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Ulster Bank Fixed vs Variable

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  • 17-04-2019 4:21pm
    #1
    Prospector1989
    Registered Users Posts: 212 ✭✭


    We have been approved for our mortgage a few weeks and opted for the Loyalty 5 year fixed rate with Ulster Bank @2.85%.

    Our solicitor received our loan pack. The pack had the rate as Variable @3.7%.

    We received a letter from our broker stating that once we drew down the funds we could then move to the previously agreed fixed term rate. We have passed this on to our solicitor to advise.

    The letter states the reasoning for the variable offer is to do with the fact we're getting an exemption to the 3.5 times the salary.

    Has anyone ever come across this before? It seems very strange to say the least.


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    #2
    CitizenFloor
    Registered Users Posts: 321 ✭✭CitizenFloor


    Pretty much the same situation here, with a slight difference. I was approved for an exemption with Ulsterbank. I asked for a Fixed Rate, and was told that I could not get it with the 3.5 exception, but I could draw down on the Variable, and then fix immediately any time I wanted.
    So, I plan on fixing as soon as I draw down.

    Please pass me on any pertinent advice from your solicitors XD.


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    #3
    Jack_92
    Registered Users Posts: 41 ✭Jack_92


    I was in the same position, my broker told us that we have to go variable first otherwise I wouldn't be able to secure an exemption with UB, but eventually got a full loan offer stating fixed rate. I guess speak to your broker or bank directly.


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    #4
    bellatrix1
    Registered Users Posts: 34 ✭bellatrix1


    Yes. It's very strange. But it happened to me
    too. Basically the rates are offered to LTI of 3.5. So if you are getting an exemption your LTI is higher. 4x salary etc. But, immediately after drawdown you can apply for a fixed rate. I applied online myself today and was offered the 2 year fixed at 2.3% which I jumped at. So stick with the variable rate on loan offer and soon as drawdown is complete go online with mortgage account number and switch to fixed. HTH


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    #5
    Prospector1989
    Registered Users Posts: 212 ✭✭Prospector1989


    bellatrix1 wrote: »
    Yes. It's very strange. But it happened to me
    too. Basically the rates are offered to LTI of 3.5. So if you are getting an exemption your LTI is higher. 4x salary etc. But, immediately after drawdown you can apply for a fixed rate. I applied online myself today and was offered the 2 year fixed at 2.3% which I jumped at. So stick with the variable rate on loan offer and soon as drawdown is complete go online with mortgage account number and switch to fixed. HTH

    Perfect. Thanks for this. Was there much hassle with switching? Did they look for more documentation or anything?


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    #6
    bellatrix1
    Registered Users Posts: 34 ✭bellatrix1


    Not so far. I am just waiting on official approval to switch rate. When you log online you can sée your recent valuation etc so that's all they need. Of course your rate depends on your LTV. I am a second time buyer so my ltv is 79%

    Message for my t-shirt I tried to reply to your pm but your inbox is full


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    #7
    bellatrix1
    Registered Users Posts: 34 ✭bellatrix1


    Not so far. I am just waiting on official approval to switch rate. When you log online you can sée your recent valuation etc so that's all they need. Of course your rate depends on your LTV. I am a second time buyer so my ltv is 79%

    Message for my t-shirt I tried to reply to your pm but your inbox is full


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    #8
    Prospector1989
    Registered Users Posts: 212 ✭✭Prospector1989


    bellatrix1 wrote: »
    Not so far. I am just waiting on official approval to switch rate. When you log online you can sée your recent valuation etc so that's all they need. Of course your rate depends on your LTV. I am a second time buyer so my ltv is 79%

    Message for my t-shirt I tried to reply to your pm but your inbox is full

    Perfect. Will make sure we get over the line with the mortgage first but at least we know it appears to be happening for others. We're first time buyers but our LTV will be <80% based off the current valuation.

    Cheers!


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    #9
    august12
    Registered Users Posts: 1,275 ✭✭✭august12


    Prospector1989 wrote:
    Perfect. Will make sure we get over the line with the mortgage first but at least we know it appears to be happening for others. We're first time buyers but our LTV will be

    This appears to be standard with UB, same here, had applied for 2 year fixed but package stated variable and exemption did not apply to me, anyway, I stayed with the variable rate because there was no difference in my case i.e. BTL mortgage but as others have confirmed, change once drawdown.


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    #10
    bellatrix1
    Registered Users Posts: 34 ✭bellatrix1


    Just an update. Got email confirming I am now on 2year fixed. Best of luck


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    #11
    Prospector1989
    Registered Users Posts: 212 ✭✭Prospector1989


    bellatrix1 wrote: »
    Just an update. Got email confirming I am now on 2year fixed. Best of luck

    We just got word (at last) that Ulster Bank have released the funds. Our solicitor is expecting them to arrive today or tomorrow.

    Did you use the "Manage your Mortgage" thing on the website?

    Did you have to register for it, or was it available immediately?


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    #12
    bellatrix1
    Registered Users Posts: 34 ✭bellatrix1


    Ye you need your mortgage account number. Once funds are released to solicitor.. Try to register the next day. It will let you then change your rate. They will send you an email the next day confirming rate change. Be careful because if you pick fixed you can't change your mind so just be sure its definitely the rate you want.


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    #13
    Prospector1989
    Registered Users Posts: 212 ✭✭Prospector1989


    Perfect cheers! Will try get online tomorrow to have a look!


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    #14
    Prospector1989
    Registered Users Posts: 212 ✭✭Prospector1989


    Have access to it now. 2 years at 2.3% is tempting but may be too short.
    Also have the option of 4 years at 2.6%
    Or 5 year loyalty at 2.85%.


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    #15
    Prospector1989
    Registered Users Posts: 212 ✭✭Prospector1989


    Meant to follow up for anyone else in this situation. We successfully switched to the 5 year loyalty rate at 2.85%. (salary paid to an Ulster Bank account for loyalty rate)


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