Which is better Ulster Tracker Mover product @2.5% or fixed rate?

Discussion in 'Tracker mortgages - other than redress issues' started by Brendan Burgess, 14 Jan 2019 at 8:01 AM.

  1. Brendan Burgess

    Brendan Burgess Founder

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    Last edited: 14 Jan 2019 at 8:10 AM
    If you have a tracker with Ulster Bank at ECB +1% and you want to move home, they will give you a tracker mortgage for the balance outstanding and the remaining tracker term at ECB +2% for 10 years. If you are borrowing more money, they will charge you the market rate.

    But you can fix for two years at any LTV at 2.3%. Which should you go for?

    I think it's clear that the tracker is the better long-term product - assuming you have 10 years or more remaining on your tracker.

    The 2.5% rate is fixed for 2 years so ECB rates would have to rise quite a bit for you to save money by opting for that instead of porting your tracker.

    I would opt for the tracker with Ulster Bank.

    Brendan
     
    Last edited: 14 Jan 2019 at 8:10 AM
  2. Brendan Burgess

    Brendan Burgess Founder

    Posts:
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    Last edited: 14 Jan 2019 at 8:12 AM
    Should you consider switching to another lender and give up your tracker altogether?

    I don't think so. You can have a tracker at ECB + 2% for 10 years and the balance fixed at 2.3% for two years.

    The best alternative is to fix with Bank of Ireland at 3% and stay with them for 5 years to get 3% cash back. This works out at 2.4% ( 3% over 5 years = 0.6% a year.)

    So the porting option remains better.

    But it's getting closer.

    If, for example, you want to trade up and Ulster Bank won't give you a big enough mortgage, but Bank of Ireland will, then don't worry about losing your tracker.

    Brendan
     
    Last edited: 14 Jan 2019 at 8:12 AM
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