Natwest considering closing Ulster Bank in the ROI

Islander13

Sad day for the staff especially and an end of an era. Have banked with them for 40 years

okidoki987

Will take a while to wind it all down.
Will also put pressure on deposit rates as UB has €22 billion in deposits and they will need to find a new home.
I'd expect the rest of the banks to start charging negative interest rates soon and they will blame Ulster for it.

jj880

Damn.. wonder how long the staff will get?

Darc19

I reckon that everyday banking will be gone within 6 months but longer for other parts.

Danske may have taken a few years, but the country was in recession and no-one wanted credit card books or personal loan books.

Now there's a queue for the loan books, so in many cases it will simply transfer to another bank.

If I had a guess, KBC for mortgages, Avant for credit cards and ptsb for business accounts.

Personal loans may stay and simply be run down.

Sheep Shagger

The IT headline says they are leaving but then says a decision is still to be made....clickbait?

Note: I know its probably true but as of tonight it is not confirmed.

Darc19

Sheep Shagger wrote: »

The IT headline says they are leaving but then says a decision is still to be made....clickbait?

Note: I know its probably true but as of tonight it is not confirmed.

If it was the indo or that utter sh1te rag, daily mail, I'd probably say it's not to be trusted. However the Irish Times tends to base their stories on real information and most likely there is a personal connection between someone in IT and UB where information has emanated from. Remember, they were very accurate when they broke the initial story.

okidoki987

Darc19 wrote: »

If it was the indo or that utter sh1te rag, daily mail, I'd probably say it's not to be trusted. However the Irish Times tends to base their stories on real information and most likely there is a personal connection between someone in IT and UB where information has emanated from. Remember, they were very accurate when they broke the initial story.

+1.
Irish Times tend to be spot on when it comes to financial breaking news.
I'd say someone in Ulster has given them the heads up so they will have the headlines in tomorrows edition as opposed to the rest who will be reporting it in Fridays editions.

It will a right pain for people who will now have to open new accounts with other banks, moving direct debits, standing orders and so on.
The only saving grace is, it's won't be happening for a long time.

JTMan

I also think the Irish Times report can be trusted.

RTE are reporting here that Natwest and Ulster Bank are refusing to comment on the Irish Times report. (Natwest previously gave a "under review" comment to media questions).

The Irish Independent are reporting here that there is a surge in Ulster Bank mortgage holders looking to switch their mortgage.

Buddy Bubs

One major Irish bank, which did not want to be named, said it is seeing a surge in inquiries from companies asking about moving their business banking to it.

Gotta love the independent, they just made that up as filler.

JTMan

FT are also now confirming here (paywall) that Natwest will pull out of Ireland.

baldbear

I feel so sorry for the staff. As a kid my first bank was with them. I remember that Henry Hippo money box & goodies handed out in school when the staff came to visit.

geotrig

Damn if true ,really hoped they wouldn't close ,now to look at the hassle of getting set another bank wit a decent online/ app:(

sp00k

How long are we talking here? Forgive my total ignorance but I have a fixed rate mortgage with them, which I don't want to end up in the hands of a vulture fund, as well as my current account.

drdidlittle

sp00k wrote: »

How long are we talking here? Forgive my total ignorance but I have a fixed rate mortgage with them, which I don't want to end up in the hands of a vulture fund, as well as my current account.

You'll have same terms until end of term of mortgage no matter who takes it over. After that.... Shop around

silver2020

geotrig wrote: »

Damn if true ,really hoped they wouldn't close ,now to look at the hassle of getting set another bank wit a decent online/ app:(

There is no hassle. You fill out one form, the bank does the rest. Takes a few days and you pick the date. So select a date that there are no direct debits coming out in the 3-4 days after

https://www.switchyourbank.ie/how-to-switch/ (official government website)

Downloaded

We have been approved a mortgage with UB and have paid our 10% deposit to the builder of our new house. The house is still under construction and is now delayed due to the Level 5 restrictions :rolleyes: so we have yet to 'draw down' any funds.

Does this mean that we will now need to reapply to another lender for a new mortgage or would the approved mortgage with UB be already considered on their loan book, despite not drawing down any funds?

silver2020

sp00k wrote: »

How long are we talking here? Forgive my total ignorance but I have a fixed rate mortgage with them, which I don't want to end up in the hands of a vulture fund, as well as my current account.

It won't be a vulture fund. (I wish people would stop believing SF rhetoric) Your terms have not and will not change one iota.

If your fixed rate is until 2025, it stays EXACTLY as it is until 2025 and then reverts to the rate as per the terms and conditions you have agreed to and if that rate is not competitive, you switch. Terms and conditions will not change.

The didn't change for Danske bank customers, they didn't change to Bank of Scotland customers, they didn't change for Irish nationwide customers and they didn't change for First Active customers. Only if you do not pay your mortgage do you have to fear anything - and that would be the same whether Ulster stayed or went.

