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Ulster Bank Switcher Mortgage

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  • 08-12-2004 12:02pm
    #1
    Dub13
    Moderators, Recreation & Hobbies Moderators Posts: 21,252 Mod ✭✭✭✭


    I am thinking about switching to Ulster Bank I am with IIB and I have read up on the Switcher Mortgage Ulster bank have and it seems a good deal,they will pay all the fees etc.So has anybody used this if so how did you find it...?

    Thanks


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    #2
    Eurorunner
    Closed Accounts Posts: 2,393 ✭✭✭Eurorunner


    You should note that your locked into the deal for 5 years once you switch. If you ring up your bank and tell them your going to switch they may just drop their rate in line with the one you will be getting - saving you the trouble of switching over.


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    #3
    threebeards
    Registered Users Posts: 1,040 ✭✭✭threebeards


    Eurorunner wrote:
    You should note that your locked into the deal for 5 years once you switch.

    That's completely inaccurate. The only way you'll be locked in for 5 years is if you decide to take a five year fixed rate. As long as you're on a variable rate, you can clear a mortgage whenever you like without penalty, however, you wouldn't want to be on a fixed rate with IIB because if you are, you'll be penalised for breaking it.

    As regards the 'Switcher' product, Ulster Bank (as do 5 or 6 other banks) uses Title Insurance to replace the costly conveyancing. It costs €985 (incl VAT) but Ulster Bank will pay for it. You will have to choose a solicitor from a panel and meet with him/her just once.

    Interest rate wise, Ulster Bank is pretty competitive with it's Tracker Mortgage products, especially if the loan to value of your house is less than 60%.


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    #4
    Eurorunner
    Closed Accounts Posts: 2,393 ✭✭✭Eurorunner


    Hold on.....by 'locked in', I mean't that you can't switch to another lender/mortgage without incurring penalties.

    Of course you can pay off the mortgage at any stage....


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    #5
    threebeards
    Registered Users Posts: 1,040 ✭✭✭threebeards


    Eurorunner wrote:
    Hold on.....by 'locked in', I mean't that you can't switch to another lender/mortgage without incurring penalties.

    Of course you can pay off the mortgage at any stage....

    The only penalty you would incur is the €985 Title Insurance fees which was paid for you in the first place - hardly a significant penalty.


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    #6
    Sarsfield
    Closed Accounts Posts: 1,359 ✭✭✭Sarsfield


    I used the UB Switcher Mortgage as a stick to beat my lender with (BOI). Told them I'd switch if they didn't match the UB offer. They matched it :D

    Saved the hassle of switching. Haggling is a perfectly acceptable form of doing business.


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    #7
    Dub13
    Moderators, Recreation & Hobbies Moderators Posts: 21,252 Mod ✭✭✭✭Dub13


    Sarsfield wrote:
    I used the UB Switcher Mortgage as a stick to beat my lender with (BOI). Told them I'd switch if they didn't match the UB offer. They matched it :D

    Saved the hassle of switching. Haggling is a perfectly acceptable form of doing business.


    I may try this with IIB....if it works no need to change,but IIB were one of the banks who charged the extra days intrest the last leap year so I cant see them going for it.


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    #8
    Eurorunner
    Closed Accounts Posts: 2,393 ✭✭✭Eurorunner


    The only penalty you would incur is the €985 Title Insurance fees which was paid for you in the first place - hardly a significant penalty.

    A grand is a significant sum as far as i'm concerned. Much better to do as sarsfield suggested ie get the better deal from your existing bank - which allows the flexibility to use the switching option at some future point should a better deal appear on the market.


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    #9
    threebeards
    Registered Users Posts: 1,040 ✭✭✭threebeards


    Eurorunner wrote:
    A grand is a significant sum as far as i'm concerned. Much better to do as sarsfield suggested ie get the better deal from your existing bank - which allows the flexibility to use the switching option at some future point should a better deal appear on the market.

    But my point being that in the greater scheme of things, €197 per year for each one of the 5 years isn't a lot. If Dub13 is on the standard IIB variable rate of 3.45%, depending on loan to value, he could potentially be in a position to avail of a 0.5% interest rate cut which I'd imagine would save a nice few €€€€ :):) . You're dead right, the ideal scenario would be get IIB to match the rate (and incidently, in that respect Dub 13, if you do take a big stick to IIB, tell them you're an Ulster Bank U-First Account holder because the rate you would be offered then [if the loan to value is less than 60%] would be 2.85%. Good luck with it!!


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    #10
    Dub13
    Moderators, Recreation & Hobbies Moderators Posts: 21,252 Mod ✭✭✭✭Dub13


    threebeards wrote:
    . You're dead right, the ideal scenario would be get IIB to match the rate (and incidently, in that respect Dub 13, if you do take a big stick to IIB, tell them you're an Ulster Bank U-First Account holder because the rate you would be offered then [if the loan to value is less than 60%] would be 2.85%. Good luck with it!!


    Thanks for the advice....I think my loan to value is around the 60% mark so I will chance my arm,thats some rate for an Ulster Bank U-First Account holder.


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