In your example if the person had 200k outstanding and 120K on deposit offsetting the outstanding balance, that situation might change, they might want to increase the balance in their deposit account and offset more of the mortgage. If you do away with the offsetting capability you lose the ability to do things like this.I don't understand
If you have a mortgage of €200k with a savings balance of €120k which you can access any time, it is the same to you as a mortgage of € €80k which you can increase to €200k at any time?
Other than some psychological assurance that you have €120k cash in a savings account, it makes no difference.
I presume it's easier for AIB to give you an interest only mortgage of €80k and a credit line of €120k than to set up a system whereby you have two accounts which offset.
Brendan
In your example if the person had 200k outstanding and 120K on deposit offsetting the outstanding balance, that situation might change, they might want to increase the balance in their deposit account and offset more of the mortgage. If you do away with the offsetting capability you lose the ability to do things like this.
I'd say under "normal" circumstances that you could close/open offsetting accounts as it suited you. I last opened up some offsetting savings accounts a couple of years back without any issues.Do the terms and conditions of the loan say anything about what happens if you close the "offsetting" account?
I have the original T&Cs booklets, I'll have a read through later when I'm home to see what it says.Do the terms and conditions of the loan say anything about what happens if you close the "offsetting" account?
That seems pretty clear to me.As these accounts are linked to your Offset Mortgage, closure of these accounts would result in the loss of the Offset benefit. If the Offset Mortgage continues to meet your needs, you should ensure that any current and/or savings accounts linked to it remain open for now.
That's the sort of question no one in Head Office is going to answer or be able to make a decision on and if they intend to do it no one will know until last minute and papers will probably have the news before staff!Has anybody with the offset tracker mortgage approached ulsterbank about trying to get a discount on paying off the mortgage. We have approached about the idea but didn’t get a positive response.
I presume at this stage as stated earlier in the thread that Ulsterbank may have to leave a presence here to deal with the remaining offset account on there books. In this case will external companies still accept direct debits from Ulster bank as our current and savings account are offset against the mortgage, currently getting notifications from companies looking to see when we are switching our direct debits from Ulsterbank.
Thanks for the replyThat's the sort of question no one in Head Office is going to answer or be able to make a decision on and if they intend to do it no one will know until last minute and papers will probably have the news before staff!
As regards the dd's etc I have switched those to another bank while still maintaining the current account and a savings account offset against the mortgage, only the actual mortgage repayment comes out of it now so you could do that but of course it's a nuisance!
If they have to retain a presence here to run these mortgages and current accounts bearing in mind they would then need to provide the full banking service on the current account part such as dds/debit card/standing orders etc which I imagine is a lot more than some of the other banks who left had to deal with and is more than just being a service to answer queries on existing mortgages then I would be looking to switch my direct debits back to my current account with them. I can't imagine that happening though, that's basically running a mini bank for the offset customers only.
Don't knowDo you know what the official date now for Ulsterbank exiting the Irish market, I thought it was March 2023
That seems pretty clear to me.
Close the "offsetting" account and you lose the offsetting option.
It's still an offset mortgage so doubt they could try that one, as you already have the savings account that's great if they would link that one instead of the current account, doesn't give you the functions of a current account but at least you can benefit from offsetting any money you can afford to put in the savings account.Thanks very much for your reply guys on the offset current account closure. They did call me back which I missed but will keep trying. As an aside I do have a savings account ( very little in it) with them which isnt linked to the offset mortgage. If they refuse to reopen my current account I'm going to ask them to link the savings to the mortgage instead.
In any event I'm going to play the confusion card and say with all the furore over their move that I thought closing the account was the thing to do and was advised by their branch staff.
I'm just wary that they could come back and now say that it's not technically an offset mortgage anymore as ive no offset facility in place.
I will certainly relay the outcome here,
Thanks again
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