Existing customers availing of the best Ulster Bank rate available

qwerty5

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Hi Gordon

Ulster Bank allows all existing customers to avail of whatever is on offer to new customers. So you will be able to get their best variable rate for your LTV and size of the mortgage.

Brendan

Hi Brendan. Does that apply to the Loyalty rates?
I'm on 3.1% as I'm on Loyalty Plus (SVR - 1.2%)
I was going to fix a couple of months ago on 2.99%
When I asked Ulster Bank what rate I'd go onto at the end of the term they said SVR. I pointed out that I'm on Loyalty Plus and would obviously like to go back to whatever that is at the end of the term. They said no. I could go onto SVR or choose a new fixed rate product.

I'm not ruling out the fact that I might have been talking to somebody incompetent. But I also don't want to gamble.

Before you suggest it, I'm not applicable for the 2.6% as my mortgage is less than required for those conditions :)
 
Hi Brendan. Does that apply to the Loyalty rates?
I'm on 3.1% as I'm on Loyalty Plus (SVR - 1.2%)
I was going to fix a couple of months ago on 2.99%
When I asked Ulster Bank what rate I'd go onto at the end of the term they said SVR. I pointed out that I'm on Loyalty Plus and would obviously like to go back to whatever that is at the end of the term. They said no. I could go onto SVR or choose a new fixed rate product.

I'm not ruling out the fact that I might have been talking to somebody incompetent. But I also don't want to gamble.

Before you suggest it, I'm not applicable for the 2.6% as my mortgage is less than required for those conditions :)

Hi qwerty5

I had the same conversation with an Ulster Bank mortgage adviser and his response was as follows

'That is no issue to go with the best loyalty rate available after the fixed term expires.The standard variable rate is just a default and can be changed at any time subject to loan to value criteria being 90% and under.'
 
First of all, if you are on 3.1%, you really should not be thinking of fixing at 2.99%. Yes, ECB rates will rise at some stage. But before that, Irish mortgage rates should fall either through competition or if and when Michael McGrath's bill is passed. If you qualified for the 4 year, 2.6% rate, it would be worth considering.

You are on this rate:

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  • >€200,000
  • Ulster Bank current account customer
  • LTV <80%

If you fix, you will roll onto the SVR but have the right to choose the best rate available at that stage.

If your mortgage amount is less than €200,000 when your fixed term expires, you would not be entitled to this rate.

If they no longer offer the Loyalty Plus Discounted Variable rate product, then you would not be entitled to it.


I think that the structure of Ulster Bank mortgage rates may cause them a big problem in the future. If for example, a ceiling of ECB +2% was placed on the Standard Variable Rate through legislation, then you would be on a rate of 0.8%. (I am not expecting that to happen, just pointing out a problem which they might have.) Of course, if that happens a contract specifying SVR -1.2% might be very valuable.

Brendan
 
I'd be very wary of taking any bank's assurances about my ability to revert to the preferential variable rate.

That worries me...
 
I have just received a letter from Ulster Bank outlining the new mortgage rates that are available for us. It is mind boggling. There are 21 fixed rate options and 12 variable rate options. Reading their Variable Rate Policy Statement, their SVR is not linked to the ECB, so I have concluded that they are a powerhouse to do what they want and when they want. I do not know about Michael McGraths new bill, if someone can enlighten me please? We would fall into the category of older existing borrowers and we only owe €39,000 on our home which is currently valued at about €350,000, hence I put on my glasses and a strong cup of coffee to decipher the myriad of mortgage rate options now available to us. We currently are paying 4.3%, so I have highlighted only 2 options I think we may qualify for: Fixing for 5 years at 3.19% reverting to an SVR of 3.8%. (Lowest Variable: 3.35% but you must have a Gold/ufirst private account whatever that is?)
If a bill is passed to cap the SRV at a low rate? ...should I hold out, or is this an effort by Ulster Bank to cash in before this happens?
 
Indigo we just got 3.2% variable - conditions being ltv <60% and salary is mandated to UB.
Ufirst account is a current account you pay to have and get a few perks. I had it as a staff account many years ago but didn't bother with it when I left the bank.
 
Thanks Marsha, I think we fall into that LTV category. We will be going into our local branch to discuss, so I needed to do my homework first. When we first took out the mortgage in 1986 interest rates were as high as 13%!
 
The Ulster Bank Loyalty Account gives you a rate of SVR - 1.1% for your LTV.

You have to open a current account to avail of it.

The current SVR is 4.3% , less 1.1% = 3.2%

If you don't want an Ulster Bank current account, the rate will be 3.5%.

The interest saved from opening a current account is €117 per year ( €39,000 @0.3%)

I don't see much point in fixing - with such a low mortgage, you might want to make a capital repayment which is easier to do if the rate is variable. But it's much of a muchness.

On a general point, people with small mortgages are paying very high mortgage rates and can do very little about it.

You could in theory switch, but, I am not sure if any other lender will accept €39,000.

Even at 3.2% you are paying about twice what you should be paying. So you are paying €1,200 a year interest instead of €600.

