Ulster Bank cuts rates

Protocol

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I have a 4yr fix with UB since end-2018, at 2.6%, fixed until 31-3-2023.

I wonder could I do an internal switch to 2yr fix now, at 2.2%.

I must do the sums on that.
 

Coldwarrior

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I have a 4yr fix with UB since end-2018, at 2.6%, fixed until 31-3-2023.

I wonder could I do an internal switch to 2yr fix now, at 2.2%.

I must do the sums on that.
You can but you'll likely have to pay a breakage fee, ring them to find out how much that is first and you can figure out then if its worth it.
 

PebbleBeach2020

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Is the 2 years fixed LTV <60% the 2.20% only for borrowers taking upto 3.5 times their LTI?

If you exceed 3.5 times your income and get an exception from the bank, isn't the rate higher?

It was 2.30% for borrowing upto 3.5 times your income and it was 2.45% if borrowing more than that and getting an exception. If it now just 2.20% regardless of exceptions or not?
 

RedOnion

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We looked at some case studies of breaking and reducing the last time UB reduced rates. Not as significant this time, but worth looking into for anyone on a higher rate that's now eligible for the lower rates.

 

Gordon Gekko

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We looked at some case studies of breaking and reducing the last time UB reduced rates. Not as significant this time, but worth looking into for anyone on a higher rate that's now eligible for the lower rates.

Hi RedOnion,

I’ve a favour to ask...can you work your magic and tell me what my approximate break-fee would be?

€690k outstanding
2.5% rate
I’m 3 years into a 5.5 year fixed period
(i.e. fixed in December 2017)

Many thanks,

Gordon
 

RedOnion

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December 2017
I feel silly now. Had you already posted that before I asked?

Rates have dropped since you fixed, to the extent that the UB cap of 6 months interest would kick in for you. So c.8,625 break fee.
You'd need to reduce rate below 2% to make it worth while, other than the security of locking in a low rate for longer.
 

Gordon Gekko

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I feel silly now. Had you already posted that before I asked?

Rates have dropped since you fixed, to the extent that the UB cap of 6 months interest would kick in for you. So c.8,625 break fee.
You'd need to reduce rate below 2% to make it worth while, other than the security of locking in a low rate for longer.
Nope, I added it in subsequently for clarity!

Thanks a mill for that, good to know.

I thought I was earlier in the term, so another 2.5 years isn’t the end of the world.

The plan is to throw some money at it before the term ends and then move, either to collect some cashback if it’s still around or to whatever the best rate is.

Avant Money’s 1.95% is a great rate but I have heard a number of people swerve it because you can’t make lump sum payments. And the cashback offers tend to sit alongside higher rates.

Hopefully the best balance of factors will be with UB (if they’re still around!).
 

RedOnion

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Avant Money’s 1.95% is a great rate but I have heard a number of people swerve it because you can’t make lump sum payments.
No, you can. But they don't allow big lump sums without calculating a break fee. You can pay 1% of the balance per annum without a break fee.

If you've a lump sum to pay off, you can pay 10% per annum with UB without break fee. So pay the lump sum first, then ask for the break fee and it'll be 10% less!
 

MrEarl

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If you've a lump sum to pay off, you can pay 10% per annum with UB without break fee. So pay the lump sum first, then ask for the break fee and it'll be 10% less!
Is that once every calendar year, or over a rolling twelve month period ?

I'm sitting here wondering if UB's systems are that good, or if there is someone checking manually, each time additional payments are made, or if its easier for UB to manage, by simply resting the limit on the 1st Jan each year.
 
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RedOnion

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Is that once every calendar year, or over a rolling twelve month period
I'm not entirely sure to be honest. I always understood it to be per year, but I might be wrong based in this thread:

Unfortunately I don't have a full terms and conditions brochure at the moment to check.
 

skrooge

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Is that once every calendar year, or over a rolling twelve month period ?

I'm sitting here wondering if UB's systems are that good, or if there is someone checking manually, each time additional payments are made, or if its easier for UB to manage, by simply resting the limit on the 1st Jan each year.
I was told by the bank it's calendar year.
 

RedOnion

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And it’s based on the balance on 1 January, correct?
It's the balance at the beginning of the year. I just can't work out if that's 1st January, or the anniversary of the date you fixed.

It's actually not clear at all from the documentation I've looked at. I'd hope it's clearer in the terms and conditions brochure they provide to customers.
 
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