Ulster Bank “Amazing Rates” campaign - 2.6% fixed for 5 years

H

HC2015

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A tv ad from Ulster Bank caught my eye earlier so I’ve checked out their site and have requested a call back.

Current situation- LTV of 71% on a property very recently valued at €420,000. Mortgage is with PTSB on SVR of 3.7%. We’re currently overpaying so term of 19 years but should be done in 14.

UB’s site is giving me a quote of 2.6%, fixed for four years.
Obviously won’t be able to overpay but can fix based on repaying within 14 years, or keep to the 19 and then have a lump sum when the 4 years ends that should be beneficial when shopping around at that stage.

Too good to be true?

As an added complication, we’re still trying to establish if we are part of the PTSB tracker issue (came off fixed rate to only be given offer of very inflated tracker rate which was prohibitively expensive when compared to the SVR they also offered). This has been going on now for over three years and even struggling to get Paraic Kissane’s office to respond to me to not holding out much hope and sick of being in limbo.
 
Hi,

There's a good discussion on it in the thread below. UB allow overpayments, although there's a cap on it. I believe it's 10% of the balance.

https://www.askaboutmoney.com/threa...nch-4-year-fixed-mortgage-rate-of-2-6.204325/

There are also threads comparing this to the 19 year rate available from KBC. And have a look at the key posts about break fee calculations.

I can't help re the tracker review element.

Any other questions you still have just shout and I'll do my best to help.
 
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Hi .. I've currently with Mars capital and on a rate of 3.65%. They have advised me that one of the conditions of buying the mortgage from the PRTB was that the interest rate will never go above this rate.

I'm considering moving to Ulster bank for the 4 year fixed at 2.6%.

Is it advisable to move or stay on a rate of 3.65% for the next 22 years?

Any advice appreciated.

Con
 
It's a interesting case . You're talking about a 1.05% savings in the first four years versus a higher but capped rate for the full 22 years. Forgetting about the Ulster rate I think most people would be happy to cap their rate at 3.65% over the lifetime of their loan. The temptation is to go for the short-term gain at 2.6% but in 4 years interest rates will more than likely be (much) higher than they are now. With ECB rates at historically low levels it would only take 4 interest rate increases (of 0.25%) to see variable rates above your current rate. How long or short it takes to get that far is anyone's guess but even the most pessimistic person would likely say it will happen in the next 22 years.

The more relevant question is how manageable is your current mortgage? are you overpaying your mortgage at present? Can you contractually overpay? How would you cope if rates were 5%? Do you intend to stay in the property for significantly more than 4 years? Would you meet the LTV requirements (apologies I dont know much about Mars capital but my guess is they bought someones old loan book whcih suggests you've had all the pain of the property crash)?
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con1975 said:
They have advised me that one of the conditions of buying the mortgage from the PRTB was that the interest rate will never go above this rate.
Click to expand...
I would look for that in writing if I was you - it doesn't sound right.

Would I take a 22-year fixed/capped rate @3.65%?

Probably. But I would want to be absolutely sure that was the deal on offer.
 
Thanks for the replies.

skrooge said:
how manageable is your current mortgage? are you overpaying your mortgage at present? Can you contractually overpay? How would you cope if rates were 5%? Do you intend to stay in the property for significantly more than 4 years? Would you meet the LTV requirements
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Our monthly mortgage repayment is €1300 which is manageable. We are not in a position to overpay on the mortgage. If interest rates rose to 5% I'm sure we could make it but belts would have to be tightened. We will most likely be staying in the property for life. The house is valued at €420k with a mortgage of €230k so we would meet the LTV requirements.

Sarenco said:
I would look for that in writing if I was you - it doesn't sound right.
Click to expand...

I'll contact Mars Capital again after the weekend to clarity the rate.

Thanks again for the help.

Con
 
The fact it is your forever home and given you're not in a position to overpay the current mortgage would suggest to me you may be better off with the certainty of your current mortgage rate. Assuming as @Sarenco says that the terms are there in writing.

If it turns out that your current rate is not capped you might want to consider would be KBC's 10 year fixed @ 3.05%.
 
How are people getting fixed mortgage rates for greater than 10 years? I don't see any bank advertising such rates.
 
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