Thanks for that monbretia. I never realised you could link multiple accounts to the offset mortgage. I could certainly begin saving through that ub savings account to reducé the interest on the mortgage. Where would be my best point of contact to get the savings account linked do you think and/ or could they refuse to to same? I don't really need the ub current account so might just leave as is.
You could just rock up to nearest branch and see if they can do it there, at least if they can't they will tell you who to contact. Think it was up to 4 accounts could be linked, I have closed all mine except for one savings account and the current account.
Cheers for that, a great help.
So just to let you know, Ulster called back and will reopen the current account. As an aside, as the balance on the offset account grows, does this reduce the repayments on the mortgage or just shorten the term, assuming interest rates were to stay constant?
That's great news!
It's a repayment mortgage so the term will shorten over time then. With interest rates on the up id imagine it's probably the best place to put any savings at the minute. I note the talk of the possibility of ulster bank trying to offload these mortgages by way of a discount to the mortgage holder if they can clear the balance. Is this likely does anyone think?
The term technically stays the same but in effect similar with overpayments it will end sooner if overpaid which basically is what is happening when repayments remain the same but the interest portion is smaller.
Yes you have that roughly right, there is a form to be signed for drawdown rather than just a phone call and you must have life cover in place to cover the additional drawdown for the remaining term of mortgage, if you had decreasing term insurance originally it may have decreased below what you need but need to check it. If you have any other policy you can use that instead if it covers what's needed.
Really appreciate the info monbretia but you lost me with the waiver thing. How does that work exactly? Thank you
Under Consumer Credit Act you must have life insurance in place to cover a mortgage however there are a few reasons where a bank can offer you a 'waiver' of that requirement. Usually if you can't get it due to a medical condition, too expensive to get it due again to medical reason, customer is over 55, however it is up to lender whether or not to allow this.
Oh grand, il make sure it's adequate for the cover il need. Thanks for all
I'll break your heart yet monbretia with these questions... so contacted ulster, nó problem getting the extra facility, just need letter with life assurance assigned to them. Thing is I changed life assurance in 2010 and sent ulster the new policy but it's not assigned to them as far as I can see tonight. Will call insurer tmra to confirm same. So is it a big deal to get this done and does it take long typically. Just a bit anxious that ulster can review the facilty at any time and I run out out of time. Thanks in advance,
I wouldn't have thought that they needed it assigned, feel they dropped that requirement at some stage but maybe they reinstated it, I'm remembering back a while! They must not have been assigning them back in 2010 or they would have looked for it when you sent in new policy, if they have already accepted that policy then just confirm back to them when sending in letter that it's an up to date copy of the same policy they already have on file showing it's still in force and wait and see.
Good idea, il throw it back to them that way see how it goes. Was told over the phone that when they receive letter from me etc that funds would b in my account within 5 working days.... will let you know how it works out. Thank you