Fixed rate ending with Ulster Bank

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PickerUpper

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I contacted a broker in late December who said he could organise the €1500 switching fee and we meet the other switching criteria but my problem is that we have a period house, about 130 years old.

We switched to Ulster Bank about 3 years ago, and they needed an up to date structural survey, which I got for about €800.
The survey noted some minor issues and some recommendations on maintenance which we are working through, but haven't done too much yet.

The broker ran this past Avant (& ICS who are also offering 1.95%). They said either a new full structural survey or an amended one with proof that some of the maintenance has been done. Either way, we're probably looking at least €500. As my legal fees will likely be c. €1000, is there any point in switching now?

Currently on 2.2% with UB, 19 years left, 25% LTV, balance c. €210k, overpaying 10% per annum, with the aim of clearing in 6 years~.
 
Paul F said:
@PickerUpper When did you fix with UB (month and year)? For how long? What is your monthly repayment (before any overpayment)?
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Fixed 2 years ago for three years so rate will expire in March 2023. There's no immediate need to switch now, as our loan will transfer to PTSB with no issues. I just thought it might be easier to do it now and benefit from a slightly lower rate for an extra year.

Monthly repayment is c. €1100, overpay of c.€1500 each month.
 
Wiresandmore said:
@PickerUpper - thanks for sharing that. We also have a period house, and with UB too. I hadn’t factored in a survey.

We have 18 months left at 2.5%, 400K outstanding, break fee will be 6 months interest (I’ve discovered the interbank rates were erratic when we fixed so we have to pay the 6 months cost). So cost to break is 5000 + legal + potential structural survey = 7300 or so, which would be 5800 with the Avant offer. We’d save about 180 per month I think. So net/net it probably still makes sense to move, I think.
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I haven't got a break fee quote from UB yet. My costs to switch would be the same as yours: break fee (?) + legal (€1000) + survey (€800) - €1500 switching contribution.

Maybe I should get the break fee calc from UB just to work it all out exactly.
 
PickerUpper said:
Fixed 2 years ago for three years so rate will expire in March 2023. There's no immediate need to switch now, as our loan will transfer to PTSB with no issues. I just thought it might be easier to do it now and benefit from a slightly lower rate for an extra year.

Monthly repayment is c. €1100, overpay of c.€1500 each month.
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If you don't switch to Avant before the end of March, you will miss out on the €1,500 cashback for switchers. But it sounds like you may not be able to switch at the moment because you need to get some maintenance done and then get an updated survey.

After March 2023, you will be at the mercy of PTSB's very high rates. If they are anything like today's rates, you will be paying around 3%. So you really should switch before then.

It sounds like you will need to do the maintenance and get the updated survey for any switch to be successful (unless you find another broker who thinks this won't be necessary). So maybe start on it now and hope that Avant extend the cashback offer. (I'm not saying that they will.)
 
PickerUpper said:
Fixed 2 years ago for three years so rate will expire in March 2023. There's no immediate need to switch now, as our loan will transfer to PTSB with no issues. I just thought it might be easier to do it now and benefit from a slightly lower rate for an extra year.

Monthly repayment is c. €1100, overpay of c.€1500 each month.
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Another thought on this: going with Avant (if you can get the maintenance and survey done) will save you the most money.

But a simpler alternative is to re-fix with Ulster Bank for 5 years at 2.35%. If you did that now, the break fee would be around €500. All other things being equal, the break fee will fall by about €36/month but the risk is that, if you wait too long, Ulster Bank will withdraw their mortgage products and you will not be able to re-fix with them.

If you do re-fix with UB now, in 5 years' time you'll be worse off by about €3k (versus switching to Avant now). But it's actually less than €3k because you won't have to shell out any money for the maintenance or survey.

The choice partly depends on whether you think you will be able to continue the large overpayments and so have your mortgage nearly cleared in ~6 years.
 
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