Ulster Bank 2.6% for 4 year fixed rate now available for FTBs up to 90% LTV

Brendan Burgess

Brendan Burgess

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Ulster Bank has published a very complicated new fixed rate table today.

It appears that the following categories can now avail of the 2.6% fixed rate

(1) First Time Buyers
borrowing €200,000 or more,
with LTV of up to 90%
and a Loan to Income ratio of up to 3.5 times;


(2) customers switching their mortgage from another lender
without seeking any additional top-up
who are borrowing €200,000 or more,
with LTV of up to 90%; or

(3) all other customers borrowing €200,000 or more,
with LTV of up to 80%
and a Loan to Income ratio of up to 3.5 times.


So who will not qualify for this rate?

Anyone borrowing less than €200k



First time buyers seeking an exemption from the Central Bank rules

Switchers seeking a top up

Second time buyers borrowing more than 80%
 
How does this compare with Bank of Ireland for 90% mortgages?

upload_2017-11-7_12-38-27.png


For bigger mortgages, the effective rate for Ulster Bank rises, but for BoI the effective rate stays the same.
 
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Will customers on an existing residential mortgage but who are renting out that house qualify under point 2 above?
 
Is it not strange that they don't have more differentiation for ltv bands, right up to 90% now
 
I suspect the 90% is to do with the CBI rules. If they give you an exemption, they'll charge you more for it.

What I find more strange is that EBS and BOI have removed their LTV bands for fixed rates.
 
Hi all,

Looking to switch my mortgage. Currently with EBS - variable @ 3.5%.

House value 450k

Outstanding mortgage 240k

We currently overpay the mortgage by 1,000 a month so are thinking of fixing majority and leaving a little variable so we can continue to overpay.

Confused as to what would be better.

Ulster Bank 4 year fix at 2.6% with a variable of 3%. They give €1,500 for switching.

Bank of Ireland 5 year fix at 3% with a variable of 3.9%. They give 3% cash back, 2% now and 1% after 5 years.

Any other options that I should consider?

Thanks in advance for any thoughts.
 
Dublin2017 said:
Hi all,

Looking to switch my mortgage. Currently with EBS - variable @ 3.5%.

House value 450k

Outstanding mortgage 240k

We currently overpay the mortgage by 1,000 a month so are thinking of fixing majority and leaving a little variable so we can continue to overpay.

Confused as to what would be better.

Ulster Bank 4 year fix at 2.6% with a variable of 3%. They give €1,500 for switching.

Bank of Ireland 5 year fix at 3% with a variable of 3.9%. They give 3% cash back, 2% now and 1% after 5 years.

Any other options that I should consider?

Thanks in advance for any thoughts.
Click to expand...
Hi, a handy feature for you is that UB allow early repayment of up to 10% of the balance each year without checking if a break fee applies. So you could fix the lot, and overpay without penalty.
 
In simple terms,

Ulster Bank €240k @ 2.6% =€6,240 x 5 years = €31,200 - €1,500 = €29,700

Bank of Ireland €240k @3% x 5 years = €36,000 - (3% of €240k) €7,200 = €28,800

If you borrow €24,000 on variable, you will pay Bank of Ireland about €900 over two years and Ulster Bank around €700.

So there really isn't that much in it.

I would prefer Ulster Bank to BoI as when you exit the fixed rate, the variable rates are likely to be lower. I don't like Bank of Ireland forcing people to fix by charging high variable rates.

Add in Red Onion's point, and it seems like Ulster shades it.

Brendan
 
Did UB not have an exception when comes to overpayments when came to this product, limiting it to 1k per annum? Saying that I can't find on website just mentions the 10%. Im on that rate so will enquire tomorrow just to be sure, I assumed I was limited.
 
So seems below term is gone in case anyone unaware, it was definitely there back when the 2.6% rate was introduced a couple of months ago but rang to double check and all fixed have blanket 10% overpayment which is great!



I see that Ulster Bank allow you to make an over payment of 1000 a year against a fixed mortgage without any penalty. I don't know what level of over payment you were considering, but may be worth noting in this case.
 
Dublin2017 said:
Hi all,

Looking to switch my mortgage. Currently with EBS - variable @ 3.5%.

House value 450k

Outstanding mortgage 240k

We currently overpay the mortgage by 1,000 a month so are thinking of fixing majority and leaving a little variable so we can continue to overpay.

Confused as to what would be better.

Ulster Bank 4 year fix at 2.6% with a variable of 3%. They give €1,500 for switching.

Bank of Ireland 5 year fix at 3% with a variable of 3.9%. They give 3% cash back, 2% now and 1% after 5 years.

Any other options that I should consider?

Thanks in advance for any thoughts.
Click to expand...

You could also consider AIB's variable rate at 2.95%, as you are in the 50% < LTV <= 80% bracket. You can continue to overpay monthly then, while on the lowest variable rate for your LTV. Worth considering....
 
dave2015 said:
So seems below term is gone in case anyone unaware, it was definitely there back when the 2.6% rate was introduced a couple of months ago but rang to double check and all fixed have blanket 10% overpayment which is great!



I see that Ulster Bank allow you to make an over payment of 1000 a year against a fixed mortgage without any penalty. I don't know what level of over payment you were considering, but may be worth noting in this case.
  • An early redemption charge is due if you repay all or part of your mortgage before the end of the set fixed period, however you can make an overpayment of €1,000 each year without any penalty.
Click to expand...
Hi dave2015I just want to clarify as I assumed I could only pay an extra 1000euro too. Can I pay off 10% of the balance without penalty or is it still just 1000 per year?
 
Seems all 10% now. Above link used to say max 1k but now references the 10% limit. I rang to double check and they confirmed
 
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