Implications for mortgage holders of rumoured Ulster Bank pull out

Brendan Burgess

Founder
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42,972
Summary

Tracker customers - The existing tracker is safe. Whoever buys it would have to respect the existing terms and conditions.

Fixed rate customers - it's unlikely that your mortgage will be sold before UB is closed down. So no real implications for you.

Thinking of taking out a mortgage or switching to Ulster - No real implications. The fixed rate deals are still very good value. Whoever buys your mortgage will want to retain the business. If they push up the rates, you will have to switch.

In mortgage arrears - Most of these have already been sold to vulture funds.
 
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Nicetoknow

Registered User
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55
If thix goes ahead, what impact would this have on existing mortgage holders? If you come of a fixed rate in next few years would a new fixed rate then not be available (if they are winding up) - would you have to move lenders?
 

peemac

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850
If thix goes ahead, what impact would this have on existing mortgage holders? If you come of a fixed rate in next few years would a new fixed rate then not be available (if they are winding up) - would you have to move lenders?
The article says that the mortgage book would be sold. Same as Danske.
 

misemoi

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209
I assume they will need to honour their existing contracts? Better get myself teed up for another move!
 

kitty81

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91
Would UB mortgage holders be advised to start switching now if they can? I'm not sure what 'mortgage book being sold' could mean for existing customers?

Can anyone enlightened me!?
 

skrooge

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259
Hard to know what any of this might mean. The important question is who might buy their loan book and what business model might they have.

Selling a performing loan book will attract a different type of purchaser than the distressed sales we've seen in the past. Every chance one of the existing banks would be interested. Or a new entrant looking for a foothold, Avantmoney for example.

Regardless of who purchases the loan book existing customers are still entitled to the protections as laid out by the central banks code of conduct. Not too mention they world be obliged to honour the terms and conditions of any contract.

Regardless of the outcome of the RBS review it's never a bad idea to assess if moving is a good idea. Below are general points that apply in almost every case.

If you've a good tracker you'd be mad to move for this reason alone.

If you've fixed are there are better rates available it may be beneficial but and it depends on what the break cost would be.

After that I wouldn't be rushing to move just because your mortgage is sold. All that might change could be the headed paper.
 
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tracer900

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22
Could this news cause any problems drawing down a current mortgage at loan offer stage?
 

Sybil35

Registered User
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This is really disappointing to hear. Had a great experience switching to them. We are only 6 months into a 2yr fix at 2.3% but planning a sizeable top up in 6 months. Are we best to move again now? We needed to be with ulster 6 months before they consider top ups so guess the other banks have similar policies. Have already been with aib, boi, ebs so may aswell go try out kbc, but would rather stick with ulster.
 

skrooge

Frequent Poster
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259
Could this news cause any problems drawing down a current mortgage at loan offer stage?

Really depends on how far along the process they are relative your drawdown date. As the article says it's a tightly guarded review. There's likely nothing official circulating in Ulster Bank so it's business as usual, for now.

In the short term you should be fine but if your purchase drags on you're more likely to be impacted by any closure, if that is the outcome of the review.

Given the speculation and increasingly having a second loan approval from another bank can't hurt.
 

peemac

Frequent Poster
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850
We've a tracker with them. What happens there?
nothing whatsoever. You might make the payments to a different account if the closure goes ahead. But your tracker is 100% safe.

Everyone else that has a mortgage or loan will see little difference too.

The main cohort affected (if and when this goes ahead) is current account holders and deposit account holders who will need to move to another bank
 

misemoi

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209
I am most interested in the overpayment of a fixed rate, so I will look at KBC again. Wonder if they will give me the 3k for switching again :)
 

MrEarl

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2,030
Anyone wondering about what "might" happen, if UB were to close and sell on their loan book, should read over the discussion threads on Danske homeloans etc.

The key things to remember are :

-there's a legally binding contract, so even if your loan were to be sold, the new counterparty remains bound by the terms of the contract

- CCMA Regulations continue to apply.
 

Virgo80

Registered User
Messages
13
recently completed a mortgage switch to UB and also opened a current account as they are offering €500 for anyone opening a current account who switched their mortgage to UB as well.

so i am waiting for a €1500 as legal expenses cash back offered for the mortgage switch and €500 from the newly opened current. not sure i am ever going to get either of it.
 

peemac

Frequent Poster
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850
recently completed a mortgage switch to UB and also opened a current account as they are offering €500 for anyone opening a current account who switched their mortgage to UB as well.

so i am waiting for a €1500 as legal expenses cash back offered for the mortgage switch and €500 from the newly opened current. not sure i am ever going to get either of it.
Nothing to worry about. Even if they do close the Irish operations there will be months of notice and everything paid in full.

Remember they are part of Natwest - highly profitable 2nd largest bank in the UK
 

Sconeandjam

Registered User
Messages
73
What happens to those with mortgages that are in place? Have a tracker and do not want to loose it.

Also I would say there are many people out there that may not be able to get a remortgage elsewhere due to change in circumstances. Hopefully they will not force people to find new mortgages elsewhere.
 

demoivre

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2,686
What happens to those with mortgages that are in place? Have a tracker and do not want to loose it.

Also I would say there are many people out there that may not be able to get a remortgage elsewhere due to change in circumstances. Hopefully they will not force people to find new mortgages elsewhere.

A mortgage is a legally binding contract that won't change no matter what happens to Ulster Bank.
 

DaveLong20

New Member
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1
We currently have a mortgage loan offer from Ulster and intend to draw down.
Anyone else in a similar position and should we be concerned?
 

Freelance

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62
What happens to those with mortgages that are in place? Have a tracker and do not want to loose it.

Also I would say there are many people out there that may not be able to get a remortgage elsewhere due to change in circumstances. Hopefully they will not force people to find new mortgages elsewhere.

We currently have a mortgage loan offer from Ulster and intend to draw down.
Anyone else in a similar position and should we be concerned?

Dominic Coyle has a piece in today’s IrishTimes that adresses these questions and that should offer you some peace of mind.

Am I crazy to consider switching to an Ulster Bank mortgage?
 
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