Implications for mortgage holders of rumoured Ulster Bank pull out

If UB announce they are pulling out, any ideas how long the sale deal would take? Would we know within a couple of months do you think?

The reason I ask is that if our loan gets sold to a Vulture fund we'll be throwing everything at it (money that would have been going into pension) to get our balance down. If we can't switch I want less debt at a high SVR. If one of the high street banks buys the loan...I'll be happier to stick with my current plan of small overpayment on mortgage plus pension.
 
Might there be some small silver lining for mortgage holders - could they forgo break fees in the hopes of expediting the wind down?


If UB announce they are pulling out, any ideas how long the sale deal would take? Would we know within a couple of months do you think?

The reason I ask is that if our loan gets sold to a Vulture fund we'll be throwing everything at it (money that would have been going into pension) to get our balance down. If we can't switch I want less debt at a high SVR. If one of the high street banks buys the loan...I'll be happier to stick with my current plan of small overpayment on mortgage plus pension.

It's all rumour and conjecture at this stage but a performing loan book like UB's would be highly sought after. Especially from existing banks.

Any reason why you wouldn't be able to switch as is?

Are you currently fixed?
 
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If UB announce they are pulling out, any ideas how long the sale deal would take? Would we know within a couple of months do you think?

The reason I ask is that if our loan gets sold to a Vulture fund we'll be throwing everything at it (money that would have been going into pension) to get our balance down. If we can't switch I want less debt at a high SVR. If one of the high street banks buys the loan...I'll be happier to stick with my current plan of small overpayment on mortgage plus pension.

Is your loan non-performing as things stand?

i.e. why wouldn’t you be able to switch it?
 
Why anyone is considering not taking a good fixed rate, for a medium to long term period, is beyond me.

Contractual terms are legally binding and must be honoured, even if a mortgage is sold to a fund.

My own homeloan was performing, but was sold as part of Danske Bank leaving Ireland, years ago. Its now held by a non - bank lender, but the terms and conditions remain the exact same, as when I was with Danske. The only issue, is that I can't get a top up loan, if ever I might want one. If ever I do want a further loan, I'll just refinance to another lender, at that time.

Ulster Bank are said to be fairly conservative lenders these days, while a lot of their historic higher risk loans, or tracker rate homeloans, will have reduced with time. As such, they'll be in high demand, if offered for sale, and will most likely be sold to another licenced bank - a bank looking for new, long term customers, who might also top up their loans, or buy other products.

Again, this is all based on a hypothetical situation, as things stand.

Even if NatWest announce a wind down of UB, on 19th February, its going to take 5-7 years, to wind Ulster Bank down. There's no need for anyone to be panicing, there'll be plenty of time for people to explore their options, move banks etc.

The one thing that I would say, is that anyone who is currently in financial difficulty, and struggling with their debt, (or anyone who thinks they may be about to fall into difficulty), should go and speak to the Bank immediately. The sooner the engagement begins, the better.
 
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If UB announce they are pulling out, any ideas how long the sale deal would take? Would we know within a couple of months do you think?

When Danske announced a pull-out in October 2013 it said it would be complete by the middle of 2014.

I had a colleague at the time who had to close her Danske current account and open another one. It was straightforward (but pretty time consuming) for her to prove identity with new bank, then switch payroll and direct debits.
 
Is your loan non-performing as things stand?

i.e. why wouldn’t you be able to switch it?


Not in arrears and hope never to be. Due to Covid, childcare needs I have taken a leave of absence from work so we wouldnt be able to switch. God only know what our situation will be in 2 years when our current term ends. I'm considering if breaking out of 5 year fixed ( 2.5% with 2 years remaining ) and refixing for 10yrs (@2.8% ) with UB is a daft or good idea.
 
Nicetoknow, I am thinking the same, although we would not have any break fee as our current mortgage term is set to expire end of March.

The only risk I can think of, is if rates drop during the ten years.

I'm finding it hard to submit the choice we've made though. I will give it another week and see where things are then.
 
My understanding is that banks like Ulster Bank created certain products to help manage their LTV/LTI exemptions.

For example, their >€500k <80% LTV 2.5% Fixed product.

Those individual silos of mortgages may be of interest to providers in order to do the same or to achieve something specific.

e.g. “I’ll take all of that silo please”
 
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I have my mortgage with Ulster Bank. 2 yr fixed at 2.3% with fixed period due to end December 2021. Current balance is €230K. House value circa €700K with 17 years remaining on the mortgage. Age 40.

I had originally planned on fixing the mortgage this coming December for 5 years at 2.35% with Ulster. Is it likely this will be an option for me or is it likely my mortgage will be sold on to another bank at that stage? Would there be any value in breaking out of my fixed rate now and re-fixing for the 5 year term? I was hoping that at the end of the 5 years fixed I will be able to clear the mortgage balance through the sale of an investment property.

Curve Ball…..I have heard mention of a house coming up for sale in my area in the next few months. This house is very attractive to me and would be a trade up. How can I best position myself to maintain a low mortgage rate while also keeping myself open and ready to trade up if the right property becomes available in the next few months/years?

Advice appreciated.
 
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1) Ask Ulster Bank what the break fee is. It might not be very much.

2) You might be better off fixing for a shorter period in case that house becomes available.

3) If you really want that house, why don't you sell your investment property now?
 
Personal speculation but for Ulster to sell your mortgage by December would be very quick. So I fully expect by the time you roll off your fixed rate your mortgage will still be part of the NatWest group.

As Brendan says why not look for a break free estimate now.

An alternative option would be to switch to the likes of KBC (or other bank offering cashback). If you're going to clear the mortgage in 5 years I imagine the cashback would out way any higher interest charge you might face.

Switching would also deal with any uncertainty surrounding Ulster's actual closure.
 
I’m fixed with UB at 2.5% until Q4 2022. The LTV is low and the LTI is fine. Any suggestions for what I should do? There is a material break-fee. Avant have the best rate but as I understand it they don’t allow overpayments. In an ideal world, I’d like a decent rate, the ability to overpay monthly, and the ability to make lump sum repayments. My own thoughts are to wait and see what happens and take action then if it’s something I don’t like. Many thanks.
 
My own thoughts are to wait and see what happens and take action then if it’s something I don’t like.
This would be my thoughts on it at the moment. It will be months until there is any clarity on what might happen to your mortgage. But I'm a bystander, I don't have a mortgage with UB.

In terms of overpaying, a number of lenders will allow you to shorten the term without incurring a break fee. But it's a contractual change to the term.
 
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This would be my thoughts on it at the moment. It will be months until there is any clarity on what might happen to your mortgage. But I'm a bystander, I don't have a mortgage with UB.

In terms of overpaying, a number of lenders will allow you to shorten the term without incurring a break fee. But it's a contractual change to the term.

Yes, the problem with that is you’re committing to it.
 
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