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fixing mortgage????

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  • 24-09-2009 8:35pm
    #1
    crxsi
    Closed Accounts Posts: 72 ✭✭


    i have a tracker mortgage with Ulster Bank and was wanting to fix it now that monthly payments have dropped. Do you usually have to pay back a bit extra evry month in order to do this? And is it usually fixed for few years?
    can i switch back to tracker then without any fuss?
    Would i have to contact Ulster Bank to do this or go through broker?
    My original broker has closed so would i have to go to new broker so?

    thanks


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    #2
    Brian Capture
    Banned (with Prison Access) Posts: 827 ✭✭✭Brian Capture


    i don't know much about these things but I heard that one you leave a tracker mortgage it's gone for good.

    Banks do n't offer them anymore for new customers


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    #3
    Ogham
    Registered Users Posts: 1,844 ✭✭✭Ogham


    What rate are you paying now and how much is the mortgage? Also - do you have an idea of the value of the house?


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    #4
    Pablo Sanchez
    Closed Accounts Posts: 1,207 ✭✭✭Pablo Sanchez


    You will pay extra every month for the security of a fixed rate (this rate takes into account futher interest rate hikes) and as for your tracker, you can kiss it goodbye once you give it up.


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    #5
    alanmccormack
    Closed Accounts Posts: 14 ✭alanmccormack


    crxsi wrote: »
    i have a tracker mortgage with Ulster Bank and was wanting to fix it now that monthly payments have dropped. Do you usually have to pay back a bit extra evry month in order to do this? And is it usually fixed for few years?
    can i switch back to tracker then without any fuss?
    Would i have to contact Ulster Bank to do this or go through broker?
    My original broker has closed so would i have to go to new broker so?

    thanks

    Hi, I'm guessing that your mortgage repayments have dropped because your tracker mortgage has 'tracked' the ECB rate as it has gone down. Don't assume that fixed rates will be anything like your tracker rate. In fact I've just gone onto Ulster Banks Website and their fixed rates are as follows:
    Fixed Rate until 31 August 2011 4.20% fixed (4.00% APR)
    Fixed Rate until 31 August 2012 4.30% fixed (4.10% APR)
    Fixed Rate until 31 August 2014 4.95% fixed (4.50% APR)

    What is your tracker rate at the moment? How does it compare to the rates above? That will be the determining factor in deciding whether to move onto a fixed rate or not.

    The person who said that you won't be able to move back to the tracker later was correct. The last of the Tracker products disappeared in October 2008, the banks couldn't afford them.

    If you agree a fixed rate period of 3 years then you will have to stay on that rate for 3 years. If you attempt to leave sooner then you will pay a breakage fee and this could be quite expensive. When the fixed rate period expires you will 'roll onto' the bank's standard variable rate, which can be changed at the bank's discretion.

    If you just simply want to move onto an Ulster Bank fixed rate product, then I see no advantage in going to a broker, it would be easiest to approach your Ulster branch. I would only go to a broker if you're curious as to what else is out there. I have to declare some self interest here, as I'm a broker.

    DON'T give up that tracker without making sure that your new deal will be better for you. It's up to you to do the maths!


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