2.6% Mortgages with Ulster Bank

JTMan

Ulster Bank, on 25 July 2017, will announce new mortgages rates.

New rates include a market leading 2.60% fixed for 4 years. Currently the cheapest mortgage rate on the market for new customers.

Worth noting:
- Ulster Bank given 1,500 EUR cashback ('legal fee contribution') which, in most, cases, is not as high as the 2-3% cashback offered by BoI, PTSB and EBS but rates are obviously much lower with Ulster Bank.
- If you think rates will decrease further, due to competition, over the coming period, then locking for 4 years may not be wise.

Dave147

Just starting a mortgage with them, we're 8k below threshold, wonder will they be nice and give us this rate, will save us €60 a month.

James Bond Junior

I got my yearly statement from them on Friday and it included a letter advising their different rates for existing customers. A 3 minute phone call later I was on a 3.3% variable down from a 3.7% variable with their loyalty programme. If your mortgage was over 200k you were eligible for an even lower rate. Fantastic bank to deal with I must say. 3.19% if I had gone for a fixed rate, glad I didn't now.

JTMan

Dave147 wrote: »

Just starting a mortgage with them, we're 8k below threshold, wonder will they be nice and give us this rate, will save us €60 a month.

You will, most likely, need to get inside the LTV treshold first.

Clonmel1000

Currently in a fix d with AIB 11 down 14 to go. Could/should I switch to Ulster bank?

JTMan

Clonmel1000 wrote: »

Currently in a fix d with AIB 11 down 14 to go. Could/should I switch to Ulster bank?

You will need to finish your fixed term with AIB first or pay an exit penalty to get out of your fixed rate.

mickoneill31

I'm with Ulster Bank. They are great. They're inefficient but I think many banks seem to have mortgage depts that don't seem to have much of a clue. When getting mine last year, I was beginning to question if my mortgage was the first one they'd ever done.

I'm on one of their loyalty rates. I was going to fix for 3 years at 2.9% and asked what would the rate be at the end of the term. I was on 3.2% when I asked this. I was told I wouldn't go back to the loyalty rate. I'd be put back at the SVR. If that was today it'd be 4.3%. But I could fix again at the end of the term if there was another good rate.

So just ask that question before agreeing to it. It doesn't make sense to me but the guy on the phone was sure and its what it says in the small print. The savings id make in the 3 years would be wiped out after a couple of months if I didn't fix again or switch.

thebackbar

mickoneill31 wrote: »

I'm with Ulster Bank. They are great. They're inefficient but I think many banks seem to have mortgage depts that don't seem to have much of a clue. When getting mine last year, I was beginning to question if my mortgage was the first one they'd ever done.

I'm on one of their loyalty rates. I was going to fix for 3 years at 2.9% and asked what would the rate be at the end of the term. I was on 3.2% when I asked this. I was told I wouldn't go back to the loyalty rate. I'd be put back at the SVR. If that was today it'd be 4.3%. But I could fix again at the end of the term if there was another good rate.

So just ask that question before agreeing to it. It doesn't make sense to me but the guy on the phone was sure and its what it says in the small print. The savings id make in the 3 years would be wiped out after a couple of months if I didn't fix again or switch.

100% agree with these sentiments in relation to Ulster bank.

They need to clarify what interest you will be offered when you come off the the fixed rate ! If someone finished the fixed part of their mortgage with Ulster bank now are they forbidden from applying for the loyalty rate ?

Supercell

Just switched to 3% fixed with BOI for next three years so slightly miffed! Still was on 3.6% before that so still knocking some time off the mortgage (kept payments at same level)

Heisenberg1

Clonmel1000 wrote: »

Currently in a fix d with AIB 11 down 14 to go. Could/should I switch to Ulster bank?

You shouldn't be charged a penalty if your repaying the entire mortgage.

bromley52

I can see ulster bank eventually pulling out of the irish market.

Dave147

JTMan wrote:

You will, most likely, need to get inside the LTV treshold first.

I wasn't able to read the end of the article without signing up, we're 80% LTV and haven't drawn down fully yet and haven't started our repayments but we did sign on for 3 year fixed at 2.99% so is it a case of tough **** for us or would they be able to give us the better rate. Bank manager is on holidays for another week and a half otherwise I'd drop him an email.

Cyrus

every bank will tell you you go onto sv after a fixed rate, you need to renegotiate at the time.

Wesser

Wohoo!!!

LeChienMefiant

How does this compare to ufirst gold discount?

JTMan

Dave147 wrote: »

I wasn't able to read the end of the article without signing up, we're 80% LTV and haven't drawn down fully yet and haven't started our repayments but we did sign on for 3 year fixed at 2.99% so is it a case of tough **** for us or would they be able to give us the better rate. Bank manager is on holidays for another week and a half otherwise I'd drop him an email.

You should have a 30 day cooling off period. Act fast. If the manager is not around speak to someone else.

Shefwedfan

It is a fixed rate mortgage, they are doing this because they expect the other vendors will drop there rates. They hope people sign up before everyone else drops there rates.

There flexible rates are still just matching KBC if you borrow over 200k.

