Mortgage switch advice: UlsterBank term ending 2021 \o/

[Hedgehog]

Hi all,

Fixed rate 5yr mortgage ends with UlsterBank at the end of the year.


Current UB mortgage: 26 yrs & 2 mths
Date you fixed: Dec 2016 - Start of mortgage
Period for which you fixed: 5 years
Fixed rate: 3.75%
Fixed until Dec 2021
Mortgage remaining: €138,523k
Current LTV: 58%
Mortgage: €696.24 pm


Just looking for advise on which lender to move to?

Reading these posts I'm thinking of a move to Avant.

Key Post - Should an existing Ulster Bank customer do anything before their mortgage is sold to permanent tsb?

Ulster Bank is nearly the cheapest lender at the moment while permanent tsb is the most expensive. Anyone who moves to Ulster Bank who is not on a tracker will find themselves paying a lot more when they move to permanent tsb. If you have a cheap tracker with Ulster Bank, you don't need to do...

www.askaboutmoney.com

I'm not sure what Avant are like to deal with (more research needed)

And I guess I'd want to be making moves now. The online UB portal has now (November) opened up allowing me to choose a new product, which of course I won't be using

Thanks all!

 

[skrooge]

Avant or ICS would be my suggestion. Both price match up to 5 year fixed.

Avant have the lower variable rate and allow 10% of the balance to be overpaid each year. However, there are some region restrictions.

ICS don't have the same geographical restrictions and allow up to 20% overpayment per year.

Assuming you're not in a position to aggressively overpay/be mortgage free in the next 5 years I'd say Avant just edges it.

 

[Hedgehog]

Great, thanks for that. I didn't spot ICS allow 20% per year.
I would be in a position to over pay, so that would sway it that way for me.

Plus ICS have online account access (according to bonkers.ie) so that's useful.

 

[Hedgehog]

Another question.
Any idea how long it might take to switch?

I assume I should be applying asap, I'd imagine most lenders are busier now then ever with UB and KBC leaving.

What happens if I'm delayed and it runs into next year?

 

[Brendan Burgess]

What happens if I'm delayed and it runs into next year?

You just pay the higher variable rate to Ulster Bank for a period.

Let's say it takes two months after the fixed rate deal ends.

Mortgage €138k
Ulster Bank rate :3.1%
Avant rate: 2%
Difference 1.1%
Annual additional cost €1,500
Monthly additional cost: €125

 

[Hedgehog]

Great, thanks Brendan. Simple.

Edit: I wouldn't be liable for any break fees would I?

 

[skrooge]

Break fees are only applicable to fixed rate mortgages.

 

[skrooge]

Plus ICS have online account access (according to bonkers.ie) so that's useful.

You got my hopes up there but I don't see anywhere for a customer to log in. Yes there is a broker area but I can't see anything for an existing customer.

Customer Service | ICS Mortgages | Residential Mortgages

The ICS Brand was established in 1864 and has remained a leading and trusted brand in the mortgage market throughout its 150-year history.

www.icsmortgages.ie

 

[Hedgehog]

You got my hopes up there but I don't see anywhere for a customer to log in. Yes there is a broker area but I can't see anything for an existing customer.

Gah! I was hoping there would be one, so much handier,

I see they also mention a fee for overpaying on a fixed too:

Alternatively, if you wish to maintain your repayments and reduce the term of your mortgage instead, you will need to send us an instruction in writing (signed by all parties to the mortgage) and post this to ICS Mortgages, PO Box 1077, Maynooth, Co. Kildare. Lump sums paid into a mortgage account are not refundable. If you are on a fixed rate mortgage, a funding fee may apply.

Flexible Options | ICS Mortgages | Residential Mortgages

The ICS Brand was established in 1864 and has remained a leading and trusted brand in the mortgage market throughout its 150-year history.

www.icsmortgages.ie

 

[skrooge]

All providers will calculate a break fee. These fees are governed by EU regulations. Depending on how market rates move they can range from 0 to substantial.

Most providers will allow some leeway. Your current provider, Ulster, allow you to overpay by 10% of the outstanding balance per calendar year. Beyond this a break fee may apply. Where it does this is capped at 6 months interest.

In the case of ICS 20% of the balance can be repaid before a break fee charge may apply. I don't believe they have an explicit cap to limit break fee charges.

Avant allow 10% overpayment but also cap the break fee at 2%.