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Ulster Bank pushes up fixed rates for the second time in three months


Ulster Bank is putting up its fixed rates. Photo: John Walsh

Ulster Bank is putting up its fixed rates. Photo: John Walsh

Ulster Bank is putting up its fixed rates. Photo: John Walsh

DEPARTING Ulster Bank is to again increase the interest on its fixed-rates mortgages.

The rises are between 0.4 percentage points and 0.9 percentage points and will be effectively immediately.

The bank is also removing what it called its Loyalty variable rate which had been available to customers who had an income mandated to an Ulster Bank current account.

Its removal from sale will not impact those customers who already have a Loyalty variable rate mortgage, the bank said.

The new Ulster Bank rates apply only to its existing mortgage customers as the departing bank is no longer offering mortgages to new customers.

Higher fixed rates will mean those coming to the end of an existing fixed rate, or those on another rate who want to fix, now face much higher rates.

Tracker mortgage customers, as well as those on variable rates, or with fixed rates expiring, can apply for a fixed rate

Those with offset mortgage customers can’t switch to a fixed interest rate, Ulster Bank said.

The offset mortgage allows a customer to move home or seek a further advance while keeping their offset arrangement. But applying for a fixed rate would mean a completely new mortgage, which Ulster said it no longer offers to customers.

This is the second rate rise from Ulster Bank.

In November it increased its fixed rates far more than other banks.

The two, four and seven-year fixed rates went up by 0.75 percentage points.

Now the two-year fixed rate is to go up by 0.9 percentage points. There is a 0.6 percentage point rise for the four-year fixed rate and four year fixed green mortgage. And a 0.4 percentage point rise on the seven-year fixed rate mortgage.

Variable rates are not changing.

Those on a loyalty rate can keep that rate, the bank said. This rate ranges from 3.1pc to 3.6pc.

The bank said that for existing customers who have either applied for a fixed rate and are awaiting a loan offer or who have not yet completed their product switch, the original rates will be honoured by it.

Customers with fixed rates expiring on March 31 next will be able to access the original rates up to the date of expiry of their current rate.

Ulster Bank said this is to recognise the fact that they may have planned to select one of its existing rates but may not have chosen one.

Ulster Bank has sold its non-tracker mortgages to Permanent TSB, and its trackers to AIB.

Some of the loans have already transferred to the two banks, with others yet to be transferred.

Permanent TSB, Bank of Ireland, AIB, Avant Money, Finance Ireland and ICS Mortgages have increased their fixed rates, with AIB also raising its variable rates.

Non-bank lenders such as ICS and Finance Ireland were the first to announce increases and now have some of the highest rates on the market.

Ulster Bank said customers with queries can call its mortgage team for support and further information on 0818 210 275.

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