Ulster Bank cuts some mortgage rates

Coldwarrior

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155
Looks like UB have cut some of their fixed mortgage rates https://www.independent.ie/business/personal-finance/property-mortgages/ulster-bank-cuts-home-loan-rates-in-bid-to-lure-new-buyers-38472586.html

Can't find a new rate table but their standard 5 year fixed is dropping to 2.6% (from 2.99%) and the 7 year fixed to 2.99% (from 3.29%). High value rates are now also available for mortgages over 300k, down from 500k. Would have liked to see a drop to their 2 year 2.3% rate also but good to see more cuts, hopefully other banks will follow.
 

Brendan Burgess

Founder
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38,421
Available from 11th September 2019, the new, simplified rate structure is outlined in the table below, with reductions and additions highlighted in yellow:
4040

Ulster Bank Simplifies Mortgage Offerings for all Customers, Reduces Five-Year Fixed Rate and Highlights New Rates for Those Seeking Exceptions*

  • Five-year fixed rate mortgage reduced to 2.6% up to 90% LTV for first time buyers (80% LTV for all other customers)
  • Minimum loan amount for high-value five-year rate of 2.5% reduced to €300,000
  • New mortgage rates introduced for customers seeking exceptions across all available terms
  • Ulster Bank has the lowest four and seven-year fixed rates**
  • On top of the new rates, Ulster Bank continues to offer fixed rates as low as 2.3%, €1,500 cash towards legal fees and free valuations on all new mortgages.


6th September 2019: Ulster Bank has overhauled its mortgage offering in order to make it simpler and clearer for customers, including those seeking exceptions to the Central Bank of Ireland’s macro-prudential lending rules on income limits and deposits.

In addition to fixed rates as low as 2.3%, the bank has reduced and simplified its five-year fixed rate from 2.8-2.99%, depending on LTV and other factors, to 2.6% across all LTV bands up to 90% LTV for first time buyers (80% LTV all other customers). The bank has also cut the minimum loan amount for its competitive high-value five-year rate of 2.5% from €500,000 to €300,000, opening up this mortgage product to a wider range of customers.

For those customers seeking exceptions to the Central Bank of Ireland’s lending rules* and switchers whose LTV is above 80%, Ulster Bank has introduced a new range of fixed rates, which are lower than before. They range from 2.45% for the two-year fixed rate to 3.14% for the seven-year fixed rate. These new rates will apply across all LTV bands.



Notes to the editor

*Exceptions:


A customer is seeking an exception if they are:

  1. A First Time Buyer (FTB) seeking to borrow above 90% LTV and / or 3.5 time Loan to Income;
  2. A Second or Subsequent Buyer (SSB) seeking to borrow above 80% LTV and / or 3.5 times Loan to Income.
SSB includes anyone seeking a new mortgage to move home, or a switcher from another lender who is borrowing additional money over and above their existing mortgage.

** Source - Bonkers.ie as at 06/09/2019

Representative examples:

A customer with a €200,000 mortgage over 20 years on a Standard Variable Rate of 4.3% could save €174.23 per month or €2090.76 per year for five years by switching to Ulster Bank’s new five-year fixed rate of 2.6%.

A customer with a €200,000 mortgage over 20 years on a Standard Variable Rate of 4.3% could save €203.38 per month or €2440.56 per year for two years by switching to Ulster Bank’s two-year fixed rate of 2.3%.



In addition to these rates, Ulster Bank is also offering customers:


· €1,500 contribution to legal fees on applications submitted by 31st December 2019 (for new mortgages with a minimum mortgage amount of €40,000.)

· Free valuations on new mortgages

· Same rates available to new and existing customers

· 10% annual overpayment allowance on fixed rate products, giving customers both certainty of repayment and flexibility to make overpayments to save interest

· Secure bespoke video technology so customers can talk to us at their convenience

· Mobile Mortgage Managers available to meet outside of work hours and in a place convenient to customers. For more information on how to contact Ulster Bank’s Mobile Mortgage Managers, please visit: https://digital.ulsterbank.ie/personal/mortgages/talk-to-us/mobile-mortgage-team.html

· Rates available through all channels, in branches, online, through our mobile mortgage managers, via telephone and via brokers

Additionally, for first time buyers:

· €25,000 Life Insurance cover for first time buyers in the first year of the mortgage (provided by Irish Life)

· 50% off Home Insurance for first time buyers until 31st December 2019 in the first year of the mortgage. Subject to minimum premiums and underwriting criteria by Aviva.
 

Protocol

Frequent Poster
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2,959
Just a point to note

UB fixed rate mortgages offer a good feature of being able to make lump-sum over-payments of up to 10%.

But note that if you do so, your monthly repayment will then be lower.
 

HollowKnight

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168
Just a point to note

UB fixed rate mortgages offer a good feature of being able to make lump-sum over-payments of up to 10%.

But note that if you do so, your monthly repayment will then be lower.
This is not the case if you overpay by less than €1000.
You obviously pay less interest month to month but your repayment stays the same.

Eg. You have to pay €1000 p/m. You overpay €500p/m.
The next month you still pay €1000.
 

skrooge

Frequent Poster
Messages
176
Just a point to note

UB fixed rate mortgages offer a good feature of being able to make lump-sum over-payments of up to 10%.

But note that if you do so, your monthly repayment will then be lower.
Just to clarify It's 10% of the outstanding balance per year.

As already stated any overpayment won't reduce your monthly mortgage payment. I've been overpaying for 15 months am no change in repayments. By fixing and overpaying your are effectively baking in an automatic overpayment into your monthly mortgage contribution.
 

Protocol

Frequent Poster
Messages
2,959
I made four overpayments, all during the same week.

5k, 5k, 5k, 4.5k

In advance I had asked for the IBAN to use, but didn't discuss anything else.

The following week I received three letters acknowledging the lump sum payments, and indicating the new lower monthly repayment.

The repayment has dropped by approx 100 pm.

The online account also shows the new lower repayment.

Should I have requested that my monthly repayment remain the same?
 

misemoi

Frequent Poster
Messages
131
Hmm was just about to switch to 2yrs at 2.3 but overall the 5 years works out not that much different now. 2.6 is an excellent rate that still allows for overpayment. No plans to move in that five years, but plans to overpay. And also it would be nice just to pay the mortgage and not be looking at rates! Balance is so low now it makes no sense to keep switching.
 

haventabreeze

New Member
Messages
7
If you make the overpayment of 1,000 plus over the phone, you can specify at that time which you’d prefer, to lower the repayment or reduce the term. No letter needed.
If you make regular repayments of less than 1,000, you can write them a letter at any time asking them to combine the total payments and lower the repayment or reduce the term.
 
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