There saving accounts etc don't seem to offer anything better than KBC, 3% on a saver account from KBC seems a lot better than anything Ulster are offering

I would expect other banks to drop rates so I would not be signing up to any fixed rate mortgages at the moment.

Berberis

Cheers op
just ordered 5 houses. Hopefully they'll honour the deal:D

wordofwarning

Banks are pushing customers to fix, as they are seeing competition heating up in the market. There are two other firms wanting on a license to give out mortgages. CUs are pushing to give out mortgages. Banks want you to fix, as they are seeing that rates will drop further. The ECB is showing no sign of hiking rates for years to come. It makes no sense to lock in fixed rates to protect yourself from rate hikes that are not coming for 2/3 years

In a few weeks, KBC, BOI and AIB will have slashed their rates on par with UB

thebackbar

wordofwarning wrote: »

Banks are pushing customers to fix, as they are seeing competition heating up in the market. There are two other firms wanting on a license to give out mortgages. CUs are pushing to give out mortgages. Banks want you to fix, as they are seeing that rates will drop further. The ECB is showing no sign of hiking rates for years to come. It makes no sense to lock in fixed rates to protect yourself from rate hikes that are not coming for 2/3 years

In a few weeks, KBC, BOI and AIB will have slashed their rates on par with UB

I thought that an ECB rate rise was expected in 2018 ?
The Irish Central Bank seems to be very slow to allow new entrants into the market, when is it expected that those banks will get their licensees ?

JoeyJJ

The ECB rate didn't affect non tracker mortgages on the way down surely shouldn't affect it on the way back up, however this is Ireland isn't it.

LeChienMefiant

Just switched variable rates with UB on the back of this thread. Saved 0.45% on my rate. Every little helps!

Looking into switching to EBS in the coming weeks/months.

listermint

LeChienMefiant wrote: »

Just switched variable rates with UB on the back of this thread. Saved 0.45% on my rate. Every little helps!

Looking into switching to EBS in the coming weeks/months.

2 switches , is that not costly ?

LeChienMefiant

listermint wrote: »

2 switches , is that not costly ?

In not aware of any cost to switch rates with Ulster. I'm not changing bank.

bk

thebackbar wrote: »

I thought that an ECB rate rise was expected in 2018 ?

It is always possible, but very unlikely. Brexit is having a big negative impact on rates.

Even if they do go up, you are only likely to see a .25% increase. The long term outlook is very low rates.

The thing is, even if ECB rates go up, it is likely to be cancelled out by increased competition. Compared to the rest of Europe, Irish rates are still extremely high. With the economy doing so well, the banks here are starting to make fat margins on those high rates and other companies are looking at entering the market.

So while ECB rates might slightly increase, the reality is increased competition in the Irish mortgage market is likely to drive down rates here.

An Ri rua

LeChienMefiant wrote:

Just switched variable rates with UB on the back of this thread. Saved 0.45% on my rate. Every little helps!

0.45% on a mortgage rate of perhaps a multiple of 7 is a lot, not a little

LeChienMefiant

An Ri rua wrote: »

0.45% on a mortgage rate of perhaps a multiple of 7 is a lot, not a little

True, 3.65% to 3.2%. Just shy of 12.5% discount.

Now I have to decide if I give up my uFirst Gold A/C. It costs €14 per month. Main benefit was a 0.5% discount on mortgage. We also get family travel insurance and 25% ticketmaster cashback.

ct5amr2ig1nfhp

Sounds interesting. What two firms are looking for a licence?

wordofwarning wrote: »

Banks are pushing customers to fix, as they are seeing competition heating up in the market. There are two other firms wanting on a license to give out mortgages. CUs are pushing to give out mortgages. Banks want you to fix, as they are seeing that rates will drop further. The ECB is showing no sign of hiking rates for years to come. It makes no sense to lock in fixed rates to protect yourself from rate hikes that are not coming for 2/3 years

In a few weeks, KBC, BOI and AIB will have slashed their rates on par with UB

JTMan

wordofwarning wrote: »

It makes no sense to lock in fixed rates to protect yourself from rate hikes that are not coming for 2/3 years

A Bloomberg survey of economists and analysts think that the ECB will increase rates in Q4 2018.

wordofwarning wrote: »

In a few weeks, KBC, BOI and AIB will have slashed their rates on par with UB

No guarantee that KBC nor BoI nor AIB will price match the 2.6% Ulster Bank offer. It would require a large drop from their existing rates.

MayoSalmon

JTMan wrote:

think that the ECB will increase rates in Q4 2018.

They wish, with Trump and Brexit, ECB rate will still be below 1% in 10 years time

cojomo2

Just changed to a 5 yr fixed with kbc last week...is there any cooling off period for this !?

JTMan

cojomo2 wrote: »

Just changed to a 5 yr fixed with kbc last week...is there any cooling off period for this !?

There should be a 30 day cooling off period. Act fast.

B-D-P--

Well balls, I just signed up to the 2.9% 3 year term in january...
Ahh sure still good rate.

Cuddlesworth

Hayley Grumpy Sequel wrote: »

Sounds interesting. What two firms are looking for a licence?

