U Bank for PPOR debt..

Discussion in 'Loans & Mortgage Brokers' started by Clive Palmer's Yacht, 23rd Feb, 2021.

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  1. Clive Palmer's Yacht

    Clive Palmer's Yacht Well-Known Member

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    Got to admit, I'm a bit tempted by the 3yr 1.75% fixed on offer currently from U Bank. We may see further reductions in interest rate, but when you look at other markets offshore with rock-bottom base rates at 0.10% and low cost of bank funding (eg UK), this level of rate has been fairly common for several years and hasn't really dropped further.

    I've looked at U Bank in the past, but as an investor with a couple of chunky IO loans I was nowhere near passing serviceability so had to press the 'eject' button early on in their process after speaking with their application people.

    I've looked again though, and it appears (whilst the online initial screening pages are a bit high-level) they may have softened their criteria a bit in-line with others around the market.

    Anybody had recent experience with using them?

    Anything better out there in this ball park currently, noting U Bank don't offer an offset and *may* charge a fee for redraw?
     
    Clive Palmer's Yacht, 23rd Feb, 2021
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Many of my client base go AMP for 1.97 fixed with variable splits commensurate with their capacity to repayn and recycle, and use an active debt recycle strategy to kill the debt much more quickly than chasing around for a few points on effective rate.

    Such a strategy doesnt suit everyone.

    Ubank is the same product mix as some of our white label products with no advice provided and digital only distribution, and is very suitable for some borrowers and very unsuitable for others.

    ta
    rolf
     
    Rolf Latham, 23rd Feb, 2021
    #2
    Clive Palmer's Yacht likes this.
  3. Clive Palmer's Yacht

    Clive Palmer's Yacht Well-Known Member

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    Thanks Rolf. That's the perennial question..how much do you pay (or need to pay) for flexibility?

    Probably depends a fair bit on where you're at with asset accumulation I guess.
     
    Clive Palmer's Yacht, 24th Feb, 2021
    #3
  4. hammer

    hammer Well-Known Member

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    My understanding is that ubank is awesome if all you want to do is buy one home and live in it.

    If you want to buy IPs, shares etc and use your equity...then look elsewhere.
     
    hammer, 24th Feb, 2021
    #4
  5. Redwing

    Redwing Well-Known Member

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    A friend purchased an apartment (PPOR) using U-Bank last year, then accessed equity this year for an IP in WA's south-west, reportedly no issues with the process, and he's happy with the rate

    U-Bank
     
    Redwing, 31st May, 2021
    #5
  6. Frenchie

    Frenchie Well-Known Member

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    I think they only have a redraw and no offset product no?
     
    Frenchie, 1st Jun, 2021
    #6
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Nil offset

    ta
    rolf
     
    Rolf Latham, 1st Jun, 2021
    #7