Brendan
 
Thanks again for your help. I tried to make an appointment with my local branch but you cannot call them directly, I get through to Scotland where they have to email the branch for you, so needless to say I am still waiting on a call back. However in the meantime I manage to find a number to talk to someone about our interest change and I will proceed to sign and send back the letter of authority to switch to 3.2%....but first I have to open an account for salary to be paid into. Then in the small print it says 'An up to date valuation, by a valuer on the banks panel, must be undertaken at your expense...honestly I'm wondering if it is worth our while to save 117 euro a year, but I will persevere. I suspect they deliberately make it difficult to switch and god knows how much a valuation will cost...they could just look on DAFT like everyone else....Negotiating what type of current account to have will be the next hurdle.
 
I thought that too. When my house was valued last year it was X, UB told me this when I rang them recently.
To move down to below 60% LTV my house has to have increased in value by 4% in a year and a half.

I'm living in a reasonable part of Dublin. On the media apparently my property value is skyrocketing (I know you don't believe everything you hear on the radio) but if the value has increased at half of the average then I've at least made the 4%. But no, when speaking with the bank I've to pay to get it valued. It does seem like a stalling tactic to stop people from saving money. I see it from their point of view on getting the valuation when the house is first purchased as the house could be in bits. I don't agree so much to get a new LTV.

And from my experience with valuers, one of the questions they ask when they see your house is
"What value are you looking for?" Hmmmmmm. I'm sure they're not fraudulent but as long as you're not looking for a stupid number, you'll get that value. The X value my house got valued at last year was the number I gave the valuer (it is similar to the prices that similar houses went for in my area).
 
They make it very very difficult to change to a lower rate with many conditions attached. It is infuriating. I wonder what our Financial Regulator makes of it all?
The rate is dependent on 1. Your LTV. 2. Switching your account to Ulster Bank. 3. Up to date valuation. Also in my letter there were a whopping 34 options to choose from in a variety of fixed and variable rate options with penal conditions. It is all so intimidating, I will take it up with the financial services ombudsman when I get a chance....and as was pointed out, even at a lower rate I'll only be saving the price of an average night out per year!
 
They make it very very difficult to change to a lower rate with many conditions attached. It is infuriating. I wonder what our Financial Regulator makes of it all?
The rate is dependent on 1. Your LTV. 2. Switching your account to Ulster Bank. 3. Up to date valuation. Also in my letter there were a whopping 34 options to choose from in a variety of fixed and variable rate options with penal conditions. It is all so intimidating, I will take it up with the financial services ombudsman when I get a chance....and as was pointed out, even at a lower rate I'll only be saving the price of an average night out per year!

I have to say I disagree with your sentiment. I have my mortgage with Ulster Bank, and recently switched to a lower rate.
It was all very easy and transparent: contacted them via "contact us" form on their website. Branch called me back after 2-3 days. I then received a letter with all the available interest rates (both fixed and variable).

If you want to get a rate based on a specific LTV, you need to get a valuation. This is not very difficult, in general.
If you want to get a rate that requires to have your current account with Ulster Bank, than you need to switch your current account to Ulster Bank. This is also not very difficult, but can be very disruptive for a few months.
If you go for a fixed rate, they outline very clearly what the breakage fee would be. I found this actually very helpful.
I found the sheet (despite the 3 dozen different options) quite clear and understandable to be honest. They clearly state the interest rate and monthly repayment based on that rate.

What exactly do you want to take up with the FSO? That Ulsterbank clearly outlines the criteria for the individual rates? That you have too much choice?
I am saving over €1000 Euro per year, and it took me about an hour to go through the different rate options. YMMV, of course, but I found it neither difficult nor intimidating.
If saving the "price of an average night out" (not sure how much that is) is in your opinion not worth the hassle, than don't go through the hassle. Your money.

I understand that financial matters are stressful for many people, but if so, go to an independent financial adviser (or by all means go to your local bank branch) and talk through it with a fellow human being.
But I do wonder what you expect from the bank, what exactly would your complaint to the FSO be?
 
Its what economists are calling 'Confusopoly' The bottom line is that interest rates are too high in this country compared with other countries, i.e. Finlands average mortgage rate is 1.09%. I am glad you are saving €1000 per year but how much did the valuation cost you? Also I feel strongly that I should not have to switch my current account to get a lower mortgage rate. In my letter of 21 fixed rate options and 12 variable, there were also varying conditions attached based on an arrogant assumption of me borrowing another €200,000! Ulster Bank could simplify it and make it more user friendly. The letter was like an old P.C. burdonsome, and unfixable. They should just move long standing customers onto the lower rate, without making us jump through hoops. Now I am 55 and
not old by any standards and I am well capable of sorting my financial affairs. I (We) have been paying a mortgage for 29 years, they should be rewarding us,
not confusing us. I have been through two recessions, so I have probably felt a bit more financial pain than you. Thankfully I have survived but I remain very dubious about Ulster Banks methods of negotiating rate drops with their customers. Also in fairness I am not going to save as much as you, but Ulster Bank aren't doing you any favors either!
 
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