Ulster Bank cuts mortgage rate to 2.3% fixed for two years - all LTVs

mugsymugsy said:
However I think people should should consider what will happen after two years is up. Where will rates be then?
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Hi mugsy

Not sure that this is a very relevant issue. If you think that they might be a lot higher, then fix for 4 years at 2.6%

If you think that they might fall in the meantime, then fix for two years and if rates fall, break out early and avail of the lower rate.

There is a small risk that after two years, Ulster Bank's rates will be higher than everyone other bank's rates and that you will be unable to switch. But that is a risk with any lender.

Brendan
 
Brendan Burgess said:
There is a small risk that after two years, Ulster Bank's rates will be higher than everyone other bank's rates and that you will be unable to switch. But that is a risk with any lender.

Brendan
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Hi Brendan.

When you say that you may not be able to switch in two years, what may stop you from switching or are you simply referring to the personal financial circumstances that might prevent you getting approved by another lender?

Delighted to hear of these new reduced rates, about time lenders in this country gave more reasonable rates comparable to other EU countries. I am a soon to be FTB (hopefully) so would love to see some other lenders follow suit. Would you expect to see many other lenders cut rates to a similar degree?
 
Hammo16 said:
When you say that you may not be able to switch in two years
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If you have changed jobs within the past 12 months
If your income has dropped
If you have been in arrears
if you have rescheduled your mortgage
If lending criteria have changed and you no longer qualify
If the mortgage market freezes up again
 
MsCutha said:
.. We’ve recently been approved by UB for mortgage and we were looking at fixing for 5 years at 2.9 (LTI 3.8). Can we change our minds and go with this 2.3% for 2 years? We haven’t received or signed any documents.
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The 2 and 4 year rates aren't available to customers getting exceptions, so your LTI would need to be <3.5. The 5 year might be your best bet.
 
I'm litterly days away from signing the paperwork on switching to BOI 10 year at 3.2%....but getting cold feet now as I'm eligible for UB 7 year at 2.99%.
 
bonzos said:
I'm litterly days away from signing the paperwork on switching to BOI 10 year at 3.2%....but getting cold feet now as I'm eligible for UB 7 year at 2.99%.
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It isn't clear cut. For BOI you've the benefit of a longer term (this may or may not turn out to be a cash benefit but there is the peace of mind) and 3% cashback. For UB it's the 0 cost change (I'm assuming you're already with them) and a slightly lower rate. Just looking at thet first 7 years of both mortgages it's only worth switching for mortgage sums over approx €152k. At that point the 3% cashback trumps the cost of switching (Assume switching fees of 1500) and the marginally higher interest rate costs.

Of course the waters get muddier if you are able to overpay. BOI will let you overpay by an additional 10% of your monthly repayments whereas UB will let you overpay by 10% of the balance per year.
 
Thanks, I read about it in their website. Ah well we’ll stick with the 5 year fixed rate.
 
skrooge said:
It isn't clear cut. For BOI you've the benefit of a longer term (this may or may not turn out to be a cash benefit but there is the peace of mind) and 3% cashback. For UB it's the 0 cost change (I'm assuming you're already with them) and a slightly lower rate. Just looking at thet first 7 years of both mortgages it's only worth switching for mortgage sums over approx €152k. At that point the 3% cashback trumps the cost of switching (Assume switching fees of 1500) and the marginally higher interest rate costs.

Of course the waters get muddier if you are able to overpay. BOI will let you overpay by an additional 10% of your monthly repayments whereas UB will let you overpay by 10% of the balance per year.
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Thanks for the reply, I created an excel with all the figures (including cashback) and there is very little to separate all the banks hovering around the 3%. BOI however do edge it with the 3% cashback, but you have to wait 5 years for the final 1%.....only2% up front
 
RedOnion said:
@Brendan Burgess
It's interesting to look at the rate movements across lenders since Q1 2017.

In that period, AIB is the only lender to have reduced SVR! Butwe've seen cuts of up to 0.9% on fixed rates (PTSB 5 year) as well as the introduction of new products such as this 2 year from UB.

It's interesting to read the SVR policy statement from each bank in that context...

Some interesting comments from Goodbody, including the impact on bottom line for each bank for a 25bps drop in rates: [broken link removed]
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Why have no banks reacted to AIB dropping their variable last year to 2.75!
 
TheJackal said:
Why have no banks reacted to AIB dropping their variable last year to 2.75!
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Because it'd become a race to the bottom? They've managed to hold or grow market share (with exception of UB), so what they're doing is working.
Look at the lenders, and their products. AIB has over 30% market share. They have most competitive variable rates, but unattractive fixed rates. BOI have 27% share. Very competitive fixed, but the most unattractive variable.
Until EBS matched BOI rates, there was nobody directly comparable to BOI as they've all got different cashback offers.
The other lenders are cherry picking specific terms / balances to avoid taking on BOI directly, and they all rely on broker channels for about 40% of their business.
There's increased competition, but there's still a bit of a dance going on.
 
TheJackal said:
Why have no banks reacted to AIB dropping their variable last year to 2.75!
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As an UB customer I'd be pretty happy with what's on offer.

If I were to take out an UB mortgage and fix 37.5% for 2 years and leave the rest variable - assuming a low LTV - I would match AIB. Ok not strictly variable but I'd be able to repay over 66% of loan without having to worry about break fees but also have partially insulated myself against future rate increases.

I'm interested to see what KBC do (if anything). I would have considered UB and them to have had the best middle of the ground packages but between UB rate drops and flexible overpayment options it doesn't leave much for KBC. Probably only the 10 year fixed product that stands out for me now.
 
Great rate, moving in the right direction and a market leader. Ulster bank must believe mortgage interest rates are going to stay on the floor for the next two years.
 
great rate from UB at 2.3%.
asides from the rate offer, would anyone have any reservations about moving a mortgage to them after all the payment blunders they made in the last year or so ? Would you trust them to manage your mortgage properly?
 
candyman said:
great rate from UB at 2.3%.
asides from the rate offer, would anyone have any reservations about moving a mortgage to them after all the payment blunders they made in the last year or so ? Would you trust them to manage your mortgage properly?
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No and yes.
 
I asked the same question about the reliability of UB on another thread. I'd be concerned they were trying to bulk.up their customer base in view of selling or being acquired. But I'm happy to keep an eye on our contracts and mortgage balance (as I currently do anyway) and benefit from the low rates .
 
I am 20 months into a 3 years fixed rate of 3.65% with Ulster Bank.

I have called them to see what the break fee would be and for them to tell me what rates I can switch to. They said they will send me out two separate letters, one advising of the break fee and the second on the rates I can change to.

Will let you know how I get on.
 
misemoi said:
I'd be concerned they were trying to bulk.up their customer base in view of selling or being acquired .
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Loan book acquisition would only be a negative if you were in arrears and the purchaser was a so called vulture fund looking to turn a quick buck. But given we're talking about being in a position to refinance here I don't see any concern for a borrower if you're with UB. Pay bills on time and who cares if the headed paper the statement comes on changes. Regardless I would expect everyone to be looking at best options when any fixed rate expires (if not before)
 
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