker margin. (This is set in your mortgage contract.)
  • ECB + .75%
2) If you have an additional mortgage on the same property, what is the rate?
  • n/a
3) Amount outstanding on your mortgage
  • €60,550
4) Remaining term: 2 years 10 months

5) Lender: UB

6) Value of your home: €580K

7) Might you trade up or overpay your mortgage? In a position to drawdown 25% of buy out bond in a couple of months - is that wise ?

8) Do you face any barriers to switching? E.g., an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage, you are now renting out the property. NO
9) What rates are you considering fixing at? : Should we fix or pay off early ?

10) Does your house have a high BER rating which might qualify it for a lower rate? Check it here or estimate it if necessary: NO

I am in a position to access 25% of a buy out bond later this year and may possibly draw down on that to pay off balance - if we fix now are we prevented from paying off later in the year ? or are there charges associated with paying off fixed mortgage - we got redemption letter from UB on paying off tracker and no extra charges for paying off tracker early
Many thanks
 
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@telco

With such a low balance and such a short term remaining, I wouldn't worry too much about it.

You could fix for 2 years at 2.95%
Your tracker will cost you 3.75% after yesterday's hike.

If you make the wrong call and keep the the mortgage for a full year, it could cost you 1% of €60,000 declining , so maybe around €500.

I would stay on the tracker for the flexibility and put your energy into deciding the best strategy on the big issue - the buy out bond.

Brendan
 
Brendan Burgess said:
@MaryF1234

With the ECB rate now at 3%, you will shortly be paying 3.75%
If rates increase in line with expectations, you will be paying 4.25%

You can fix for 4 years at 3.1%.
Or for 7 years at 3.55%



Given that the increases are putting you under pressure, then you should definitely fix. It's really a toss up whether to go for 4 years or 7 years.

7 years probably gives you the insurance you need.


But if you decide to fix, do so today. Rates could go up any day.

Brendan
Click to expand...
Hi Brendan quick question on your reply if we weren’t under pressure would you still advise to fix ?
Thank you
 
Brendan Burgess said:
@telco

With such a low balance and such a short term remaining, I wouldn't worry too much about it.

You could fix for 2 years at 2.95%
Your tracker will cost you 3.75% after yesterday's hike.

If you make the wrong call and keep the the mortgage for a full year, it could cost you 1% of €60,000 declining , so maybe around €500.

I would stay on the tracker for the flexibility and put your energy into deciding the best strategy on the big issue - the buy out bond.

Brendan
Click to expand...
Thanks Brendan
 
1)Existing tracker margin. ECB + 1.05%
2) If you have an additional mortgage on the same property, what is the rate? N/a
3) Amount outstanding on your mortgage €180k
4) Remaining term 23 years
5) Lender Ulster Bank
6) Value of your home €430k
7) Might you trade up or overpay your mortgage? No plans to trade up or overpay
8) Do you face any barriers to switching? No
9) What rates are you considering fixing at? 2 year fixed at 2.95%, 4 year fixed at 3.1% or 7 year fixed at 3.55%
10) Does your house have a high BER rating which might qualify it for a lower rate? Check it here or estimate it if necessary. Don't know
 
@carolywogs

With the ECB rate at 3%, you will soon be paying 4% and this could rise to 4.5%

But a margin of 1% with 23 years has a fair bit of long-term value

You should definitely not fix for 2 years. As you will lose the tracker for 21 years.

It's a close call whether your stay on your tracker or not. If you do decide to fix, then go for the 7 years.

But these rates could be increased at any time, so if you do decide to fix, do so today.

Brendan
 
Thank you Brendan. I'm torn. I can manage another 1% increase or so in the ECB rate so it would be worth sticking with it long term. But if it increases beyond that then it won't be great.
 
1)Existing tracker margin. ECB + 1.05%
2) If you have an additional mortgage on the same property, what is the rate? N/A
3) Amount outstanding on your mortgage €96K
4) Remaining term 11.5 years
5) Lender Ulster Bank
6) Value of your home €298K
7) Might you trade up or overpay your mortgage? No plans to trade up or overpay
8) Do you face any barriers to switching? No
9) What rates are you considering fixing at? 2 year fixed at 2.95%, 4 year fixed at 3.1% or 7 year fixed at 3.55%
10) Does your house have a high BER rating which might qualify it for a lower rate? Check it here or estimate it if necessary. NO

I am currently paying €848pm (3.55%) rate which is manageable, at present, I am also due to receive an inheritance of approximately 45k later this year and had considered paying something off the mortgage but I don't know what to do. Decision needs to be made in next 24hours.
 
@Whisper
A difficult one as you don't know what to do with the inheritance.

If you were clear that you were going to pay the inheritance off the mortgage, I would suggest fixing for 2 years as then any early repayment penalty would be very small.

However, as you are not sure, I think you should fix for 4 years or 7 years. The early repayment penalty is likely to be small anyway.

Brendan
 
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