Overpaying Fixed Mortgage with Ulster Bank

S

Savvy

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I know that you can overpay by up to 10% on outstanding balance yearly but does this have to be one lump sum per year or can you make as many adhoc payments as you wish.
I think I could just request an additional regular amount but my overpayments may be a bit lumpy(!) during the year
 
Additional overpayments can be any way you like. I've done both regulator overpayments monthly or larger one of payments.

Something to keep in mind is there is no guarantee ptsb will honour the 10% overpayment option after your loan transfers. AFAIK it's not in the terms and conditions of your mortgage, it sits separate to this.
 
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thanks Skrooge,
I hadn't even considered that.

I've only just moved from a tracker to fixed term with UB and Brendan has posted elsewhere that fixed cases after approx mid-September will still go to AIB.
I'll have to check AIB's policy on this. I'm still within cooling down period(31 days) so can still return to tracker as not worth switching if I can't overpay.
 
Ah okay it's a tracker and going to AIB. The same issue is likely with them as ptsb. Ulster had one of the most flexible overpayment options compared to other banks.

A quirk with AIB and how they calculate break fees means for many of their customers they don't charge a break fee. However, I don't know how much of the following would apply given the mortgage didn't originate with AIB

Overpayment / re-fix flexibility of AIB's green 5yr fixed rate (and some other rates)

Moderator's note: Because of a quirk in how AIB calculate their break fee / early redemption charge, you can make unlimited overpayments on some of their fixed rates without penalty. Or you can break out of your existing AIB fixed rate and re-fix on a different rate, again without penalty. (You...
www.askaboutmoney.com
 
I’d be shocked if PTSB don’t honour the 10%. Banks are paranoid about stuff like that after the various tracker scandals. Taking away something like that is not worth the potential reputational damage it might cost. Easier to just honour it.
 
Just reviewing the documentation with the fixed rate offer and I think I would have to agree with you Gordon.

In particular Under important Information they have a number of points:

Point 5 relates to calculation of Fixed Rate Breakage Fee
Point 7 relates to overpaying by 10% without Early Redemption Charge.

It would expect that they couldn't change point 5 during the term - Certainly not to your detriment

Similarly a reasonable person should expect that the currently allowable 10% overpayment to carry across and that you would not be in a lesser position than you started with.

There was plenty of space on the pages to highlight if there was any doubt about this.
 
While it wouldn't be good PR they're between a rock and a hard place. If they keep it for Ulster costumers existing AIB/PTSB customers might complain about not having the same facility. Will Ulster mortgages be the tail that wags the dog or will the new lenders say these are our terms you can move somewhere else if you like?

The wording on the Ulster website is very non-commital.

"While we can reassure you that the 10% overpayment feature remains available and unchanged, we are unable to confirm until final arrangements are made with the new provider of your loan, whether this feature will continue unchanged when your mortgage is transferred."

Mortgages Support

Ulster Bank is closing. For help and support with your Mortgage queries visit the Mortgages page on our dedicated Customer Support Hub. We're here to support you through this change.
www.ulsterbank.ie www.ulsterbank.ie
 
@Savvy How long did you fix for?

Regarding overpayments (beyond the 10% annual limit if AIB honour that feature, or any overpayment if they don't), bear in mind that there won't always be a break fee – or if there is it can be quite modest. It all depends on how interbank interest rates move between now and the time you make an overpayment.

Whether or not AIB will have to honour the 10% overpayment feature has come up before. There is an argument that they are obliged to (see also here).

What is not in doubt is that AIB will have to continue to apply Ulster Bank's cap of six months' interest to any break fee. This is important if you move home or pay off your mortgage early.
 
Paul, I fixed for 5 years with the intention to put in decent overpayments to have the mortgage approx halved in that time(currently 180k),

I could just stick to the tracker and avoid any risks regarding overpayments but from my calculations it could result in as much as 8k of a difference in what is paid off the mortgage after the 5 years for my fixed payment.
 
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