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Natwest considering closing Ulster Bank in the ROI

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Comments

  • #2


    Possibly think they can flog it to somebody. Be mad to just wind it down.


  • #2


    Only opened a savings account online that took so much back and forth.

    What happens peoples cash if they do fold?


  • #2


    daheff wrote: »
    Possibly think they can flog it to somebody. Be mad to just wind it down.

    Depends how quickly they want to get out, also who wants the baggage of a branch network with the costs in place that with unions, can be hard to manage down.

    They could sell the loan book aka BOSI when they left. Not sure what levels of deposits they have.


  • #2


    PCros wrote: »
    Only opened a savings account online that took so much back and forth.

    What happens peoples cash if they do fold?

    They're not folding as such and in any event your deposits are guaranteed by the state up to 100k

    When Rabo left they gave plenty of notice and people had to close their accounts and take the balance.

    They might sell the business as a whole or in bits.


  • #2


    They're not folding as such and in any event your deposits are guaranteed by the state up to 100k

    When Rabo left they gave plenty of notice and people had to close their accounts and take the balance.

    They might sell the business as a whole or in bits.

    Ah yes totally forgot about the 100k guarantee.


  • #2


    They're not folding as such and in any event your deposits are guaranteed by the state up to 100k

    When Rabo left they gave plenty of notice and people had to close their accounts and take the balance.

    They might sell the business as a whole or in bits.

    Don't think there would be a buyer in the market... Other Irish banks would know that customers will migrate to them if it is wound down so why pay.

    The big question is whether the other Irish banks are capitalised enough to be able to undertake any new lending for Ulster bank customers without having an impacting on Stress tests.

    The only Assets that I could see being sold is the existing mortgage book but that would be a Asset sale as opposed to a part of the business being sold on.


  • #2


    Any idea what, if anything, that means for existing mortgages? 4.75 or so years to go on a 5 year fixed...


  • #2


    There should be no impact as the terms of your mortgage have already been agreed regardless of who owns it.

    It will only impact you when you come to roll it as you will need do so with a different bank.


  • #2


    daheff wrote: »
    Possibly think they can flog it to somebody. Be mad to just wind it down.

    It would be mad for anyone to consider buying it! Buying more capacity in a commodity market where there already is over capacity would be crazy.

    Of course we’re talking about geniuses who constructed a financial product where the funding and the lending weren’t matched.... so anything is possible.


  • #2


    There should be no impact as the terms of your mortgage have already been agreed regardless of who owns it.

    It will only impact you when you come to roll it as you will need do so with a different bank.

    What do you mean by "roll it"?
    I have a tracker with UB and from what you're saying the terms of my mortgage should stay the same so that's good news.

    Just not clear on the "roll it" part.

    Thanks


  • #2


    There should be no impact as the terms of your mortgage have already been agreed regardless of who owns it.

    It will only impact you when you come to roll it as you will need do so with a different bank.

    Nope, the mortgage contract is with Ulster bank and will always be with ulster bank. They may securitise it or even sell the mortgage book to someone else or have someone like pepper manage it, but will make little difference to anyone with a mortgage or loan.

    If you have a current account or savings, you will be affected and have to move to another bank.

    Ulster is part of the massive Natwest group who are the largest bank in the UK, so there's zero risk to deposits. They are just realising that they will never make a decent profit here, so are set to make a good business decision and pull out.


  • #2


    frash wrote: »
    What do you mean by "roll it"?
    I have a tracker with UB and from what you're saying the terms of my mortgage should stay the same so that's good news.

    Just not clear on the "roll it" part.

    Thanks

    When it comes out of the fixed rate period.

    If on a tracker they cant touch that so if they leave your loan will be sold on - the tracker has to stay with whoever buys the loan book.


  • #2


    frash wrote: »
    What do you mean by "roll it"?
    I have a tracker with UB and from what you're saying the terms of my mortgage should stay the same so that's good news.

    Just not clear on the "roll it" part.

    Thanks

    Never heard it myself but roll it in this case means going from a fixed interest rate to a variable rate or to another fixed rate at end of agreed fixed rate term.

    You dont need to roll trackers.


  • #2


    I would imagine it's certain that Ulster Bank will withdraw from the Republic of Ireland. Even the speculation about it will be harmful and will cause business to start diverting to other banks. For several years now I have been of the view that Ulster Bank does not want customers. The level of service has dropped to a very low point and the only reason I haven't closed my accounts and moved from Ulster Bank long ago is due to the lack of a decent alternative.


  • #2


    I'm in the process of switching mortgage from BOI to Ulster Bank. I chose Ulster Bank because they have a low fixed rate and allow you to offer pay each month by large amounts even on a fixed contract.

    Should I be reconsidering switching to Ulster Bank?


  • #2


    I'm in the process of switching mortgage from BOI to Ulster Bank. I chose Ulster Bank because they have a low fixed rate and allow you to offer pay each month by large amounts even on a fixed contract.

    Should I be reconsidering switching to Ulster Bank?

    If the rate and T&Cs suit you then go with it, if it's a fixed rate nothing charges during the fixed rate period if they do decide to leave. You'll just become a customer of whoever buys their loan book or who takes over their business.


  • #2


    They're not folding as such and in any event your deposits are guaranteed by the state up to 100k

    When Rabo left they gave plenty of notice and people had to close their accounts and take the balance.

    They might sell the business as a whole or in bits.

    What a pain. When Rabo pulled out I moved my savings to Ulster bank.

    So much hassle now to set up a new account.


