UB consumers with own mortgage prot policy have unnecessary obstacles put in the way.


Frequent Poster
Apparently some at Ulster Bank have completely lost the faculty of thought and reason.

Consumers who exercise their right to shop around for their own mortgage protection policy seem to have unnecessary obstacles put in their way.

The most recent hoop people are being asked to jump through is to obtain an 'official letter' on company headed paper stating a recently (by recent I mean in the last few hours) issued mortgage protection policy they have obtained elsewhere hasn't been assigned to any other institution. On receipt of such a letter Ulster Bank will then seek assignment on the policy.

Most Ulster Bank employees recognise the exercise is unnecessary and wasts time but their hands are tied as the instructions come from above.

Has anyone else come accross this or can anyone tell me if there is a logical explanation for such a request because I can't see any?


Frequent Poster
I haven't come across it before, but it smells of sharp practice. Under the consumer protection code, you are entitled to shop around for your life or mortgage protection policy. I have seen banks look for additional assignment forms to be signed in the past, but haven't heard of this. I would remind them of the consumer protection code and threaten to contact the Central Bank if they don't agree to accept the new policy.

Brendan Burgess

Hi Sumatra

I have moved your thread to the right forum.
I have edited the title to make it meaningful.

Can I clarify what the issue is here?

A borrower must take out a mortgage protection policy and assign it to Ulster Bank.
If the borrower goes to Standard Life and assigns it to UB, will UB not allow them draw down the money?

Presumably it's not enough for the borrower to say "I have taken out a policy and I have assigned it to Ulster Bank". Presumably they need that from Standard Life.

If I take out a policy with Standard Life and assign it to a third party, then it is of no security value to UB.

What am I missing here?


Title changed from "Ulster Bank - Is there a logical explanation?" to "UB consumers own mortgage protection policy have unnecessary obstacles put in the way"



Frequent Poster
Was in life as mortgage protection but its fine where it is and title is better. Thanks.

Hi Brendan, if you take out a mortgage having a form of life assurance is normally a requirement. If you do not take UB own offering and go elsewhere then UB require a letter from the new insurer stating the policy has not been assigned to any other institution.

This is wrong because:

(a) It is an unnecessary obstacle in allowing free competition. Agree with jimbob.
(b) The correct procedure is for UB to take the policy offered as collateral and seek assignment. It is at that stage that the insurer confirms assignment and 'notes' the banks interest in the policy. You don't ask before you apply.
(c) Under Data Protection the bank does not have a right to seek such information without the written authority of the policy holders. Until they actually seek assignment UB are a third party and the right does not extend to them.

On UB loan agreement they state:

"(a) that there is/are no other subsisting notice of assignment(s) registered against the policy
(b) that they will notify Ulster Bank Ireland Limited of any assignment prior to them receiving the bank's standard form of Notice of Assignment. This is to ensure the bank will be the sole assignee of this policy"

I seem to recall during the boom years Ulster Bank didn't bother following through on assigning policies and on discovering this fact a year or two ago they gave thousands of customers, insurers and intermediaries a major headache trying to put matters right (and they still haven't)