I pay no interest either although there is a €2 monthly charge on the facility account!Ah yeah, fair enough, I realise it’s highly unlikely for anything like that to happen. I just don’t see how they are making anything but a loss on this, in my case anyway. I’m not paying any interest or bank charges on this and don’t intend on doing so for the remaining term of 20 years. I guess we’ll see how this plays out over the next while. But if they are happy to continue doing this (or find another Financial Institution to take the mortgage on) then I’m also happy.
That’s pretty nuts alright! I’m guessing your offset account is a current account? I have 3 savings accounts and they are not charging me anything for them, so far at least.I pay no interest either although there is a €2 monthly charge on the facility account!
They never seem to have made decisions based on logic as to whether something like that was profitable or not in some individual cases. A crazy situation years ago was where customers legal fees were paid and I think there was a cash incentive to move mortgages, similar to now, but it also applied between UB/First Active which were both owned by RBS so you could be switching back and forth to your hearts content and there was not an extra bob in it for RBS only costs each time, mad stuff! Logic would say it should only have applied to non RBS banks switching to UB/FA
Wow, that is interesting. Obviously just because this happened with Danske doesn’t mean that UB will do the same thing. But very interesting to see another financial institution taking that approach and pretty recently too. I guess it depends on a lot of things, how many of these offsets they have, remaining terms, how badly UB just want to be finished with the Irish market etc. Time will tell.Danske were in the same situation with Offset Mortgages a few years ago as Redonion referred to earlier in the thread. Here is a link to another thread about their efforts to solve that problem.
Danske Bank offset mortgage - offered 30% discount to clear early
Recently I received an offer from Danske bank offering approx 30 % writeoff if I move away from them as they want to shut non corp banking. Should I accept as approx 60 k left on mortgage?www.askaboutmoney.com
I would expect that if Danske had no option except to offer a substantial discount, Ulster will be in the same position. If they had found another institution willing to take overnight the offset mortgages I'm sure the deal would have been done by now. They probably don't want to offer the discount until they've offloaded the rest of their mortgages or they risk being inundated with other customers looking for the same.
I had both types, the current facility account and the savings accounts, up to 5 accounts if I remember correctly could be offset, I have closed all the savings bar one and left it and the current/facility account there.That’s pretty nuts alright! I’m guessing your offset account is a current account? I have 3 savings accounts and they are not charging me anything for them, so far at least.
As a product it seems like the Offset Mortgage is very advantageous to the customers who took one out. Most bank products are heavily skewed towards making the bank a lot of money. Seems like they got this one wrong. Not that I’m complaining, long may it continue!
I've seen a lot of people asking for this over the years. A while ago, for myself, I did a bit of digging and found a digital copy of it so happy to share those links here....Does anyone have a copy of the First Active Ts and Cs for the offset mortgage that applied in 2008. I'm interest in any part of it that relates to the availability facility and being able to move the mortgage to another property.
You're welcome, I'm glad it helps. As I mentioned earlier, the date on this one, as shown in the footer at the bottom of the 3rd last page (page 25), is 25/10/06. Screenshot attached (with my highlighting added). To be clear, Ulster Bank didn't supply this directly to me, I found it on the Way Back Machine which I have linked to in my previous post.That is absolutely fabulous, I can't thank you enough. I have spent over two years trying to find that copy. UB said they didn't have it. Was the one they gave you dated 2005 or later?.
You're welcome, I'm glad it helps. As I mentioned earlier, the date on this one, as shown in the footer at the bottom of the 3rd last page (page 25), is 25/10/06. Screenshot attached (with my highlighting added). To be clear, Ulster Bank didn't supply this directly to me, I found it on the Way Back Machine which I have linked to in my previous post.
I've also attached some scanned snippets of the Letter of Offer which do not have any personal information in them. The first snippet just shows the header so you have contact details (although I'm sure you have these already) and you can see the title of the document. The other 2 snippets (I've added highlighting) show section 1, which says it is part of the mortgage offer (remember, this is the contract you signed with the bank, you would have signed it at your solicitor's office) and section 9 which says you can keep the mortgage if you move house.
Again, hope it helps. There's going to be a lot of people with a lot of questions about these mortgages over the next while, I recommend that people ask the bank for their signed Letter of Offer now as it may become very difficult to get it later depending on what the plan for these mortgages turns out to be...
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