Implications for current account holders if Ulster Bank closes?

I've been with UB my entire banking life, current account, deposit account, credit card and mortgage. How will tracker rates be dealt with if the loan book is sold?
Don't relish the thoughts of having to find a new bank.
 
Should people go to limit of their overdraft and stay there - get salary etc paid into another account?
 
Well I for one will miss Henry Hippo....Good memories.

It is a real shame to see this happen. Some great people working in Ulster Bank. Hopefully large chunks of it will be able to be sold off and as many jobs as possible saved. Good opportunity for Permanent TSB to become a serious competitor to AIB and BOI if they are allowed and able to take over part of it. With persistent doubts over KBC, we need a strong third banking player.
 
HollowKnight said:
Saw that in the news today and thought it was surely illegal from a anti-competition POV.
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The state can't compel a private entity to continue offering a service, even if its loss would result in increased market concentration.

The state could (probably) offer a subsidy available to all banks to keep branches open or the like. But that wouldn't be a good idea.

Mrs Vimes said:
If AIB buy IB mortgages, this puts me in a position I do not want to be in, in that my current account would not be as separate from my mortgage account as I like.
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In practical terms how would it make any difference?
 
Sunny said:
Well I for one will miss Henry Hippo....Good memories.

It is a real shame to see this happen. Some great people working in Ulster Bank. Hopefully large chunks of it will be able to be sold off and as many jobs as possible saved. Good opportunity for Permanent TSB to become a serious competitor to AIB and BOI if they are allowed and able to take over part of it. With persistent doubts over KBC, we need a strong third banking player.
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What are the KBC doubts?
 
My first thought is the staff obviously, having previously being one even if very briefly! It won't be easy get another job in a banking area, it hasn't been easy for last 10+ yrs not to mind now. Other than that I have a very nice little system going with my UB accounts of which I have about 8, pain having to try and replicate that. Also wondering how the Offset/Current Ac mortgage will be dealt with as the reason it works is because it's linked to several of those accounts. That link will surely have to be broken if mortgages and current accounts go their separate ways to different institutions.
 
Monbretia said:
Also wondering how the Offset/Current Ac mortgage will be dealt with as the reason it works is because it's linked to several of those accounts.
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I would suggest looking at what happened with Danske Bank.
UB certainly will look at it, to understand what they did positive & negative.

Danske didn't sell the offset mortgage book initially, and then at end of 2019 to hurry things up they offered a 30% discount to some customers to clear their offset mortgage. The discount reflected both the offset and the low teacher margin (as low as 0.5% in some cases).

For a sense of timescale - this offer was 6 years after Danske announced they were exiting!
 
Mrs Vimes said:
If AIB buy IB mortgages, this puts me in a position I do not want to be in, in that my current account would not be as separate from my mortgage account as I like.
I may have to move my current account
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Why would having a current account and mortgage with the same bank be a problem? In many cases this is an advantage to you, e.g. KBC offer a discount of 0.2% on mortgage rates with a current account, AIB give fee free banking on the account
 
Interesting! I wasn't aware of how Danske handled it, funny enough I had thought myself the likely way to do it was offer us something to go away! Rate is 1.15% over ECB
 
Monbretia said:
Interesting! I wasn't aware of how Danske handled it, funny enough I had thought myself the likely way to do it was offer us something to go away! Rate is 1.15% over ECB
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Danske were able to do that because they kept a banking licence here for business / corporate banking. It's interesting that they waited 6 years before making an offer.
In practice it's going to take UB years to wind down, so it might be similar.

*If they decide to exit.
 
RedOnion said:
Danske didn't sell the offset mortgage book initially, and then at end of 2019 to hurry things up they offered a 30% discount to some customers to clear their offset mortgage. The discount reflected both the offset and the low teacher margin (as low as 0.5% in some cases).

For a sense of timescale - this offer was 6 years after Danske announced they were exiting!
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Not true of the whole book. I had an offset mortgage and it was transferred to Pepper long before 2019. The "compensation" for losing the offset was a reduction on the standard variable rate (roughly 30%). But there was no reduction in the principal
 
EmmDee said:
Not true of the whole book.
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There an exception to every rule! ;)

Yes, maybe it was the tracker ones that they had held onto, as both the margin and offset were contractual. I don't have the exact details, but I have seen specific cases that were offered the discount in 2019.
 
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