Frank Money is one. The Central bank has been sitting on their application so long that they either have something very wrong with their model or there is some serious deliberate blockading going on for new entrants into the market.

mydiscworld

Do we know if it's just the fixed rate that's changing or variables too?

Chris_5339762

Cuddlesworth wrote: »

Frank Money is one. The Central bank has been sitting on their application so long that they either have something very wrong with their model or there is some serious deliberate blockading going on for new entrants into the market.

According to the Fair Mortgage Rates Campaign, Frank Money has withdrawn their application

phunkadelic

Chris_5339762 wrote: »

According to the Fair Mortgage Rates Campaign, Frank Money has withdrawn their application

They were waiting a long time to get in, seems to be hard to get in and compete with the big banks

ct5amr2ig1nfhp

Frank Money has withdrawn their application. Who was the second seeking a licence?

Cuddlesworth wrote: »

Frank Money is one. The Central bank has been sitting on their application so long that they either have something very wrong with their model or there is some serious deliberate blockading going on for new entrants into the market.

WayneEnterprise

Hayley Grumpy Sequel wrote: »

Frank Money has withdrawn their application. Who was the second seeking a licence?

Finance Ireland I think

ct5amr2ig1nfhp

Is this the Macquarie group or another company. On phone so will google them later.

WayneEnterprise wrote: »

Finance Ireland I think

JTMan

WayneEnterprise wrote: »

Finance Ireland I think

Finance Ireland already have a license from the CBI.

Finance Ireland are launching a mainstream mortgage product later this year apparently.

Big Wex fan

Please correct me if I'm wrong but was Ulster bank not one of the banks that would not do any deals with customers who found themselves in trouble when things went south. I heard they were really hard nosed about getting every cent back, no compromise at all. (From casual chat, no hard facts to back it up)

Cyrus

Big Wex fan wrote: »

Please correct me if I'm wrong but was Ulster bank not one of the banks that would not do any deals with customers who found themselves in trouble when things went south. I heard they were really hard nosed about getting every cent back, no compromise at all. (From casual chat, no hard facts to back it up)

I wouldn't have an issue with that

bk

Article here about the Irish mortgage market and how it is ripe for new competition and lower rates:

http://www.independent.ie/business/personal-finance/property-mortgages/macquarie-predicts-bleak-growth-prospects-for-irish-banks-35940429.html

Analysts Namita Samtani and Piers Brown point out that Irish customers pay over 3pc for a new variable mortgage rate, but UK consumers avail of similar loans priced at less than 1pc.

Macquarie argues this "is unsustainable from a competitive basis, given that the euro market is open to all EU banks".

marketty

Big Wex fan wrote:

Please correct me if I'm wrong but was Ulster bank not one of the banks that would not do any deals with customers who found themselves in trouble when things went south. I heard they were really hard nosed about getting every cent back, no compromise at all. (From casual chat, no hard facts to back it up)

Maybe that's why they are able to drop their interest rate like this, while other banks who don't pursue defaulters are subsidising those non performing loans with high SVRs

cojomo2

Interesting thread - thanks for the heads up OP.


Last week I switched from a 3.05% variable to a 5 yr fixed @ 3%.. however I can get out of it and go back to the variable by availing of the cooling off period.

I can't avail of the Ulster bank deal as my mortgage falls just under their 300k minimum.

Not as up to date as I should be on this stuff, should I avail of the cooling off period and go back to the variable in the hope my bank react to this and reduce their rates?

Thanks!

JTMan

How far under 300k are you?

If you are only slightly under 300k, you could:
(1) Ask Ulster Bank if they will lend you 300k (banks can lend you more than your existing mortgage when switching provided you are inside LTV bands and the bank agrees to the extra debt).
(2) Use the cooling off period and get out of the fixed rate,
(3) Switch to Ulster Bank 2.60% Fixed.

kala85

Why are they restricting it to over 300k

celticbhoy27

cojomo2 wrote: »

Interesting thread - thanks for the heads up OP.


Last week I switched from a 3.05% variable to a 5 yr fixed @ 3%.. however I can get out of it and go back to the variable by availing of the cooling off period.

I can't avail of the Ulster bank deal as my mortgage falls just under their 300k minimum.

Not as up to date as I should be on this stuff, should I avail of the cooling off period and go back to the variable in the hope my bank react to this and reduce their rates?

Thanks!

I'm assuming you mean 3.5% ? And not 3.05. it's hard to guess where rates will be in 5 years time but I wouldn't be fixing just yet. Hopefully this is the beginning of a more competitive market

cojomo2

celticbhoy27 wrote: »

I'm assuming you mean 3.5% ? And not 3.05. it's hard to guess where rates will be in 5 years time but I wouldn't be fixing just yet. Hopefully this is the beginning of a more competitive market

Nope, 3.05%..I wasn't switching for the .05% reduction..but more fir the certainty of a relatively low rate for the next 5/yrs.

celticbhoy27

cojomo2 wrote: »

Nope, 3.05%..I wasn't switching for the .05% reduction..but more fir the certainty of a relatively low rate for the next 5/yrs.

What bank are you with? As I said it's difficult to guess long term how rates will go. I'd be inclined to hold off for a few months however.