Blackrock1
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Just logged in this morning and our rate has been updated to 2.2% fixed for 5 years, we sent the letter last friday.
How long does it take to Re-fix with UB
- Thread starter Lisalefteye
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Midtablemanager
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I was lucky that mine was smoother but tbh was fully expecting that run into issues like you!
Lisalefteye
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I see the new rate has been applied on my manage my mortgage page today, so 15 days from initial phone call to having the new rate applied. Thats very efficient to be fair. Haven just got back to us yesterday (10 weeks after we submitted all docs to broker) with an approval in principle and looking for more up to date bank statements as so much time has passed!
You can choose any of their fixed rate options that apply to you (some have different rates for different LTVs, or for higher-value loans) - so, up to 10 years maximum.
Edit - D'oh, read that as you asking how long a term they would allow, not for how long the facility will be available. See @Paul F's reply below.
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This is only a guess but I would say that they will allow you to re-fix almost right up to the point where the mortgages are officially transferred to Permanent TSB. If they did not allow this, they would be forcing people to roll off onto their variable rates, which are much higher than their fixed rates. I assume that they would not want the heat that this would generate from the CCPC, given how absolutely terrifying they are
On the other hand, people whose mortgages are now managed by Pepper, etc., do not have the option to re-fix, so maybe Ulster Bank will withdraw their fixed rates before the mortgage sale.
Vulture funds don't offer fixed rates
Charlie Weston has an article on this issue in today's Indo. https://www.independent.ie/business/personal-finance/property-mortgages/homeowners-whose-mortgages-were-sold-to-vultures-face-rate-rise-41769141.html Large numbers of people whose mortgages have been sold to vulture funds now find...
www.askaboutmoney.com
Who knows when they will pull that rug. I'd be all over it, like Oprah on a ham. I paid a €54 break fee and re-fixed last week @ 2.35% till Oct 2027. All very straightforward.
I’ve done it already myself and found it exceptionally straightforward. Reason I’m asking is to try and do it all over again in a few months time to lock in another few months provided break fee remains low.
Thanks for the opinions. Hopefully they’ll keep offering it into the new year but we’ll have to see!
Blackrock1
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i dont think the rates will stay at current levels too much longer
We rang up Ulster Bank in mid-June to request a break fee and term sheet. It took us about 2.5 weeks to receive anything in the post. We sent back the term sheet immediately and it took perhaps another 5-7 days for the online portal to update. We received a confirmation letter 3-4 days after that. Quite a long-winded process for a simple instruction, if I'm being honest. There was nothing in their correspondence that we couldn't find online, the break fee was €0 as we had already estimated ourselves, and anyway the break fee is mechanical and should have been made available to the person on the phone when we contacted the bank to begin with. Out-of-date technology and processes.
Wiresandmore
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Are UB still offering the 2.2% 5-year fix?
newirishman
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Look here: https://www.ulsterbank.ie/mortgages/mortgage-rates.html#fixedrates
And yes. if LTV < 80% and loan value > 250K
LTV < 60% gives a slightly better follow-on rate (not that it matters much come Oct 2027)
Wiresandmore
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Confirming I was able to get a rate sheet to switch, arrived 3 days after phone call, pretty much as I had experienced in the past. Only issue was I was on hold for a very long time to get to speak to them in the first instance, almost an hour. That was much, much longer than in the past.
I don't know if anybody managed to do this but be aware that the deadline for applying for a topup with Ulster Bank is 26 August 2022.
The risk is that while you wait for the topup to be approved, Ulster Bank could put up their rates.
I emailed UB last Friday about refixing a 5 year that has 3.5 years to run back to 5 years. They sent me all the forms with options ranging from 2 years fixed to 10 years and variable etc. However there is nothing about a breakage fee. Do I have to request that separately? I assume so. The forms I have must be sent back within 10 working days. So I’m wondering will that give me enough time to determine the breakage fee in writing?
Thanks!
Thanks!
You will receive two separate letters from Ulster Bank a few days apart, and their structure and wording can lead to confusion. Look for the line that says: "To break out of this fixed rate early, you would have to pay a fee of €X". That amount is your break fee. Ignore all other references to break fees.
When did you receive the forms?
Ah okay that makes sense thanks. I received the first set of forms Tuesday having emailed UB on last Friday. The only form that arrived is their current interest rate offerings for various terms, it also gives indicative break fees for each option (based on six months interest), but makes no mention of the break fee for the current loan. But two separate forms make sense now. Thanks.
The only other thing I’m struggling with is whether to re-fix for 5 years at 2.2% or go 10 years at 2.8%?
The 0.6% difference seems a lot now. But in essence it could be one increment of many by the ECB. In five years if ECB rates are 6 or 7 percent then 2.8% looks like a bargain! But it makes a current difference of €115 a month, which for the next five years will cost €7,000 more.
I have 18 years left on a 400k mortgage with a 50% LTV and have no intention of ever moving house again! Somehow my gut tells me the five year option is the better one though.
I guess short of a crystal ball no one knows, but realistically will we ever see 2% rates again in our life times? Or if there’s a sharp recession will things end up back down at 0%. It’s a dilemma that in hindsight will seem obvious!
The 0.6% difference seems a lot now. But in essence it could be one increment of many by the ECB. In five years if ECB rates are 6 or 7 percent then 2.8% looks like a bargain! But it makes a current difference of €115 a month, which for the next five years will cost €7,000 more.
I have 18 years left on a 400k mortgage with a 50% LTV and have no intention of ever moving house again! Somehow my gut tells me the five year option is the better one though.
I guess short of a crystal ball no one knows, but realistically will we ever see 2% rates again in our life times? Or if there’s a sharp recession will things end up back down at 0%. It’s a dilemma that in hindsight will seem obvious!
@JanusGold You have made a mistake that lots of people make when estimating savings. You will actually be better off by about by about €10,900 after five years if you go with the 5-year fixed rate. That is because not only will your monthly repayment be lower, but your balance after five years will also be lower.
In all other respects your analysis is basically sound. But note that if inflation remains high for a few years, the €10,900 in savings will not be worth as much in real terms over the next five years and longer (see this thread).
Note that if you fix for ten years, you do not have to worry about an extremely large break fee in the future if you break before the ten years are up. That is because the calculation behind the "indicative break fees for each option (based on six months interest)" that you spotted in your letter from Ulster Bank is part of your contract. So this cap of six months' interest cannot be removed by Permanent TSB when they take over your mortgage (see here).
There is no single right answer to the decision but you can be pretty sure that if you fix for five years you will want to switch to another lender at the end of the fixed period. That is because Permanent TSB discriminate between new and existing customers, i.e., their best rates are not available to existing customers. (You may also want to switch at the end of the ten-year fixed rate but it probably won't matter as much, as there will only be 8 years left on your mortgage at that point.)
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