What will the departure of the Ulster Bank mean for our tracker mortgage?



In light of the current PTSB deal, what should we do to protect our mortgage tracker with the imminent closure of the Ulster Bank?

Mr JM, email

This is a time of great uncertainty for Irish bank customers. The two main players are leaving the market, and even among those who remain, there are branch closures and other new arrangements.

In recent days, I have had several inquiries related to the departure of both Ulster Bank and KBC and what that means for Irish clients, especially mortgage clients. I’ll try to deal with the ones from the Ulster Bank. I will try to come back to KBC next week.

The bottom line for Irish clients is that they will have fewer banking choices and will lose two of the most innovative and competitive players in mortgages.

But it is important that people know both their rights and the facts.

Last week’s news that Permanent TSB was about to acquire a portion of Ulster Bank’s € 7.6bn loans – in a deal likely to result in UK parent Ulster Bank acquiring a significant stake in the Irish lender, perhaps leading you to believe that your mortgage will be directed towards permanent storage of the TSB (PTSB), but it is not.

Tracker credits

As my colleague Joe Brennan As explained, as part of the deal, PTSB will take on a number of different types of loans, including mortgage loans and small business loans. However, the mortgage ledger that PTSB acquires specifically excludes Ulster Bank tracking loans.

Ulster Tracker Credits look doomed to end up AIB… As Joe said last Friday, AIB is in talks to buy a € 6.5 billion Ulster mortgage loan. The main question is likely to be the price. At zero ECB rates, AIB probably expects to receive a loan portfolio at a discount.

So what does all this mean to you?

Nothing special. Regardless of who buys the mortgage for your tracker, they are obligated to abide by the terms of your loan. This means that as long as you make your payments, AIB (if it eventually buys the loan) will have to abide by the terms of the agreement you originally signed with Ulster.


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