Ulster Bank reduces mortgage rates for some new and existing customers

Brendan Burgess

Brendan Burgess

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According to Charlie Weston: http://www.independent.ie/business/...-for-those-with-equity-in-homes-34956388.html

I attach the press release which is very confusing

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  • ULSTER BANK LOYALTY RATES PRESS RELEASE 11 August.docx
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OK, so it's a best buy if you have a mortgage over €200k and less than 80% LTV.

3.1% compared to 3.3% for AIB customers.

If you have a mortgage over €350k at 90% LTV, it's also (comparatively) good value at 3.5% - it used to be 4.3%.

Brendan
 
But if you are in negative equity on the SVR - this is completely meaningless and you are stuck on the extortionate 4.3% and cannot fix? I hope I have read this wrong, please enlighten me otherwise.
 
Good to see mortgage rates continuing to move in the right direction, albeit at a glacial pace.

I wonder will we see a lender offer a sub-3% variable rate this year for low LTI/LTV loans?

As borrowers continue to build equity in their properties, with recent house price increases and principal repayments, we will hopefully start to see a more active switcher market develop over the coming months. This will drive competition in the mortgage market and should result in lower rates.
 
jathclare said:
But if you are in negative equity on the SVR - this is completely meaningless and you are stuck on the extortionate 4.3% and cannot fix? I hope I have read this wrong, please enlighten me otherwise.
Click to expand...

I think you have read it correctly. This announcement offers nothing to those in negative equity or with LTVs above 90%.

Not sure if UB has fixed rates for such people.

Brendan
 
A point here for existing UB mortgage customers on their "Loyalty" products is previously you did not need to have your salary mandated, but just to have an UB current account. They've also reduced the amount required to be borrowed from 250k to 200k. So while reducing the rate they've also changed the criteria somewhat, hence the "New Loyalty" reference I guess.
 
Brendan Burgess said:
I think you have read it correctly. This announcement offers nothing to those in negative equity or with LTVs above 90%.

Not sure if UB has fixed rates for such people.

Brendan
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Essentially, the banks are pocketing TRS paid by the state on such mortgages by keeping rates high while masquerading that they are cutting rates. Its subsiding the bank, not them mortgage holder. This should be noted in the AAM budget submission.
 
jathclare said:
Essentially, the banks are pocketing TRS paid by the state on such mortgages by keeping rates high while masquerading that they are cutting rates. Its subsiding the bank, not them mortgage holder. This should be noted in the AAM budget submission.
Click to expand...

Huh? How are banks pocketing tax relief extended to borrowers? In what way is TRS subsidising banks?
 
I was contacted by Ulster bank today confirming the 3.1% rate for loans under 80% of value. Since the start of the year they've reduced from 3.3%, to 3.2% to 3.1%.
They also mentioned a 3-year-fixed rate of 2.99%. Is this good?
 
Niall56 said:
I was contacted by Ulster bank today confirming the 3.1% rate for loans under 80% of value. Since the start of the year they've reduced from 3.3%, to 3.2% to 3.1%.
They also mentioned a 3-year-fixed rate of 2.99%. Is this good?
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I think you answered that in the first line of your post. Personally, I wouldn't fix to that product
 
Am I right in saying that if you currently have an Ulster Bank Variable rate mortgage of less than €200,000 then these new Ulster Bank rates change nothing for you?
 
If you take SRV 3.1% and UB SRV goes down again it's like to fix on 3.1 as the new rate might not apply to existing customers. Is this correct?
 
Great news! Approx. 18 Euro monthly that stay in my pocket now. every little counts ;-)
On top of the very positive switching experience I had with Ulsterbank I can only recommend them for anyone who is in the right bracket.
 
Niall56 said:
Why is that? Do you expect rates to drop significantly below 3% over the next three years?
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Rates are falling and no sign of them increasing in the next few years. I wouldn't fix for more than1 year right now. You can see yourself from your own post what has happened at UB in the past year.
Only my opinion of course
 
The topic title and the Indo's article title are slightly misleading. They should really have the word "some" in them.
 
how soon one on variable rate can move to another lender to avail of lowered rate if his current bank does not pass lowered rate to existing borrower?
 
Gordon Gekko said:
Do you still have to be a "3.5 times income" borrower to avail of the 3.1% rate?
Click to expand...

Interestingly, I can't find it anymore explicitly mentioned on their site so maybe it isn't as strict anymore. OTOH, Central Bank guidelines state 3.5 LTI so it would be.
 
CiaranT said:
The Ulster Bank website here seems to state that the 3.10% rate applies to those borrowing 350,000 EUR or more.

The press release in the opening post seems to imply it is for those borrowing over 200,000 EUR or more.

Which is right? or am I missing something?
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There's two loyalty rates: 1 - Loyalty Discounted Variable and 2 - Loyalty Premium Discounated Variable
For 1: LTV < 80% meaning a rate of 3.1% (minimum amount 200K)
For 2: LTV >81% <90% meaning a rate of 3.5% (minimum mortgage amount 350K)
If you ave LTV >81% <90% but less than 350K you'll pay the flexible variable of 4.3% listed above

That's my interpretation! Higher LTV means higher rate, but you get better rate for higher mortgage. I assume this is still linked to LTI of 3.5
 
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