Ulster Bank 10% Fixed Rate Overpayment

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lexio7

Registered User
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Hello

I am currently an UB customer on a fixed mortgage rate. I make regular overpayments when I can. UB allow 10% overpayments per year.

I cannot seem to find this term in my mortgage contract.

Does anybody know if this 10% term is buried in the contract?

The reason I ask is I am considering taking another fixed rate with UB before PTSB buy my UB mortgage.

My worry is this 10% overpayment benefit will be revoked.

Does anybody know if this may be the case?

Thanks
 
lexio7 said:
My worry is this 10% overpayment benefit will be revoked.
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I have the same facility with BoI. It's not in my contract either and my assumption is that they can withdraw it at will if they want.

Most lenders provide a facility for overpayment though and it's a (reasonably) competitive marketplace so I'd be surprised if it got withdrawn.
 
@Wiresandmore That's not exactly what @lexio7 asked. They asked whether the 10% facility will be kept by PTSB. Ulster Bank's FAQ says:
Will I be able to avail of the 10% overpayment feature on my fixed rate when my mortgage is transferred to Permanent TSB Group?

While we can reassure you that the 10% overpayment feature remains available and unchanged, we are unable to confirm until final arrangements are made with the new provider of your loan, whether this feature will continue unchanged when your mortgage is transferred. If you wish to make an overpayment, please log on to Manage My Mortgage.
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Just in case it's needed in future, I attach a printout of the website today.
 

Attachments

  • Ulster Bank website 17th March 2022.pdf
    1.1 MB · Views: 373
Paul F said:
PTSB don't allow any overpayments without penalty, i.e., you have to pay the pro rata break fee.
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Well, I‘ll have to hope they do offer the 10% option. That said, the max UB figure is 6 months interest, I’ve moved part of the mortgage to 2.2% so it’s effectively 1.1% fee to redeem, I think I can live with that. The remainder will go variable in Oct 23 but it’s a relatively smaller sum and I can focus on paying it off first.
 
@Wiresandmore Is there anything stopping you from switching to Avant's 1.95% 7-year fixed rate? Or their 2.1% 10-year fixed rate?

If you still have some of your mortgage on the old UB fixed rate, your break fee should be much lower than it was when I generated an estimate for you back in January.

And if you start the switch to Avant before the end of March and use a broker who is an Avant "Gold Partner", you are eligible for €1,500 cashback.
 
Thanks, and yes, the break fee was very much lower, in fact more or less net neutral over the remaining 18-month term.

I switched 65% of the mortgage to the UB 2.2% rate with a deliberate plan to pay off the remaining 35% when it moves to variable Oct 23. That gets me below a specific threshold I’ve been targeting and leaves the payments very manageable through to 2027 when I should be able to pay most of that off too.

I spoke to 2 brokers and it didn’t seem worth it to save a relatively small monthly sum but lose the flexibility of paying down a significant sum in the coming 2 years. Also the fact I could literally move to 2.2% with simply a signature was very attractive vs. the hassle of a new application with Avant.
 
Link to PTSB's overpayment options below.

I'm a PTSB customer using the regular overpayment option. I pay an overpayment each month, which builds up as credit on our account reducing interest. I'm hoping to pay off our mortgage earlier than the contractual term, however I've flexibility to stop / reduce overpayment at any time. I can also use flexible options.

Mortgage Overpayment Options | permanent tsb

Clear your mortgage sooner than originally planned using the mortgage overpayment. Regular payments and lump sum repayments available.
www.permanenttsb.ie www.permanenttsb.ie
 
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Overpayment Options​

A. Lump Sum Payment: If you’ve received a bonus or an inheritance or any other large amount of money, you can put that lump sum towards your mortgage to reduce your monthly repayments or the term.

B. Regular Overpayments: Regular overpayments are where you make an overpayment on your mortgage. This allows you to reduce the term of your mortgage and pay less interest overall or build up credit on your account to allow you to take a payment holiday at a future date.
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It's interesting that this credit is only mentioned in relation to regular overpayments.

Does that imply that lump sum payments do not build up a credit.

If you are paying a lump sum, just say that it is a regular overpayment for one month only. Don't reduce your term or the amount of the repayment.
 
Wiresandmore said:
I switched 65% of the mortgage to the UB 2.2% rate with a deliberate plan to pay off the remaining 35% when it moves to variable Oct 23. That gets me below a specific threshold I’ve been targeting and leaves the payments very manageable through to 2027 when I should be able to pay most of that off too.
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Do you mean that you expect to almost clear your mortgage in 2027?
 
Paul F said:
Do you mean that you expect to almost clear your mortgage in 2027?
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I expect it to be very substantially lower (target is balance of around 100K). I had expected to make use of the 10% overpayment option but will have to take the 1.1% hit if PTSB restrict overpayments as per my comment above
 
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