Ulster Bank cuts fixed rates

i was just on to ulster bank, they allow you to pay down a further extra 10% of the remaining loan value each year without incurring a fee. So if have 250,000 outstanding on my mortgage i can pay down a further 25k in that year without incurring a fee. This sounds very good to me. The only risk for me is that variable rates could go below 2.6% over the next four years, a risk im willing to take.
 
galway2014 said:
i was just on to ulster bank, they allow you to pay down a further extra 10% of the remaining loan value each year without incurring a fee. So if have 250,000 outstanding on my mortgage i can pay down a further 25k in that year without incurring a fee. This sounds very good to me. The only risk for me is that variable rates could go below 2.6% over the next four years, a risk im willing to take.
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Not a hope of that happening
 
galway2014 said:
i was just on to ulster bank, they allow you to pay down a further extra 10% of the remaining loan value each year without incurring a fee. So if have 250,000 outstanding on my mortgage i can pay down a further 25k in that year without incurring a fee.
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Get that in writing from them, including a worked example of it. The normal 10% rule is 10% of the monthly repayment amount. You don't want to be subject to a misunderstanding in the future.

So give them the example of
Year 1 250,000 outstanding - customer pays off 10k normally as capital reduction and an extra 25k
Year 2 215,000 outstanding - customer pays off 10k normally as capital reduction and an extra 21.5k
Year 3 183,500 outstanding - customer pays off 10k normally as capital reduction and an extra 18.35k
Year 4 155,150 outstanding - customer pays off 10k normally as capital reduction and an extra 15.5k
Year 5 129,650 outstanding
So at the end of a 4 year fixed term, the balance of the mortgage is now 129,650 with no associated penalties

This sounds very unusual to me ...
 
gnf_ireland said:
Get that in writing from them, including a worked example of it. The normal 10% rule is 10% of the monthly repayment amount.
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Not for Ulster. I plan to compile for all the banks to add to the fixed break fees key post. So far:
BoI will allow you to increase your monthly repayment by 10%.
UB will let you pay off 10% of the balance early each year.
KBC allow you to overpay by 10% of the initial balance over the full fixed term.
 
RedOnion said:
Not for Ulster. I plan to compile for all the banks to add to the fixed break fees key post. So far:
BoI will allow you to increase your monthly repayment by 10%.
UB will let you pay off 10% of the balance early each year.
KBC allow you to overpay by 10% of the initial balance over the full fixed term.
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So how fixed is fixed :) Looks like BOI are the most restrictive, and the others probably sufficient for 90% of people who overpay !
I am surprised by UB - seems to be very generous to allow that level of over-payment on a fixed product.
 
I fixed my mortgage with UB earlier on this year. The fixed rate ends on March 2022.
They're currently advertising the rate until Sept 2022.
I did some sums and assuming a rate rise of .5% it'd save a reasonable amount for me to get the extra 6 months.

I thought I read somewhere on these forums that somebody rang them to get the end date of the rate set to Sept without any hassle.

So I just rang them now asking if I could extend the date to Sept 2022. The guy on the phone told me that this would incur a breakage fee. When I asked how much that'd be he said he couldn't say over the phone and would have to send the letter. So I'll get that whenever.

I'm just wondering if anybody has tried this with them and if they got charged a breakage fee. Fine if they did. Thems the rules.
 
qwerty5 said:
I'm just wondering if anybody has tried this with them and if they got charged a breakage fee. Fine if they did. Thems the rules.
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It's quite likely at the moment that the break fee is zero. But they'd need to do a calculation to check. I'm not sure what process UB have, but it's quite manual where I've seen it elsewhere.
 
RedOnion said:
It's quite likely at the moment that the break fee is zero. But they'd need to do a calculation to check. I'm not sure what process UB have, but it's quite manual where I've seen it elsewhere.
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And slow :) Whenever they say they have to send a letter my heart sinks. That normally involves waiting a couple of weeks, then ringing them, then getting a new letter sent out. Then spending 2 minutes to fill in their form and sending back immediately. And then following up a month later to see why it hasn't been applied yet.
 
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Had similar problem with KBC and getting letter issued. Amazing though when I rang complaints to make an official complain the letter was created and emailed over in 24 hours....

I would suggest you follow up the call with an email so you have a date of when you requested that can't be argued.
 
It was me that posted. Break fee letter of zero and switch options came out within week, sent back and got confirmation of change to the sept 2022. Took opportunity to overpay a lump sum before it moved as assume I get a new 10% overpayment allowance on the new contract.
Whatever ppl say about UB I always find them efficient. Granted the nonsense last week is worrying but I wasn't impacted.

Not related but also got my free travel insurance enacted today with them, another few quid saved, related to current account.
 
Got my letter today. My current mortgage is €220000 and fixed until March 22.
On the letter of I break and fix until Sept I'll get charged a breakage fee of €2912.37

I think they make this stuff up as they go along
 
qwerty5 said:
Got my letter today. My current mortgage is €220000 and fixed until March 22.
On the letter of I break and fix until Sept I'll get charged a breakage fee of €2912.37

I think they make this stuff up as they go along
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Rates would have needed to drop 0.33% for that to be right.
Did they provide any breakdown of calculation?
 
Nah. Just says it's based on 6 months interest.

On the last page it has variable rates with no breakage fee. So it looks like I'll have to ring them and see what they mean

Its a bit idiotic if I have to switch to a variable rate and then switch to a new fixed rate.
 

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qwerty5 said:
Just says it's based on 6 months interest.
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Ah, That's the maximum that UB will charge you if you subsequently break at a later date from the new fixed rate.

They should have provided a break fee for current break.
 
RedOnion said:
Ah, That's the maximum that UB will charge you if you subsequently break at a later date from the new fixed rate.

They should have provided a break fee for current break.
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Ah that makes sense. Now that I read it properly there's a line saying that I will be receiving another letter with the breakage fee.
 
Just an update. I didn't receive the letter with the breakage fee. As there's an expiry date on the rate sheet (yesterday actually) I rang them. And it's Nil. So I can extend the fixed rate by 6 months with no fee.

I don't think the expiry date on the rate sheet means much. The date of the sheet was 30th April. It arrived at my house on 9th. The expiry date was 10 days from the date of the sheet. When I rang the lady in Ulster Bank she said the letter with the breakage fee was sent on the 9th. So the usual levels of efficiency there, but we get there in the end :)
 
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