Rang Ulster Bank and got a reduction from 4.3% to 3.3% - saving €1,200 a year

Discussion in 'Mortgages and buying and selling homes' started by Bigbird, Dec 7, 2017.

  1. Bigbird

    Bigbird Frequent Poster

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    Last edited: Dec 7, 2017
    Hi anyone experiencing this issue? We are looking at fixing our mortgage with Ulster Bank as the rates are more competitive than our current variable rate, however we are considering moving house next year if something suitable shows up on the market.

    I spoke with Ulster Bank (UB) today and they said that there is a penalty should I break the fixed rate mortgage,even if I sell the house and pay off mortgage. The "breakage cost quoted on a fixed rate is based on maximum of 6 months interest". I could waive the charge if I clear my exisisting mortgage and take out a new one with UB on the same day. The chances of that happening may be slim. It's possible but may take a lot of effort on a range of different people involved in the selling/buying process!

    Any helpful advice on what to do is very welcome!

    Best wishes

    BB
     
    Last edited: Dec 7, 2017
  2. RedOnion

    RedOnion Frequent Poster

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    632
    Hi BB, of all the banks, I think UB is the fairest when it comes to fixed break costs.
    Their break cost is based on the difference between the rate they can place funds on deposit for at the beginning Vs the rate they would get placing on deposit when you break for the remainder of the term.

    They also cap it at 6 months interest (not important in current interest rate environment, but they are the only ones with the cap).

    What rate are you currently paying, what rate to fix and for how long?

    Also, take a look at this key post: https://www.askaboutmoney.com/threa...nk-to-break-out-of-a-fixed-rate-early.204442/
     
  3. Bigbird

    Bigbird Frequent Poster

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    74
    Hi RedOnion! Thanks so much for your reply. I'm really grateful. My current rate is 4.30% (variable). The new rate would be 2.99% - fixed from next week until 31/3/21.
     
  4. Bigbird

    Bigbird Frequent Poster

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    74
    Any thoughts on what to do? I'm still confused despite reading threads on fixing.
     
  5. Brendan Burgess

    Brendan Burgess Founder

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    Can you not get a lower variable rate with Ulster Bank?

    What is your Loan to Value? It looks like it's up to 80% LTV.

    How much is your total mortgage? It looks as if it's less than €200k

    You can get a Loyalty Discounted Variable rate for 3.3%

    Brendan
     
  6. Bigbird

    Bigbird Frequent Poster

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    Hi Brendan, thanks so much for your reply. Yes the current LTV is below 200k. Roughly, 117k last time I looked. I will ring UB and discuss your suggestion with them. I was staying well clear of the variable rates as the fixed rates looked so good but considering our predicament that's a really helpful suggestion! Thanks again
     
  7. Bigbird

    Bigbird Frequent Poster

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    74
    Just called UB and they're sending information on the variable loyalty rates. We just need to tick the 3.3% box on the info sheet, ensure that one of our wages is mandated to UB current account and include our new current account number together with the sort code and we're good to go! I'm so delighted as my rate is dropping from 4.3% to 3.3% !!!! So grateful for the advice!!
     
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  8. Brendan Burgess

    Brendan Burgess Founder

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    33,357
    Hi Bigbird

    There are about 100,000 people paying between 4% and 4.5% who could get a discount as easily as you did. But they don't know about it.

    I try to get journalists to cover the topic, but they like to have subjects. If I am quoted saying "people should call their bank and ask for a reduction" not to many people pay attention. But if there is a story "I called my bank and got a reduction from 4.3% to 3.3% and now I am saving €1,200 a year , the readers sit up and pay attention. Would you be prepared to tell your story to a journalist?

    Brendan
     
    Bigbird likes this.
  9. MrEarl

    MrEarl Frequent Poster

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    1,301
    Well done Bigbird !

    That is a very good result for very little effort.


    Hello Mr. Burgess,

    Does this website have the ability to send a message to all registered members (on an opt in / opt out basis) ? Assuming it does, why not send a message out to all members here to make them aware of this opportunity and also, ask them to spread the word ? I think an occasional message on something like this would be very well received, given it benefits the consumer.
     
    Bigbird likes this.
  10. Bigbird

    Bigbird Frequent Poster

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    74
    Last edited: Dec 12, 2017 at 7:31 PM
    Sure Brendan, if it helps people save some hard earned buckaroos why not?!
     
    Last edited: Dec 12, 2017 at 7:31 PM