Fixed rate

CinammonGirl

I have been on a tracker rate with Ulster Bank for the last 2 years. I have enquired about fixing and they have offered me a fixed rate of 4.65% for 2 years (this works out better than the tracker rate following the last rate increase). So that is fine. They have told me verbally that I can go back on the tracker rate when the 2 year period is up, however, the one-page form that I got to sign does not actually state this in so many words. So my question is can I rely on this verbal information from them or are they going to screw me with some variable rate when the two years are up???

The_Conductor

Normally there isn't any difficulty whatsoever getting on a tracker rate- which tracks the ECB base rate, as opposed to the variable rate, which does not. In this case I would take the person whose word you were speaking to, at face value. I can't think of any reason whatsover that they'd refuse to put you back on a tracker.

Victor

Note that the mark-up between the tracker rate and the base rate may chang eover those two years anyway.

iguana

Are you sure that fixed offer still stands? I believe UB upped their fixed rates on Friday.

I 1st read it here they OP has mixed up the IIr and the APR, but the UB site
has it down as 5.6% for the 3 year fixed rate.

Ulster Bank wrote:

Fixed Rate Mortgages
Mortgage Type Typical APR 20 Years
Fixed Rate until 30 September 2009 5.6%
Fixed Rate until 30 September 2010 5.6%
Fixed Rate until 30 September 2012 5.7%

Fixed rates will have a set rate until the maturity of the fixed rate. On maturity the rate will default to the Standard Variable Rate APR 5.6% (see typical example for a standard variable rate mortgage above) unless an alternative rate is chosen.

It might be worth shopping around quickly if they say the 4.65% offer is no longer available. Here's what's currently available for 3 years according to mortgages.ie


Bank of Scotland 5.01%
Irish Nationwide 5.26%
INBS 5.26%
Bank Of Ireland 5.10%
ICS 5.10%
Permanent tsb 5.20%
EBS 5.20%
AIB 4.83%
IIB 5.18%
Ulster Bank 5.60%
National Irish Bank 5.31%
First Active 5.40%

CinammonGirl

Thanks for the replies everyone. They actually quoted me that rate 3 weeks ago when I rang up but I only got the paperwork on Friday, following several increasingly irate phone calls so if they tell me I can't have this rate now I will be a very unhappy camper!

I don't want to move from them just yet, as I only signed up with them 2 years ago and if I change provider within 5 years I will have to repay the legal costs which they covered for me.

The_Conductor

CinammonGirl wrote:

as I only signed up with them 2 years ago and if I change provider within 5 years I will have to repay the legal costs which they covered for me.

That may well end up being the lesser of two evils......

Rates went up since you were quoted- so its entirely possible the original quote no longer stands.

The_Conductor

Yes, the Ulster Bank rates are "locked out".

From Saturday's Irish Indo. Link here


ULSTER Bank has dropped a highly competitive three-year fixed rate mortgage and replaced it with a more expensive one.


The bank said its three-year fixed rate mortgage, with a rate of 4.65pc, and its five-year rate were heavily oversubscribed as sharp consumers spotted a bargain.

Expressed in annual percentage rate (APR) terms, the three-year rate worked out at 5.2pc, while the five-year rate worked out at 5.2pc APR.

Consumers will now be forced to pay almost 1pc higher for fixed rate deals from Ulster Bank.

The Irish Independent had twice advised consumers interested in fixed rates to take up the offer as it was seen as good value.

In a recent 'Your Money' piece consumers who were worried about future rate rises were advised to grab low three-year and five-year rates "with both hands".

New Ulster Bank fixed rates became effective from yesterday.

The three-year rate moved to 5.25pc (5.6pc APR), while the five-year rate rose to 5.67pc (5.7pc APR).

Yesterday AIB raised its rates across the board in response to the increase in European Central Bank interest rates two weeks ago.

ECB rates rose 0.25pc to 4pc as central bankers fear inflation will grip eurozone economies.

AIB's standard variable rate for homeowners rose by 0.25pc to 5.10pc, overdraft rates rose to 12.7pc (APR 14.77pc), while deposit rates also rose.

On Thursday, Bank of Ireland raised its standard variable mortgage rate to 5.09pc, its overdraft rate to 12.75pc (15.1 APR), and at the same time also increased its deposit rates.

- Charlie Weston

The_Conductor

Halifax are now offering fixed rate mortgages in two-, three- and five-year deals. The APR on the five-year loan is fixed at 4.98pc. On a typical 200k mortgage the 1k legal fees would be repaid within a year on this package, over and above the Ulster Bank rates......

CinammonGirl

Eek that was what I was afraid would happen and I said this each time I rang up over the 3 weeks. Anyway, I have faxed and posted the form so I will see what they come back with. If they aren't efficient enough to simply put a form in the post, I am not paying the price for it. Thanks a mill for that info.