No. They're a legal and operational nightmare, and UB are trying to work out how much they'll have to pay someone to take them off their hands so they can hand back their banking licence and get their capital out of the country.but could this be why Ulster Bank are being slow to act on these mortgages
You're directing that question at the wrong people I'm afraid! Only Ulster Bank can answer that question for youAny chance Thay would do a deal. I have €70k outstanding at ECB +0.75%
Do you think they would take €50k ?
What would they get out of the deal?Any chance Thay would do a deal. I have €70k outstanding at ECB +0.75%
Do you think they would take €50k ?
What would they get out of the deal?
Because it only takes one customer to not play ball and they're left still needing to hold the licence, capital and meeting all the other regulatory requirements.Closure. If they are genuinely looking to offload them and nobody else wants them, why not do deals on a case by case basis and reduce the number of them.
Do you know how the capital requirements for an offset mortgage work? Or realise a number of these are earning zero interest because there is a full offsetting credit against them? Plus, they can get 4% just putting excess cash on deposit wuth central bank.Could they now be worth the hassle for another bank?
You mean on your Zero? And bank taking it on needs to take both.But if I owe 100k and have 100k offset them I'm not paying any interest. Not getting any other return either. But what is stopping the bank, or new bank from earning the 4% on my 100k?
No.No on the 100K deposit. If banks can deposit over night savers money with ECB can they not do the same with these. Is it not still instant access? Genuine, I don't understand.
Absolutely. Far too late. Danske bank still haven't fully solved it and they're years ahead.It's far too late from them to do a deal with customers
But they would still have my loan.... But yes in that scenario why would a bank invest 100K for for a return they are already getting, without the hassle of managing these mortgages.No.
The deposit is a liability, not an asset. UB didn't sell any deposits. For UB to transfer a deposit to another bank, they need to transfer money to that bank.
So if you have 100k mortgage, fully offset, UB transfer 100k to another bank for the deposit. Then they transfer the loan, and get 100k back. So the net effect is the new bank has got nothing except the potential that the customer will want to get their 100k back out at a timd outsude the banks control, typically at a very low tracker margin.
I'm not sure you've fully got it yet.But they would still have my loan.... But yes in that scenario why would a bank invest 100K for for a return they are already getting, without the hassle of managing these mortgages.
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