if your aim is to pay off the mortgage quickly why isnt the 48k to reduce the term?
Ulster Bank allow a 10% balance overpayment for free every year. They have a 7 year @3% and 4 year at 2.6%. OP could make the overpayments at no charge, have no variable component and pay a lower interest rate overall.
PS: don't worry about Ulster Bank and Brexit.
To me a long-term fixed rate makes sense if and only if: a) you are on a stable income which is not likely to go up; b) mortgage repayments are close to the limits of affordability for you.
In your situation I would roll with one-year rates and overpay by 10% every month. At the end of your fixed-rate term you will bounce onto a variable for a few days and at that point you can repay a lump sum without penalty. Then go back on a fixed rate.
You shouldn't overplan this too much.
There is no sign of a rise in ECB rates. So I think that competition will bring down rates further - especially for low LTV mortgages such as you have.
Yes, that's why 10 years might too long but it's a gamble
if I had to pay more, it would impact other savings (like college fund for ex)
I presume that "for ex" means for example and not that you are saving up to put an old flame through college?
You are borrowing money at 3% in order to invest it at 0% or a bit above. This makes no sense.
In what way are they dysfunctional? About to switch our mortgage to themAgreed. But only because he can switch if UB sells his mortgage and the new lender puts up the rates.
But Ulster Bank is dysfunctional. So if he has experienced this before, he probably should avoid them.
Brendan
Their computer system is creaking and people have lost access to their current accounts twice in recent years.
The people in arrears can't get to talk to anyone to try to sort out the problem.
Banks are generally not very efficient, but Ulster Bank just seems to be the worst.
Brendan
I suppose it will be relevant if we get into arrears on our mortgage though not something I’m planning on so fingers crossed. My parents have their mortgage with UB and have had their fair share of problems too. Our existing mortgage provider AIB are not exactly helpful either so I’ll take my chances with UB and their lowest fixed rates in the market!This is true, but is it relevant to someone looking to take a loan from them?
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