Key Post I have an Ulster Bank tracker – should I consider fixing?

[Salvadore]

Hi

I’ve been trying to get a response from the pre-ulster section of AIB with details of how much a fixed rate mortgage repayment but I’ve been getting the runaround. I’m currently on a tracker.

Would be grateful if anyone here could advise whether it’s worth my while to fix.

My details are:

1) Existing tracker margin. ECB + 0.85
2) Amount outstanding on your mortgage €39,000
4) Remaining term 2 years 2 months
5) Lender - Ulster Bank
6) Value of your home - €900000
7) Overpayment? Never Currently pay 1546 monthly
8) Do you face any barriers to switching? No
9) What rates are you considering fixing at? Havent really looks into details yet
10) high BER rating No

Thanks

 

[Brendan Burgess]

I presume that you have not yet moved to AIB?
If not, you can fix at 4.6% with Ulster Bank until Dec 2025.
But as that takes you beyond the maturity date, I don't think that they will let you fix.

So you are currently paying 5.35% or .75% more than you would be paying if you fixed.

0.75% @ €39,000 = €300 per annum.
It will be less as you are paying down the capital, so about €200 extra in the next 12 months.

And if ECB rates fall, the would be even less.

No need to worry about it.

Brendan

 

[Salvadore]

I presume that you have not yet moved to AIB?
If not, you can fix at 4.6% with Ulster Bank until Dec 2025.
But as that takes you beyond the maturity date, I don't think that they will let you fix.

So you are currently paying 5.35% or .75% more than you would be paying if you fixed.

0.75% @ €39,000 = €300 per annum.
It will be less as you are paying down the capital, so about €200 extra in the next 12 months.

And if ECB rates fall, the would be even less.

No need to worry about it.

Brendan

Thanks Brendan

It’s already moved to AIB a couple of months ago.

Was looking at a two year fixed to take me towards the end of the term

 

[Brendan Burgess]

The AIB two year rate is 4.45% so the same calculations apply.

It's a complete coin toss.

You will save a bit in the short term but if ECB rates fall soon, you could lose out.

But either way it will be only by a couple of hundred euro.

Rather than think too much about it, why not just go ahead and fix.

Brendan

 

[Salvadore]

The AIB two year rate is 4.45% so the same calculations apply.

It's a complete coin toss.

You will save a bit in the short term but if ECB rates fall soon, you could lose out.

But either way it will be only by a couple of hundred euro.

Rather than think too much about it, why not just go ahead and fix.

Brendan

Many thanks Brendan