With all the uncertainty regarding the transfer of Variable Mortgages in Ulsterbank I've been trying to decide the best option for my Mortgage and Sub Account.
There is currently a remaining term of a little over 18 years, my 2 accounts will go back to Variable when fixed rate is up. My LTV is less than 40%.
Sub Account was fixed for 5 years earlier this year at 2.35% so happy with this for now as it represents less that 20% of the total mortgage.
Main Account has a balance of circa 83.5k currently on a 2.6% fixed rate until June 2023.
Ulsterbank currently have a 10 years fixed rate of 2.8% which appears to be the best fixed rate over that term.
My thoughts are to pay a penalty which will be a maximum of 6 months interest roughly €1085 or so and then re-fix for 10 years at the 2.8%.
My reasons for doing it is that if the loans are sold to PTSB (rumoured) then in June 2023 I will switch to their variable rate which is currently 3.95% and possibly will be higher by then. My main reasons for doing this is that I financially cannot afford to take a large interest rate hit over the long term which may make my repayments impossible to make so although I would pay a penalty now and a small interest rate increase I think it would give me 10 years of security knowing the payments due on this.
Does this make sense to do or am I missing anything? I don't forsee any big change in my personal financial circumstances any time in the future, thanks
There is currently a remaining term of a little over 18 years, my 2 accounts will go back to Variable when fixed rate is up. My LTV is less than 40%.
Sub Account was fixed for 5 years earlier this year at 2.35% so happy with this for now as it represents less that 20% of the total mortgage.
Main Account has a balance of circa 83.5k currently on a 2.6% fixed rate until June 2023.
Ulsterbank currently have a 10 years fixed rate of 2.8% which appears to be the best fixed rate over that term.
My thoughts are to pay a penalty which will be a maximum of 6 months interest roughly €1085 or so and then re-fix for 10 years at the 2.8%.
My reasons for doing it is that if the loans are sold to PTSB (rumoured) then in June 2023 I will switch to their variable rate which is currently 3.95% and possibly will be higher by then. My main reasons for doing this is that I financially cannot afford to take a large interest rate hit over the long term which may make my repayments impossible to make so although I would pay a penalty now and a small interest rate increase I think it would give me 10 years of security knowing the payments due on this.
Does this make sense to do or am I missing anything? I don't forsee any big change in my personal financial circumstances any time in the future, thanks