Hi,
Are we crazy to consider a switch to Ulster bank considering their future in the mortgage market is uncertain?
The good loan book of Ulster is likely to be bought by one of the other banks.
Brendan
An UB rep has no idea what rates will be in 4 or 5 years. Nor do you or I. Fixing for long is like taking our insurance. You pay a bit more but have peace of mind that you won't face in increase over the period.I was thinking of 4 or 5 year fixed but when we spoke to the UB rep, she mentioned a few times about an increase in rates in 2025?
No. Whoever takes it over will have to honour the terms. You can always switch at any point in future if you don't like the rates that UB's successor is offering when your fixed-rate period is up.Also if we fix for any amount of years and UB leaves the market, would we be in any sort of worse position when it comes to whoever takes it over?
if they do exit the market.This will be interesting because as far as I know no Irish bank will take me as a customer.
Thank you for your reply.An UB rep has no idea what rates will be in 4 or 5 years. Nor do you or I. Fixing for long is like taking our insurance. You pay a bit more but have peace of mind that you won't face in increase over the period.
No. Whoever takes it over will have to honour the terms. You can always switch at any point in future if you don't like the rates that UB's successor is offering when your fixed-rate period is up.
Just make sure you're in a position to switch at the end of the fixed term, if not and if a vulture fund buys UB's mortgage book you might get stuck with a high interest rate. Not likely to be a problem if one of the other banks buys UB's mortgages.Kitty, we are in a similar situation with our UB fixed rate maturing in July, no other accounts with them. We have 19 years left, a big mortgage, and aren't in a position to switch providers right now due to other current commitments we have. To be honest the UB fixed rates are very attractive anyway and T&Cs will have to be honoured no matter who buys the mortgages.
So I figure personally we should fix for as long as possible, be that 5, 7 or even 10 years, and we will worry about the demise of UB at the end of that period.