Ulster Bank Closure Confirmed - Mortgage Breakout Fees

[DCtoday]

Hello,

I've tried to break out of a 4% fixed mortgage with Ulster Bank for some time now and sadly missed the spike in Eurobor rates last year when Covid started which meant zero fee breakage.

Now that Ulster Bank is confirmed to be closing, is this likely to allow us to switch mortgage to another provider without incurring a breakage fee for fixed rate mortgage holders please?

They apparently need to provide at least 2 months notice to consumers but I can't find details other than existing contract terms must be honored for the consumers protection.

 

[Brendan Burgess]

In most cases the Ulster Bank fixed rate is competitive so customers shouldn't switch until the fixed rate term is up.

However, those customers who don't want their mortgage sold to permanent tsb or whichever bank it is sold to, should have a right to switch now.

Brendan

 

[DCtoday]

In most cases the Ulster Bank fixed rate is competitive so customers shouldn't switch until the fixed rate term is up.

However, those customers who don't want their mortgage sold to permanent tsb or whichever bank it is sold to, should have a right to switch now.

Brendan

Thanks for the fast reply! Just what I was asking at the exact second! Is there any legal basis to insist they allow us as they are possibly changing contract terms?

 

[DCtoday]

Just called them for a breakage fee and they said it'll take 5 days for one to be posted out to me.

If they still go by Euribor then it'll be high fees, but here's hoping them closing releases folks from high interest rates so we can move to Avant.

euribor-rates.eu/en/euribor-charts/

At 1.95% they still seem the lowest on the market:

avantmoney.ie/mortgages/rates

Some countries have applied negative rates to mortgages!

theguardian.com/money/2019/aug/13/danish-bank-launches-worlds-first-negative-interest-rate-mortgage