Switch to UB fixed ?

Techhead

Frequent Poster
Messages
99
im on a variable with AIB @2.95%. Thinking of moving to UB fixed @2.3% but worried about getting stuck there on their variable after the fixed runs out. Anyone else thinking the same move? Am I mad not to go for the lower rate?
AIB feels like a safe haven tbh!
 

MrEarl

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Messages
1,740
It's the same risk with any bank offering a Standard Variable Rate.

Once you finish the term of the fixed interest rate, you can move if you wish.

Traditionally, a large percentage of Homeloan customers on Standard Variable Rates have not moved, regardless of what rate their Bank applied, and hence the Banks continue to charge high SVRs.



If I was considering a fixed interest rate period, I would be asking myself:

- why am I doing this (is it cheaper than the current SVR, or is it for security against a potential interest rate increase) ?

- what happens if I need to break out of the fixed interest rate during the term of the fixed rate ?

- if I had to refinance to another lender after the fixed interest rate period ended, how much would that cost and what's the risk of me having to move ?
 

Gordon Gekko

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3,699
I fixed at 2.5% with UB for 5.5 years. At the end of the 5.5 years, I can move to whatever rates are on offer from UB. Or I could move. And I can repay up to 10% of the value of the outstanding mortgage each year (chance would be a fine thing).
 

DublinD

Registered User
Messages
44
I fixed at 2.5% with UB for 5.5 years. At the end of the 5.5 years, I can move to whatever rates are on offer from UB. Or I could move. And I can repay up to 10% of the value of the outstanding mortgage each year (chance would be a fine thing).
Is that the high value rate?

I'm just over a year into a 4 year fixed @2.6% (~36 months left) and plan to try roll into/break and fix again the 4 year 2.6% again if extended in June, giving me a total just over 5 years . at 2.6%
 

qwerty5

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Messages
252
Is that the high value rate?

I'm just over a year into a 4 year fixed @2.6% (~36 months left) and plan to try roll into/break and fix again the 4 year 2.6% again if extended in June, giving me a total just over 5 years . at 2.6%
That was my cunning plan too. I'm on the 2.6% rate at the end of 2017.
After 6 months as they extended the date for new customers so I rang them got the break fee (€0) and the form to choose the rate for another 4 years All grand.

As the date has moved on again I rang them a month ago for the break fee. This time its a couple of grand. So I'll just wait for the current time frame to run out and I'll reevaluate then.
 

DublinD

Registered User
Messages
44
That was my cunning plan too. I'm on the 2.6% rate at the end of 2017.
After 6 months as they extended the date for new customers so I rang them got the break fee (€0) and the form to choose the rate for another 4 years All grand.

As the date has moved on again I rang them a month ago for the break fee. This time its a couple of grand. So I'll just wait for the current time frame to run out and I'll reevaluate then.
So my plan might not work :( Have funding rates changed that much in a year to cause a high breakage fee? Did they supply R and R1 when asking for the breakage fee as outlined here: https://digital.ulsterbank.ie/personal/mortgages/fixed-rate-mortgages.html
 

qwerty5

Frequent Poster
Messages
252
I'm afraid I don't know the answers. It was a little while ago so I've disposed of the letter. I saw the fee and went "feck that".
 

Coldwarrior

Frequent Poster
Messages
158
That was my cunning plan too. I'm on the 2.6% rate at the end of 2017.
After 6 months as they extended the date for new customers so I rang them got the break fee (€0) and the form to choose the rate for another 4 years All grand.

As the date has moved on again I rang them a month ago for the break fee. This time its a couple of grand. So I'll just wait for the current time frame to run out and I'll reevaluate then.
Planning to do the same if the fixed rate term is extended beyond June provided there's no breakage fee.
 

HollowKnight

Frequent Poster
Messages
168
Just to check with you on this:
I'm on a fixed product due to end September 2022, if I ring them and break fee is zero, it may be possible to stay fixed until September 2023?
 

lledlledlled

Frequent Poster
Messages
224
I fixed at 2.5% with UB for 5.5 years. At the end of the 5.5 years, I can move to whatever rates are on offer from UB. Or I could move. And I can repay up to 10% of the value of the outstanding mortgage each year (chance would be a fine thing).
The problem with rolling onto a SVR once the fixed period has expired is if you don't like the bank's rate and want to move, you'll have to go through the paperwork torture again, pay legal fees etc.

If I was choosing between two banks I would generally go for the cheapest rate I can get. If that's a long term fixed rate, all the better for me, as I like the security that brings, although I ain't prepared to pay for the luxury.
If leaning towards a shorter term rate, I'd factor in which bank traditionally has high/low SVR to jump onto.
 
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