In terms of the overpayment, you should tell them you want it to be a principal overpayment.
In terms of the repayment amount reducing, I do not have a fixed rate mortgage with UB, I have a tracker with them. They only seem to recalculate the repayment amount on certain occasions (from memory... interest rate change events, change of overpayment and every January even if nothing else has happened). I don't know that the same will apply for a fixed rate rate mortgage.
I have a fixed mortgage with UB. Currently I have a standing order set up to over pay by a comfortable amount each month. I only recently switched (2 months ago). So far, the direct debit I set up on opening the mortgage is still taking the same amount as agreed when we switched.Ah I see. I don't want to set up a direct debit as I can't guarantee I'd have it every month so I was hoping for a more informal setup of transfer it online when I have it .
I have a fixed mortgage with UB. Currently I have a standing order set up to over pay by a comfortable amount each month. I only recently switched (2 months ago). So far, the direct debit I set up on opening the mortgage is still taking the same amount as agreed when we switched.
I've only had two regular payments and overpayments and so far no.Does your monthly amount (not the amount you overpay) reduce at all? For example with aib if my repayment was 1000 in January and I paid 2000 (1000 repayment plus 1000 overpayment) , in Feb my repayment amount would be 995. Is this the case with ub?
I suspect then that you will need to inform them for each transfer you make.Ah I see. I don't want to set up a direct debit as I can't guarantee I'd have it every month so I was hoping for a more informal setup of transfer it online when I have it .
My reading of the OP's post is that (s)he does not wish the term to be recalculated, rather (s)he wishes the repayment to be automatically recalculated over the same term. I suspect the same approach though will probably do the trick.I'm on an Ulster Bank variable rate and overpay each month.
If you wish for overpayments to reduce the term of the mortgage, you need to ring them and ask for mortgage term to be re-calculated based on overpayments made to date.
You can also check what term is left here
https://www.switch.ulsterbank.ie/MMMWeb/ubr/faces/login.jsp
Yeah exactly, I want the term to stay the same but all extra payments to come off the principle.My reading of the OP's post is that (s)he does not wish the term to be recalculated, rather (s)he wishes the repayment to be automatically recalculated over the same term. I suspect the same approach though will probably do the trick.
No.are you losing out?
You're confusing terminology.Yeah exactly, I want the term to stay the same but all extra payments to come off the principle.
No.
All the banks calculate interest on the daily outstanding balance.
You're confusing terminology.
ALL overpayments reduce the principle balance.
But when fully processed, as it's an annuity loan, the bank needs to adjust either the repayment amount or the term. I suspect that UB don't trigger the recalculation on a fixed mortgage.
I am in the process of switching to ulster bank from AIB. I will be switching to the 2 yr fixed at 2.3%.
I'm thinking of doing similar myself, via BOI variable first, for cashback. Just wondering what swayed you to the 2 year fixed vs the 4 year? The 2 year is 2.3% and the 4 year is 2.6% - did the extra 0.3% do it over the extra 2 years of fixed price security? I'm humming and hawing about both and see Michael Dowling saying (https://www.irishexaminer.com/break...mortgage-warning-on-ecb-rate-rise-861492.html) back in August that it would be better to fix for longer term to avoid coming off the fixed term just as rates rise, as we assume they will in a year or so. Anyone thoughts on how "best" fixed term, with 5 years probably being the upper limit? I'd be doing similar to the OP, overpaying by the 10%.
@tom1ie
A bit off topic, but might be interesting to post to the switcher forum.
If I remember correctly you had a payment holiday in your mortgage. Did that cause any troubles switching to UB? E.g. did you gave to show 6 months repayments before you could switch?
Cheers, the lower rate is definitely a massive draw, 0.65% drop vs 0.35% drop for me.Well I was attracted to the lower rate and listening to a lot of commentary out there the EU economy doesn't seem to be going as strong as they hoped what with the Italian economy Brexit etc. So I don't think they'll raise interest rates in the next 2 years but then again I could be completely wrong .
I just went for the lowest rate available on the market while still being allowed to over pay.
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