Availing of 2.3% of Ulster Bank mortgage rate.

C

Curare

Registered User
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Hello everyone,
We took out of mortgage from Ulster Bank in 2016 Jan till 2023 on a seven year fixed at 3.7%.We are thinking of switching to the 2.3% in UB or move entirely to a new bank. We are not sure of the breakage fee . I have called UB BUT they stated they don't discuss breakage fee over the phone but will send a letter. As our MORTGAGE outstanding LVT < 60%.What is the best advice or option for us?
 
Hi
I took out a mortgage in 2017 - 3.6% 7 year fixed.
I switched a couple of months ago to the 2.3% fixed.
My breakage fee was 0.
I was about a year into the 7 years.
 
lexi82 said:
Hi
I took out a mortgage in 2017 - 3.6% 7 year fixed.
I switched a couple of months ago to the 2.3% fixed.
My breakage fee was 0.
I was about a year into the 7 years.
Click to expand...
Hi Lexi82,
i am just wondering if your old mortgage was with Ulster Bank?
 
Yes old mortgage was with Ulster Bank.
Just switched from 7 year fixed to 2 year fixed staying with Ulster bank.
It was very easy and straight forward.
 
Don't stress about it. It's not going to change anything.

Mortgages are priced a lot more competitively now than at the start of 2016. So even if there is a break fee, you should still save money by switching rate.

They can't quote them over the phone as they go to a team to price up. However, once the letter is created they will be able to tell you the fee if you phone again.

You will receive 2 separate letters from UB. It can be confusing.

The first is a list of rate options that you can move to. They will show the maximum break fee that you can be charged in the future for breaking out of the new rate. These are not your current break fee. They probably posted that today.

You will receive a second letter detailing your break fee.

Once you know the break fee, post details here if you want any further advice or help with calculations.
 
Thank you for the information Lexi82. Do you advise i go into the branch to discuss or wait for the letter to arrive?
RedOnion said:
Don't stress about it. It's not going to change anything.

Mortgages are priced a lot more competitively now than at the start of 2016. So even if there is a break fee, you should still save money by switching rate.

They can't quote them over the phone as they go to a team to price up. However, once the letter is created they will be able to tell you the fee if you phone again.

You will receive 2 separate letters from UB. It can be confusing.

The first is a list of rate options that you can move to. They will show the maximum break fee that you can be charged in the future for breaking out of the new rate. These are not your current break fee. They probably posted that today.

You will receive a second letter detailing your break fee.

Once you know the break fee, post details here if you want any further advice or help with calculations.
Click to expand...
Thanks for the information,I'll definitely post the details to the forum here to get further advice.Thank you once again.
 
As RedOnion said, there will be 2 letters, but they didn't come at the same time.
Once the break fee letter is generated, they should be able to tell you over the phone what the amount is.
I think I got the letter showing all the available options before the break fee letter so I rang up and they were able to tell me then.
Give it a week or so as I think letters come from UK.
Hopefully no breakage fee for you.
 
Thank you Lexi82, I only hope we will be lucky no to have to pay a breakage fee .I will keep you posted as soon as I receive the letter.
 
Another trick Curare is once you receive the letter and if the breakage is high to then get your solicitor to request your title deeds in order to switch. This sometimes triggers your existing bank to offer you a better rate with no breakage. It has worked for others in the past.
 
Last edited:
@Curare
There's a strong possibility there won't be a break fee, or if there is it'll be small.
The 5 year interbank rate now is at about the same level as the 7 year rate was in March 2016.
UB will use the exact rates which I don't have access to.
 
Bronte said:
Any trick Curare is once you receive the letter and if the breakage is high to then get your solicitor to request your title deeds in order to switch. This sometimes triggers your existing bank to offer you a better rate with no breakage. It has worked for others in the past.
Click to expand...
RedOnion said:
@Curare
There's a strong possibility there won't be a break fee, or if there is it'll be small.
The 5 year interbank rate now is at about the same level as the 7 year rate was in March 2016.
UB will use the exact rates which I don't have access to.
Click to expand...

Thank you Bronte,I received the first letter this morning as advised by RedOnion and Lexi82 indicating various rates options available, the letter further advised that i would receive another letter to give me the breakage cost letter shortly, for coming out of my fixed interest rate term. I will keep you updated.
 
Sorry for coming coming back to you late. We received tow letters as advised by you guys. The second letter arrived and was given a sum of €928.45 as breakage fee.I was only interested in the final amount as i did not read the entire letter that advised that the breakage fee was only valid for seven days and payment should be made. I assumed that it would be automatically applied to our outstanding mortgage balance. However after about a week i called the mortgage department to find out if the new lower rate had been applied but i was informed that we were still on the old higher rate as we have not paid the breakage fee.I asked if i could pay on the phone but was told the advised amount (€928.45) was no longer applicable but would need to await a new letter from their underwriter's dept to calculate the new breakage fee. Alas, a new letter arrived this morning and the breakage fee now stands at €280.57 which i have paid with alacrity.Am i not lucky not to have missed the seven days in the letter advising the higher rate :):)?
Thank you everyone.
 
Same happened here (thoughtthis was the bank not sending the info out) though I went from a couple hundred to zero break fee :)
 
That’s funny. The best 900 you never spent. Well done on your lower rate. Perhaps pay the same amount as currently to bring down the mortgage.
 
That is what we intend to do to continue to pay current amount such that the overall interest and term/year of the mortgage is reduced.
 
Hi there, im.looking for any opinions on switching from AIB to UBs 2.3% or possibly the 2.6% rate over a longer period. The 2 year period seems like a no brainer, my only concern about the 2.3% is i feel rates will still be on an upward trajectory in late 2020 at the end of the 2 year period as it appears they will start rising next year and when switching again then the fixed rates will have increased to less attractive options than even the 2.6%. I hope im making my point ok for people to understand it. Thanks in advance for any thoughts on this. I also dont know do i have to move my current account to avail of these rates.
 
@tonymac
Personally I think there is still enough margin available, and competition for market share, to prevent any increases in customer rates in the short term. What I mean is even if wholesale rates increase by 0.1%, or even 0.2%, the banks will still make enough without passing on that increase.
 
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