Thanks for taking the time time to a) read my message and b) respond to it
Some great info there, very much appreciated
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Thanks for taking the time time to a) read my message and b) respond to itToo many questions! Head won't work that fast
For starters lodging more than or equal to the balance of a mortgage directly to the mortgage is more than likely going to trigger a redemption of it unlike when you had it in the facility account linked to the mortgage. Now I suppose they might be able or maybe already have done something IT wise to avoid that.
Yes you would still make repayments as normal however obviously the loan would clear quicker as there is little (assuming you had to keep lump sum below mortgage balance to avoid triggering redemption) or no interest.
As for separating them you don't as such but if you were looking at the bank computer screen showing your account it would show mortgage balance and then a credit amount separately which is your lump sum, however I imagine statements etc would show net balance, again unless they change that.
Taking money out is probably similar to drawing down available facility now as in you write a letter in requesting it, lodgments I imagine would have to be bank transfer, not like you can walk in and lodge!
Regarding second part of your queries, I pay no interest and have not done for years as I have more in linked accounts than is owing on mortgage, I still pay the required monthly repayments which basically just come out of the savings and into the mortgage so it's same total overall balance just different breakdown. Of course I could just pay it off but as you say the available facility is handy if I wanted to buy a car for example, although mind you it wouldn't purchase much for me as the AF goes down over the years and what's left on mine wouldn't buy much but for others the amount could be substantial.
The Home Movers bit doesn't apply to me or to any of my friends/relations who have an offset, I would imagine the numbers for whom this might be an issue could be small, they may be retaining it in some small way anyway, it would be easily done and wouldn't need any fancy IT, it would simply mean opening a new mortgage at same rate for same amount and as it would be a standard annuity mortgage from bank point of view should be fairly simple to implement if they need to keep it.
Basically for me it's a great deal, I didn't get letter yet but know the most I will get will be the minimum amount which is still a lot better than nothing! I made great use of that mortgage over the years and am lucky that it is very small now and I could have cleared it years ago but held on to it just in case, luckily!
I'd like to get the tax situation confirmed. Why are Ulster bank in the FAO saying that 1)you should get independent tax advice 2) that they will not pay any tax or liabilities that may arise.Just got the letter. Think it's good news but haven't read the small print. But good to read that there shouldn't be tax implications, I'd be inclined to put it into the mortgage
As far as I know, compensation payments aren't subject to tax. I imagine this is classed as compensation?What are the tax implications here? Is the reason they doubling the payment, because we will have to pay half of it in tax?
They're prob covering themselves with the independent tax advice issue, perhaps tax is an issue for some specific situations like tax residency (have no idea, just an example). The letter includes an annex looking for ID and evidence of residenceI'd like to get the tax situation confirmed. Why are Ulster bank in the FAO saying that 1)you should get independent tax advice 2) that they will not pay any tax or liabilities that may arise.
They're v careful with the wording ex-gratia goodwill paymentAs far as I know, compensation payments aren't subject to tax. I imagine this is classed as compensation?
If they use the word "compensate" or "compensation" then they are leaving themselves wide open to challenge. It would be an admission that they know they are on shaky ground with this (which I think they are). Over on boards.ie some folks are saying they have gotten offers of 26K and 76K for example. Banks just don't give out those sums of money "by favour", it's compensation for loss of offsetting benefit, however they want to spin it. I think the whole thing stinks a bit, but they'll probably get away with it because a lot of people will be happy with the offer.They're v careful with the wording ex-gratia goodwill payment
The letter includes an annex looking for ID and evidence of residence
Everyone has a choice they cannot just say there you go its that way or the high way and with the recent fines they had to pay due to the tracker mortgage scandal will also be in their mind. I have outlined what Ulster bank has to do to remedy this situation for the mortgage holder if they dont then if a high % of mortgage holders band together for a court case they will have to come back to the negotiating table.what if I say no to the offer? do we actually have a choice?
Yet not one of these mortgages where negotiated with Ulster bank they were done with First Active. Its a contract which they cannot just break and they will be open to all kinds of law suits unless they pony up what I have outlined.Yes, Ulster Bank has the legal right to make these changes, as outlined in the letter we sent to you. In our letter we set out the relevant sections of the “Ulster Bank Offset Banking Terms and Conditions” which allow us to remove your offset facility, close your Current Plus/Facility/Instant Access Plus account(s) and to make consequential changes. These sections are:
Section A Conditions 4(a), 8(d) and 10;
Section B Part 1 Conditions 5.2 and 7;
Section D Conditions 15, 16 and 18.
The full terms and conditions are available to download on our website at www.ulsterbank.ie/brochures.
That's from their FAQ. So they claim to, I'd suggest raising questions with Central Bank/Regulator.
Any solicitor should be able to argue this I wouldn't be cashing any cheques yet maybe use the 250 and consult a solicitor.
The more I look at it the less inclined I am to immediately accept it. I think it's definitely worth looking further intoA lot of peoplle unhappy over in boards.ie. talk of people banding together to get a solicitor in case anyone here is unhappy with their offer
The more I look at it the less inclined I am to immediately accept it. I think it's definitely worth looking further into
I'm not happy with these changes, so I don't want to accept the goodwill payment until you have considered my complaint
Your acceptance of the goodwill payment does not affect your ability to raise a complaint. If you do want to raise a complaint, we will ensure that it is considered in accordance with our normal processes however before you do this it would be good if we could get an understanding of the nature of your complaint as we may be able to help you. However irrespective of the complaint all Current and Deposit accounts will become non operational from 23rd May.
The ex-gratia goodwill payment will be paid on or shortly after 10 January 2024.
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