If AIB buys my UB mortgage, can I (easily) switch to another AIB rate?

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Paul F

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I have a fixed-rate mortgage with Ulster Bank. Let's assume AIB buys UB's performing mortgage book (which includes mine).

Am I then effectively an AIB customer? I.e., am I eligible to switch to any of AIB's other mortgage rates without having to go though the full, long, slow mortgage switch process involving a solicitor?

I know I might have to pay a break fee and a valuation fee but that is not a concern.

On a related note, do you think that UB will give any warning that they are about to stop offering new mortgages, or allowing internal mortgage switches? Or will we just wake up one day and find out that their mortgage offers are no longer available?

Thanks
 
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On your first question - firstly it's PTSB who are in the running for the mortgage book. AIB are looking at the corporate book. Though nothing is for certain yet.

As to your flexibility to change products it really depends on the structure of any purchase. If AIB/PTSB purchase the loan book and place it in their existing bank then it's likely you will be a fully fledged customer. If they establish a new subsidy then it would be treated like a separate bank and you would have the same set of obstacles as you would trying to switch to another provider.

If I had to guess I'd say they will just drop it into the existing business. Though nothing is for certain yet. Even if they do this, in the case of PTSB, not all rates are available to existing customers.


As for the second part I would expect there to be a point when they stop excepting new business. Valuing loan books is tough work without making it a moving target by constantly drip feeding new loans. Logistically there would need to be a point between the end of due diligence and the actual sale.

The treatment of existing business is less clear cut. You're entitled to break out of your fixed rate mortgage at any time. Of course they don't have to offer a fixed rate mortgage so they might simply withdraw those products for a period of time before the sale is complete.

Telling people in advance might just mean more work for them....
 
Hi Paul

It's a really interesting question.

However, the two cheapest lenders in the market for existing customers are being bought out by the two most expensive lenders in the market for existing customers.

So if ptsb buys your Ulster Bank mortgage, you will probably end up paying ptsb rates so you will have to switch if there are any lenders left.

If BoI buys KBC, the KBC customers will face the same issue.

Brendan
 
Thanks for the replies, guys.

@Brendan Burgess Based on your posts here and in other threads, it seems like you think that PTSB (as opposed to another lender) will buy UB's retail mortgage book. I'm curious as to what makes you think that they are the most likely purchaser?
 
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