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Mortgages

Ulster Bank announces new mortgage rate cuts

Daragh Cassidy

Daragh Cassidy

Head Writer

The bank now has the lowest fixed rate for first-time buyers over four, five and seven years.

It’s been tough keeping on top of all the mortgage news here at bonkers.ie over the past few months. 

Permanent TSB launched a new seven-year fixed rate a few months back and last month Haven announced that it will start offering mortgage customers the choice of a fixed rate over seven and 10 years too. And KBC recently slashed its 10-year fixed rate for first-time buyers by 0.55%. Then today we have news that Ulster Bank is reducing some of its fixed mortgage rates, having reduced one of its key variable rates in July

What’s changing?   

Ulster Bank is reducing its five-year and seven-year fixed rates for first-time buyers while maintaining its market leading rates over two and four years.

The changes mean a first-time buyer who takes out a mortgage of €225,000 over 30 years would save over €440 a year by availing of the new seven-year rate for example. 

Ulster Bank has also reduced the loan amount required to avail of its high-value, five-year rate of 2.50% from €500,000 to €300,000.  

The bank has also sought to clarify the rates it’ll offer to those seeking an exemption to the Central Bank’s mortgage lending rules. You can find out more about those rules here.

FTB - 4 Year Fixed Rate <=90% LTV (Fixed until 31/12/2023)

FTB - 4 Year Fixed Rate <=90% LTV (Fixed until 31/12/2023)

  • First Five Mortgage Offer
  • Rate not available to those seeking an LTI exemption
  • Free home valuation
  • €25,000 life insurance in year 1
  • Up to 50% off home insurance
  • €1,500 towards legal costs
Fixed rate
2.60%

Unfortunately Ulster Bank has decided that those seeking an exemption won’t be offered the same low rates as everyone else, though the rates on offer are still competitive.  

Name

New rate

Old rate

Change 

Exemption rate

2-year fixed rate

2.30%

2.30%

No change

2.45%

4-year fixed rate

2.60%

2.60%

No change

2.75%

5-year fixed rate ≤90% LTV

2.60%

2.99%

-0.39%*

2.75%

5-year fixed rate ≤80% LTV

2.60%

2.85%

-0.25%

2.75%

5-year high-value fixed rate

2.50%

2.50%

No rate change. Reduction in loan amount required

2.75%

7-year fixed rate ≤90% LTV

2.99%

3.29%

-0.30%

3.14%

7-year fixed rate ≤80% LTV

2.99%

2.99%

No change 

3.14%

*previously Ulster Bank current account customers could get a rate of 2.90%, which would mean a reduction of 0.30% for these customers.    

When do the new rates come into effect?

The new rates will be available from 11th September for first-time buyers, movers and switchers.  

The rates are available to new customers as well as some existing customers. So if you’re currently with Ulster Bank then give them a call to see what options are available to you.  

For example, according to Ulster Bank, an existing customer with a €200,000 mortgage over 20 years on its standard variable rate of 4.30% could save €174.23 per month or €2,090.76 per year for five years by switching to its new five-year fixed rate of 2.60%.

Anything else?

On top of these rates, Ulster Bank continues to offer €1,500 cash towards customers' legal fees as well as free valuations, which would normally cost around €150, on all new mortgages. 

Customers of Ulster Bank can also choose to make overpayments on their fixed-rate mortgage by up to 10% a year if they wish. This means not only do you get peace of mind that your mortgage repayment will remain the same for the term that you choose, but you’ll also have the flexibility to pay more off your mortgage, and therefore save on your interest bill, should your personal finances improve.  

What’s more, Ulster Bank mortgage customers can also avail of a free online service that gives them more control over their mortgage. Manage My Mortgage claims to be the first online portal of its kind in Ireland and allows existing customers to make lots of changes in relation to their mortgage quickly and easily online. 

Customers can: 

  • Set up a regular overpayment on their mortgage
  • Make a lump sum overpayment
  • Change their payment date
  • Change their payment bank account
  • Request a Certificate of Interest
  • View their current mortgage balance
  • Check their loan-to-value amount
  • Switch to a new product and more!

Before you decide, always compare

Although the new rates from Ulster Bank might seem competitive, make sure you compare all rates across all lenders on bonkers.ie before you commit with our free, easy-to-use mortgage calculator.

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