Ulster Bank - pay break fee to refix rate or wait until July

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PaulaD

Registered User
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Hi there, apologies for yet another thread on UB but I can't quite find one the same as my situation.

Currently on fixed rate with UB of 2.85% due to end 30th September this year. Balance is 210,000 with 27 years remaining. I am trying to beat a rise in rate when the mortgage moves to PTSB. I cannot switch as the original mortgage was a joint application and following divorce the term was extended and I am the sole payee who does not earn enough to get the mortgage in my own name - computer says no.

So got a break fee figure of €966 in the post today and could potentially switch to a 4 or 5 year fixed rate of 2.45% with current LTV <80%. My question is am I better to break out & refix now or wait it until July when I can switch with no break fee - if anyone has a crystal ball that would be great so I can see whether UB will still be here in 6 months offering the same deals or not
 
You are getting a reduction of 0.4%
€210k @.4% = €800 a year
For 8 months, say €500
So you would be losing €500 immediately by switching now.

Your mortgage will not move to ptsb before the fixed rate is ended.

However, it's possible that fixed rates may rise or fall before your fixed rate is ended.

On balance, I would not switch until the fixed rate is up or the penalty reduces.

Brendan
 
Thanks Brendan, I wasn't sure if I was gonna be ok to wait til July but that's good to hear they wont have pulled out by then,ill just have to watch the interest rates so
 
Hi @PaulaD
PaulaD said:
Currently on fixed rate with UB of 2.85% due to end 30th September this year.
Click to expand...
PaulaD said:
My question is am I better to break out & refix now or wait it until July when I can switch with no break fee
Click to expand...
Do you mean that Ulster Bank waive the break fee if you are within a few months of the end of your fixed rate? Is that something they told you? It's interesting, if I'm understanding it correctly.

Also, what is your BER? If it is B2 or higher, you are eligible for the 2.35% rate (fixed for 4 years).
 
Ulsterbank say you can switch from a fixed within 60 days of the rate expiring. It is written in the second for switching to other UB rates but I'd assume it applies to other banks too.
 
I believe you don’t technically switch rate until the end of your agreed period. rather it allows you to sign up to a new rate within that 60 day period, and Ulsterbank will hold that rate for you and move you across when your fixed term expires.

I’m in a similar situation, my 2.6 rate expires in September. I would like to fix now to the 2y 2.2, but will probably hold out until august given the deal shouldn’t have completed by then. Hopefully Ulster are continuing with business in their usual fashion at that stage.
 
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