An old first active current account mortgage

Seurat · 06-02-2022 7:03pm

I’m going to hop onto this thread. I switched in ~2007.

I have not been contacted at all by UB regarding a new current account but my understanding is that whoever takes over the mortgage must supply some sort of current/savings account as @phormium states.

I have not checked into other banks re current accounts, is this something ye have been doing? And if so wondering what CA would best serve this mortgage..

phormium · 06-02-2022 8:32pm

https://www.boards.ie/discussion/comment/118591416#Comment_118591416

I am going to open a c/a with CU I think to switch my direct debits to but I will leave the one attached to the offset and a savings account still open and wait and see what UBs solution is when time runs out! There will be sufficient between those 2 accounts to offset any interest charges on the mortgage so I expect some solution will have to be found by UB rather than just switching the mortgage and charging me interest!

TheAngryTechie · 27-05-2022 12:36pm

Hi all,

Ulster bank are leaving the Irish market. Has anyone had any joy in getting the Facility account terms and conditions from them? Do they have them?

I assume they do because if they don't know the rules around these mortgages, how can they apply them? Surely this would have been a requirement from the Central Bank when they took over these mortgages from First Active.

I have asked them to send me the terms because I want to have these to hand before they sell off my mortgage off to AIB or other.

I think its a reasonable request that they provide me with info about my mortgage. anyone else have problems getting info from them?

phormium · 27-05-2022 2:51pm

https://www.boards.ie/discussion/comment/119121505#Comment_119121505

I have the Facility account terms & conditions booklet, pretty standard stuff really, as far as I know they have not sold off any of the ordinary tracker mortgages yet and the offsets will be a particular problem for them so waiting to hear how they intend to address it. Maybe some other bank would be willing to allow an offsetting account attached to the mortgage or if not then they'll have to come up with some solution!

notthereyet · 21-06-2022 7:15pm

We Got a letter from SW today stating to change bank account, Child Benefit is paid in to this joint Bank account for years and mortgage is paid out of that that's all we use it for, I am reluctant to just close it down as It has been a great product as I have used the facility account cheap money a few times, surely we should be compensated for this loss

phormium · 21-06-2022 8:25pm

https://www.boards.ie/discussion/comment/119232179#Comment_119232179

I have a new current account set up elsewhere and all debits/credits other than mortgage payment changed. I will not be closing either my facility account linked to the mortgage or the savings account that is also linked until UB let us know how they are intending facilitating the move of these mortgages/offset accounts to another lender.

The issue of the 'available facility' drawdown amount is another question that needs to be answered by them as it's a feature of the product. I suspect it may come to them having to manage these some other way rather than sell them off to any other lender.

notthereyet · 22-06-2022 8:13am

Ya used the facility to buy my last 2 cars, cheap car loan and just paid more in to it the loan account each month

phormium · 22-06-2022 8:28am

https://www.boards.ie/discussion/comment/119233379#Comment_119233379

Excellent! That is exactly what it was meant to be for, things like that where you can pay home loan rate for items which normally attract a higher rate. Unfortunately so many people underused it and perhaps didn't really fully understand how to use it, it was an great product used correctly.

kerryjack · 31-08-2022 6:47pm

Just started moving banks here transfered wages first and started DD but Ulster bank are adamant to draw every last bit of blood out of us as I had 2 missed DD and they charged me 12.50 each not fair in the middle of a change over. Problem is I am reluctant to close it down as I feel we should be compensated a little for loosing this facility but I know well UB will keep charging us 4 euro a month for the pleasure.

phormium · 31-08-2022 9:35pm

https://www.boards.ie/discussion/comment/119549610#Comment_119549610

Actually that is a good point, they are still charging for the current/facility account even though many people myself included have moved payments/debits away from that account. I have not closed it and had no intention of until they sort out what's happening with the offset mortgages but that means I am paying 4 euro a month for something useless other than the offsetting. As I also have a savings account that offsets against the mortgage maybe I should close the facility and leave the savings account? Must ask UB that one!

We have to keep our offsetting arrangement or be compensated for the loss of it!

PS Actually just checked cos wondered about the 4 euro and anyway I pay 2 euro pm, in fairness for that I'll keep paying but might still query them on it!

Seurat · 28-09-2022 7:22pm

https://www.boards.ie/discussion/comment/119233416#Comment_119233416

@phormium @notthereyet I have a question for ye if ye don't mind

On my app it says I'm -80k on the mortgage and underneath says I have ~60k available

Does this mean I have basically been pre approved for a mortgage topup of upto 60k?

How do I go about getting some of that that? I presume no one in UB knows about this stuff?

Is it only allowed to be used for home renovations or can I use it for a cheap car loan?

I am looking into buying a new car and this would prove to be much much cheaper than a credit union loan - 2.65% (1.15%+ECB 1.5%) for the facility loan as opposed to 6-8% credit union loan

I presume essentially my mortgage repayment would just increase automatically from X to Y every month and I would have to do nothing else?

rameire · 28-09-2022 10:36pm

You have an available facility that you will be able to draw down.

You will need to make sure you have suitable life cover.

They may require some docs to process it but it's alot easier than looking for a fresh top up.

There are some Staff in Ulster that know about it. You just need to get past the fronline staff who may not know.

Yes your payments will go up. It will all be on your mortgage as 1 balance and not split.

Seurat · 28-09-2022 11:32pm

Thanks @rameire for that

So if I ring up the life insurance and make sure I am covered for mortgage amt due + what extra I draw down (upto 60k) there should be no issue?

Also is it ok to use for car loan or does it matter for what I use it?

rameire · 28-09-2022 11:37pm

You are OK I believe to use for car loan, New sofa, the next gas bill.

Check the life cover you currently have, if it covers the current and wanted get that in a document.

If it doesn't get quotes to cover the rest but don't get it in place until you speak to the Bank.

phormium · 28-09-2022 11:46pm

You can use it for whatever you like but if for example you used it for a car then you should ideally increase the payments to cover clearing the extra amount in the same term you would have if it was a car loan so say 5 yrs for example. Otherwise you are financing a short term asset onto a long term debt and not saving yourself as much as you should. The big saving is that you will have the 'car loan' at home loan rates.

If you're using it for home improvements then this doesn't matter obviously.

Seurat · 29-09-2022 1:25pm

Thanks @rameire and @phormium for that advice.

I rang up the bank and they said I just need to send in a letter stating how much I want, what bank account it is to be paid into and the life insurance details to show K am covered for the new full amount.

Interesting he said I need also to state the reason for the drawdown

phormium · 29-09-2022 2:20pm

https://www.boards.ie/discussion/comment/119680269#Comment_119680269

A box ticking exercise I would imagine to show prudent lending should the need ever arise. Imagining UB being in front of a judge in a repossession case, yes your honour we gave Seurat €xxxx to put on the gee gees! Wouldn't go down well for them! 😀 Just give them a logical reason for the drawdown that they can put on file.

Seurat · 29-09-2022 7:12pm

Yeah that's what I was thinking

I'll leave putting it on the horses to others!!!

An old first active current account mortgage

Comments