CCPC to carry out Phase 2 investigation into ptsb's proposed acquisition of Ulster Bank mortgages

[Brendan Burgess]

CCPC to carry out a Phase 2 investigation of Permanent TSB’s proposed acquisition of certain assets of Ulster Bank​

MAY 10, 2022

The Competition and Consumer Protection Commission (CCPC) has decided to carry out a full Phase 2 investigation into the proposed acquisition by Permanent TSB plc of certain assets of Ulster Bank Ireland DAC.

Following an extended Phase 1 investigation, the CCPC has determined that a full investigation is required in order to establish if the proposed transaction could lead to a substantial lessening of competition in the State.

The CCPC will publish its Phase 1 determination no later than 60 working days after the date of the determination and after allowing the parties the opportunity to request that confidential information be removed from the published version.

Any parties who would like to send in submissions are invited to do so, via email to [email protected], by Monday 30 May 2022.

Information about the merger notification can be found at M/21/076 – PTSB/Certain Assets of Ulster Bank.

 

[TRS30]

Brendan- Is this an opportunity to query UB mortgage holder being classified as existing PTSB customers in relation to mortgage rate availability?

 

[Brendan Burgess]

Yes, I made a submission on Phase 1 which is attached.

But here is the relevant bit:

Ulster Bank customers will become “existing” customers of permanent tsb

When UB customers were shopping around for their mortgage, they could have chosen a lender which provided cashback up front in exchange for higher mortgage rates throughout the term. But they made a conscious decision to forego cashback and opt instead for longer term value.

But if their mortgages are sold to ptsb, they will get the worst of both worlds. They didn’t get cashback but they will be stuck with very high mortgage rates.

From Table 4, it can be seen that a ptsb customer with a <80% LTV who fixes for two years, will pay €2,550 more in the first year than a similar Ulster Bank customer. If the rate differential remains the same over 20 years, the ptsb customer will pay €30,013 more over the full term of the mortgage. Of course, if the takeover goes ahead, the UB customer will become the ptsb customer.

Table 4: Comparison of permanent tsb and Ulster Bank mortgage lending rates for existing customers

 

[Brendan Burgess]

Any additional points to make on this proposal.

Since making my initial submission I note the following additional examples of their discrimination against existing customers

• The 0.2% cashback on monthly repayments does not apply to existing customers.
• They cut their 4 year fixed rates for new customers only.

Brendan

 

[TRS30]

Sorry Brendan missing this. Thanks for coming back to clarify you had raised this. Hopefully they will take these very valid points into consideration. Moving to PTSB and being classified as new or existing will have a big impact.