Ulster bank fixed mortgage

jones

I am on a fixed mortgage repayment but i got a letter in the door this morning from Ulster bank to say my mortgage repayments will be increasing from 1st january (around 60euro a month) i'm not on any sort of easy-step type account so why is my mortgage going up? (with ECB rates dropping this makes it a bitter pill to swallow)

Is this anything to do with the 1% increase in tax???

Zorba

Nope it's nothing to do with the 1% increase in tax.

If your in a fixed rate mortgage then your payments are fixed for the term, unless your fixed period is up in the new year ? If they are then i assume your fixed at a lower rate than the new rate they sent u, hence the increase.

jones

I am on a 5 year fixed term at 5.16% this is only year one of the fixed term!!! i'll have to ring ulster bank see whats going on... thanks for the help.
the way the letter was worded it seemed to be a change in the TRS but surely this would be an universal thing and would affect everyone?

Trampas

maybe it was a introduction fixed rate for 1st year

Zaph

If you're a first time buyer you're entitled to double the normal rate of TRS for 7 years. This is based on calendar years rather than when you took the mortgage out, so if you got your mortgage in November you'd only have the double relief for 6 years and 1 month. Maybe your double rate period is up?

IsThatSo?

Trampas wrote: »

maybe it was a introduction fixed rate for 1st year

Most banks offer a "sweetener" for the first year to attract new business and I strongly suspect Trampas is correct. Dig out your mortgage agreement and have a read, it will all be in there.

BobbyD10

When did your mortgage start receiving TRS..?

If your mortgage is fixed I can only see TRS being the reason for the increase.

jones

Thanks for all the replies!!!

i was in contact with Ulster bank and the reason mortgage has gone up is TRS. Apparently when i first got the mortgage the TRS was for the remaining months of the year but for 2009 i've the same TRS amount but its divided by 12 months therefore giving me less a month. very strange i'd never heard of this before but at least i've an answer.

lynnog81

Interesing I got the same type of letter myself. Took out mortgage with ulster bank in March 08 and have been getting TRS from beginning. My mortage is now gone up an extra €60 per month based on this letter. I wish they would tell you all these things at begining!

jones

i know its shocking that nothings said!!
Things are tight enough this year without this extra money plus everyone elses mortage (varibable/tracker) are going down big time!!!! :mad:

lynnog81

yes i am on a fixed mortgage aswell until March 2010 but if the interest rates keep going down I will definately be finding out what the penalty is for changing, it could be worth it! The bank also quoted me for building and contents insurance today for 760 euro per year, however i got it myself for 330 about a month ago. So now i am thinking of cancelling my life insurance through them and shopping elsewhere also. It seems i am being ripped off there too compared to other people. Its just all very confusing when you are applying for a mortgage first time and you are conned into things. Im having a very "mad with banks" day!!!

jones

You think thats bad i'm fixed until 2013!!! AHHHHHHHHHH
i never have much sympathy for the banks i must say