  • #2


    I'm in the process of switching mortgage from BOI to Ulster Bank. I chose Ulster Bank because they have a low fixed rate and allow you to offer pay each month by large amounts even on a fixed contract.

    Should I be reconsidering switching to Ulster Bank?

    I would forget about. Your fixed rate will remain the same but it is almost inevitable your loan will be sold at some stage. Once it comes into a variable rate you will be at the mercy of elaborate the owner of the loan decides to charge. You will then have to go about trying to switch at that stage. You would be better off to find a decent lender and move there and save the double hop.


  • #2


    I would forget about. Your fixed rate will remain the same but it is almost inevitable your loan will be sold at some stage. Once it comes into a variable rate you will be at the mercy of elaborate the owner of the loan decides to charge. You will then have to go about trying to switch at that stage. You would be better off to find a decent lender and move there and save the double hop.

    They have 3 options

    1. Continue to manage the loan book. (most likely as they do this mostly from Northern Ireland)
    2. Have a 3rd party service the loan book
    3. Sell the loan book. (least likely)

    If #3 is chosen, as mortgages are profitable and its relatively easy to switch, any new owner would not hike interest rates above the general market.

    But if I had not taken out a mortgage yet, I'd look at the others in the market now (esp avant) just to avoid any hassle.


  • #2


    I would forget about. Your fixed rate will remain the same but it is almost inevitable your loan will be sold at some stage. Once it comes into a variable rate you will be at the mercy of elaborate the owner of the loan decides to charge. You will then have to go about trying to switch at that stage. You would be better off to find a decent lender and move there and save the double hop.

    Depends on how much going to another lender now would cost over lost savings with UB, bearing in mind they havnt even said what they are doing yet.

    Switching lenders should be done more than it is if not on a fixed rate regardless of if the lender is BOi, AIB or Pepper. It is not a lot of pain for potentially a lot of gain.


  • #2


    I have an old first active tracker current account, now with Ulster bank, was called offset flexible mortgage , all tied in together, I am sure they have it in small print somewhere that they can pull the plug on it.


  • #2


    kerryjack wrote: »
    I have an old first active tracker current account, now with Ulster bank, was called offset flexible mortgage , all tied in together, I am sure they have it in small print somewhere that they can pull the plug on it.

    The tracker part is safe. But you would need to check t&cs to see if the current accounts that are linked would be affected.

    But there's no announcement yet, so I wouldn't fret and the closure will take several years.


  • #2


    silver2020 wrote: »
    They have 3 options

    1. Continue to manage the loan book. (most likely as they do this mostly from Northern Ireland)
    2. Have a 3rd party service the loan book
    3. Sell the loan book. (least likely)

    If #3 is chosen, as mortgages are profitable and its relatively easy to switch, any new owner would not hike interest rates above the general market.

    But if I had not taken out a mortgage yet, I'd look at the others in the market now (esp avant) just to avoid any hassle.

    I disagree as if they run down the loan book they will need to hold capital and without the customer deposits being there this would be very costly to the bank. I think the most likely situation would be for it to sell the loan book as quickly as possible if they were to exit the Irish market even if they were to sell it at a large discount.

    Just for clarification this should have no impact on customers with existing mortgages but if you did have a mortgage that had a rate for a set period of time (Fixed rate etc) and you planned on refinancing this at the end of that set period you would need to look elsewhere.


  • #2


    silver2020 wrote: »
    the writing is on the wall

    But there's no announcement yet, so I wouldn't fret and the closure will take several years.

    The writing is on the wall. The chief executive wouldn't be making comments like that if there was any intention to keep the bank going in the Republic of Ireland. The only safe assumption is that the bank is going to close.


  • #2


    AIB variable rate is 2.95%, does anyone know if the overpayment process is painless enough to do it monthly?


  • #2


    recently completed a mortgage switch to UB and also opened a current account as they are offering €500 for anyone opening a current account who switched their mortgage to UB as well.

    so i am waiting for a €1500 as legal expenses cash back and €500 from the newly opened current. not sure i am ever going to get that.


  • #2


    jusvi2001 wrote: »
    recently completed a mortgage switch to UB and also opened a current account as they are offering €500 for anyone opening a current account who switched their mortgage to UB as well.

    so i am waiting for a €1500 as legal expenses cash back and €500 from the newly opened current. not sure i am ever going to get that.

    Its business as usual right now...


  • #2


    There has been rumours about this for years. I doubt it will happen. Even if it did, it won't happen overnight. According to the report, it would take place over 6 years.


  • #2



    Just for clarification this should have no impact on customers with existing mortgages but if you did have a mortgage that had a rate for a set period of time (Fixed rate etc) and you planned on refinancing this at the end of that set period you would need to look elsewhere.

    I've never heard of people "refinancing" after the end of a fixed rate. You'd go onto either the standard variable rate or choose a new fixed rate.

    If there's better value in the market than you'd be looking at switching.


  • #2


    silver2020 wrote: »
    I've never heard of people "refinancing" after the end of a fixed rate. You'd go onto either the standard variable rate or choose a new fixed rate.

    If there's better value in the market than you'd be looking at switching.

    Some people say refinancing instead of swifching, its essentially the same thing.

    Consumers here are traditionally lazy and don't shop around (same with utility bills). There's no reason whatsoever why you have to stay with your existkng lender at the end of a fixed rate period.

    Even after legals fees it can be worth it (often the bank will give you cash back or cover legals to get switching business).

    Back on topic, Irish Times are speculating whether PTSB would take over all or part of the UB business. It is still majority state owned and the government won't want to see a lender leave the market.


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