Ulster Bank is increasing interest rates for its fixed mortgage products and removing the seven-year fixed rate offering for its remaining customers in the Republic of Ireland.
The bank said it would increase the two and four-year fixed rates by 0.75 per cent from today, with the four-year fixed rate on its green mortgages also rising.
Customers who are on Ulster Bank’s variable rate mortgages are not affected.
The original rates offered will be honoured for existing customers who have applied but not completed the switch, as will those customers who have fixed rates expiring up to the end of October.
“We are announcing today a rate increase of 0.75 per cent on our two and four-year fixed rate mortgages and four-year Green mortgage fixed rates and that we will no longer offer a seven-year fixed rate product to existing customers. Our remaining variable rates will remain unaffected,” said Ulster Bank’s managing director of personal banking, Philip Duff.
The bank is winding down its operations here as it withdraws from the Republic of Ireland. Ulster Bank stopped accepting mortgage applications from new customers from May 1st, offering borrowing only to existing customers who wanted to switch products and existing offset customers seeking additional borrowing.
The customers affected by this change are primarily those left to transfer to AIB as part of the bank’s exit. Ulster Bank sold almost €16 billion of mortgages and commercial loans to this bank, as well as Permanent TSB, with the transfer already completed.
Ulster Bank also has a number of so-called offset mortgages still on its books, where money in customers’ savings accounts is used to lower the balance – and interest due – on home loan accounts. These customers are unaffected by the rate rise, as fixed rates are not open to them.