Will Ulster bank do deals or make a huge loss on Offset Flexible Tracker Mortgages.

fliball123

https://www.boards.ie/discussion/comment/121127240#Comment_121127240

You tell them it was one of the terms and conditions when you signed up tell them it was pointed out to you as an option its a one time move you will not be able to do it twice and then let them come back to you as if they cannot find it they will have to take your word on it as in the end it is one of the terms and conditions I remember the guy in ulster bank saying he had to go and look at actual paper work to see this as its not any where on their computer systems.

fliball123

https://www.boards.ie/discussion/comment/121127274#Comment_121127274

This is not correct you can get the additonal borrowing on the the same rate I did it in 2020 and upped my mortgage by more than 180k on the current tracker rates. This was in the original terms and cons of the old first active mortgages

phormium

https://www.boards.ie/discussion/comment/121128947#Comment_121128947

Must have a read, still have a copy of t&c. An even better deal then that I remembered!

aoraki

https://www.boards.ie/discussion/comment/121127240#Comment_121127240

Are Ulster Bank still underwriting new lending? I'm curious myself about this but I'd be surprised if you would get a new loan sanctioned at this point. Might be wrong though.

And in all my dealings with Ulster Bank about the offset mortgages, it was always the staff that were ex-First Active that were the most knowledgeable about this product and knew all the ins and outs. The Ulster Bank staff that didn't come from First Active were largely clueless about this product. In my limited experience anyway!

fliball123

https://www.boards.ie/discussion/comment/121134642#Comment_121134642

If your mortgage is still with them they have to its one of the terms and cons of the original First Active mortgage. When asking just say that this was in the original tems and cons explained to you by the person in First Active and they have to honor it, its then up to them to find the information which will back up your right under contract to use this option.

aoraki

https://www.boards.ie/discussion/comment/121134651#Comment_121134651

I know in the T&Cs that you can transfer the mortgage to another property but I would have assumed that would be subject to underwriting (as opposed from drawing down your available facility which didn't require underwriting). And I didn't think they were underwriting new lending anymore.

fliball123

https://www.boards.ie/discussion/comment/121134754#Comment_121134754

Its not new business its part of existing business as an option for the person to use they have to honor this

Cal07

https://www.boards.ie/discussion/comment/121125688#Comment_121125688

I also did that - 4yrs since April but its included in the original First Active T&C's. A friend fairly high up in UB advised me (OTR) as UB mortgage was trying to increase the rate but I maintained current rate and I was able to increase the mortgage significantly given loan to value on new property.

Cal07

Any updates out there regarding the future of the off-set tracker mortgages? Is it just going to be status quo for the next few years.

kenif

No updates.

Ulster bank are now earning 5.65% on these mortgages. Or even if you have a large deposit they are earning 4% on that.

These mortgages are a lot more attractive now than when they first announced their withdrawal. I don't know how badly they want rid of the Irish banking licence, or the costs involved in holding one. But my hope of some sort of worthwhile deal is fading.

aoraki

https://www.boards.ie/discussion/comment/121164561#Comment_121164561

Are the bank making money on these if you are offsetting the entire mortgage? The ECB deposit rate is less than the borrowing rate.

kenif

On your particular mortgage yes. Your money is already borrowed and now they are getting 4% on your deposit. It maybe a simplistic approach but Ulster Bank Ireland are no longer borrowing in any real way.

aoraki

https://www.boards.ie/discussion/comment/121165222#Comment_121165222

But if the mortgage gets transferred to another bank, is the buying bank gonna be paying for those mortgages from money they have to hand? Or are they gonna need to borrow that money from the ECB? And if it's the latter will they be borrowing at most recent rates? Genuine question, I'm not sure how deals like this are structured and financed by the banks involved.

kenif

Me either. But they will have to get the deposits also and run the linked accounts. It will largely depend on the difference between loan value and deposits. So if it's a big enough write down then maybe. My guess and it's a pure guess is that Ulster Bank will keep the licence and ring fence this loan book. Then just see it out making a decent profit over the next few years using UK staff.

Jim2007

https://www.boards.ie/discussion/comment/121165222#Comment_121165222

Absolute nonsense. You have no understanding of how financial products are constructed nor financed and I'm saying that after sending over three decades in banking.

You don't finance long term products with deposits nor rely on the ECB, who at best is a lender of last resort.

Jim2007

Closing this thread as it is has run it's course. Do not try to reopen it.