Business

Ulster Bank mortgage holders consider moves as bank set to leave Irish market

With Ulster Bank reviewing their position in the Irish market, many of their mortgage holders are looking at moving their mortgage to another lender for a greater sense of security.

This is according to brokers MyMortgages.ie who say that, in the last week alone, they have received an influx of calls from mortgage holders with the lender, asking whether or not they should be looking to move their mortgage to a different bank and what their options are.

The mortgage experts have advised that, although no immediate action is required, this could be the perfect opportunity for thousands of mortgage holders to review their current contract with a view to switching to a better rate.

Joey Sheahan, Head of Credit with MyMortgages.ie and author of The Mortgage Coach explained: “Although the future of Ulster Bank is still unclear, even if they do decide to exit the Irish mortgage, they will still have a duty of care to current customers and obligations to fulfil in that regard, so mortgage holders should not be worried or anxious.

“That said, it would be prudent to look at this time as a chance to review your current position mortgage-wise — primarily, what rate you are paying, and how this compares to what is currently being offered in the market. Although Ulster Bank’s possible departure from the Irish mortgage market would not be a positive development in the Irish banking sector — particularly, from both a competition and an employment perspective, the uncertainty surrounding Ulster Bank’s future could at least turn out to be a beneficial wake up call to mortgage holders who are paying rates in excess of what they could get elsewhere.”

MyMortgages.ie say the arrival of Avant Money to the market, has seen many mortgage holders with mature mortgages, and/or a strong loan to value, switch to exceptional market-beating rates.

Options

Mr Sheahan advised: “We are advising all Ulster Bank customers to review their options. And not to let whether they are on a fixed or variable rate stop them — as they may well still have options to move.”

MyMortgages.ie have set out an example of savings on an interest rate reduction of two per cent. By switching from a 4.2 per cent variable rate to a three-year fixed rate of 2.2 per cent, loan to value of 80 per cent or lower, a mortgage holder with a loan of €350,000, over 30 years, can save over €384 per month, €3,732 per year or €14,897 over 4 years.

Source:

www.breakingnews.ie

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button