While you are undoubtedly right in the vast marjority of cases, this product can be worked by the customer where they can minimize their interest payments (or indeed pay no interest or fees on their mortgage) depending on how well the offsetting capability is being utilised. In my own case for example, I have been fully offsetting the mortgage for a few years and haven't paid a penny in interest or fees to the bank, and have no intention of doing so for the remaining term all going to plan. I don't see how the bank is making anything off this mortgage and I'm sure I'm not the only person doing this. Maybe the OP is doing something similar?It might not be an overly profitable mortgage product, but it's not a loss maker
I agree, I think it's unlikely that they will go down the route of engaging with individual account holders with a view to try and entice them to close their accounts with a discount.What is the benefit to Ulster in offering a discount to customers? Yes, they want out of Ireland and are working down their balance sheet but if even one person refuses to take a discount and close their account they must continue to operate a banking licence here. It's all or nothing. If anything the customer discount would likely end up costing the bank more. They will face the same fixed cost associated with operating a bank here plus the write down on those loans trust accepted a discount.
Of course offering a discount to another bank to take the lot is a different story. That would likely speed up the withdrawal process.
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