You will hear an awful lot of manure from SF and the looney lefty brigade because they want cheap publicity and if that means scaremongering people, so be it - ignore it.

silver2020

Downloaded wrote: »

We have been approved a mortgage with UB and have paid our 10% deposit to the builder of our new house. The house is still under construction and is now delayed due to the Level 5 restrictions :rolleyes: so we have yet to 'draw down' any funds.

Does this mean that we will now need to reapply to another lender for a new mortgage or would the approved mortgage with UB be already considered on their loan book, despite not drawing down any funds?

No use guessing at this. Best to wait until the announcement and the details which will have such info.

Atlantic Dawn

Discussion on it now on Claire Byrne radio show.

Banana Republic 1

Anything that allows the "pillar banks" to gain more control is a big fat lose for the public

zom

silver2020 wrote: »

It won't be a vulture fund.

Why not? It actually seems to be most likely vulture fund, but surely on same T&C as signed with UB.

the_amazing_raisin

zom wrote: »

Why not? It actually seems to be most likely vulture fund, but surely on same T&C as signed with UB.

Why would it be a vulture fund?


Vulture finds work by buying up bad debt at a heavy discount and then working to make it profitable (often by trying to repossess the houses and sell them). Basically the bank wants to get rid of people who can't/won't pay their mortgage and sells off the debt for less than it's worth to improve their stats


In the case of UB, their loan book is doing well, full of people making monthly payments. It represents a profitable loan portfolio to anyone who would buy it, so will not be discounted


Vulture funds won't be interested as there's no profit in it for them



I wouldn't be overly surprised if NatWest tries to keep the existing loan book even if they shut down the rest of UB as it represents an easy money maker. They won't take any new mortgage customers, just let the existing ones run to the end of term or switch to another bank

OwlsZat

Downloaded wrote: »

We have been approved a mortgage with UB and have paid our 10% deposit to the builder of our new house. The house is still under construction and is now delayed due to the Level 5 restrictions :rolleyes: so we have yet to 'draw down' any funds.

Does this mean that we will now need to reapply to another lender for a new mortgage or would the approved mortgage with UB be already considered on their loan book, despite not drawing down any funds?

We're in the same situation. :pac:

Akesh

cruisey1987 wrote: »

Why would it be a vulture fund?


Vulture finds work by buying up bad debt at a heavy discount and then working to make it profitable (often by trying to repossess the houses and sell them). Basically the bank wants to get rid of people who can't/won't pay their mortgage and sells off the debt for less than it's worth to improve their stats


In the case of UB, their loan book is doing well, full of people making monthly payments. It represents a profitable loan portfolio to anyone who would buy it, so will not be discounted


Vulture funds won't be interested as there's no profit in it for them



I wouldn't be overly surprised if NatWest tries to keep the existing loan book even if they shut down the rest of UB as it represents an easy money maker. They won't take any new mortgage customers, just let the existing ones run to the end of term or switch to another bank

They won't as the whole point of this is that they want to return capital to their investors. A large portion of NatWest's surplus capital is with Ulster Bank.

Maybe it's time to look at the regulation of the banking sector here and repossessions as it's very difficult to see any competition in the sector. At the end of the day the Regulators job is protect banking customers and that is clearly failing. If banks are expected to meet strict conditions to trade in RoI then consumers should be held to strict conditions to pay instead of waiting 5 years+ to evict. As usual, insane levels of altruism, despite being well intentioned, is no way to actively regulate a sector.

The exit of Ulster Bank is a disaster for Ireland.

Hellrazer

So is a tracker safe?
Im with them 13 years and have ECB +0.7%

Theres no way Im loosing that.

jj880

Hellrazer wrote: »

So is a tracker safe?
Im with them 13 years and have ECB +.07%

Theres no way Im loosing that.

Im at ECB + 1%

Surely you mean 0.7% ?

Hellrazer

jj880 wrote: »

Im at ECB + 1%

Surely you mean 0.7% ?

Sorry typo - its 0.7%

zom

cruisey1987 wrote: »

I wouldn't be overly surprised if NatWest tries to keep the existing loan book even if they shut down the rest of UB as it represents an easy money maker. They won't take any new mortgage customers, just let the existing ones run to the end of term or switch to another bank

Wasn't it in October that analytics reported Cerberus being interested in €20.5bn loan book from UB?

py

Hellrazer wrote: »

So is a tracker safe?
Im with them 13 years and have ECB +0.7%

Theres no way Im loosing that.

I'd a call with someone with Ulster Bank yesterday and they confirmed what was said to me earlier in this thread, whatever rate your contract states is what will continue to be charged if UB loan book is sold off. Same goes for fixed rate break terms, transfer to variable rates etc.

jj880

Hellrazer wrote: »

Sorry typo - its 0.7%

Damn thats a great rate.

Mine was offered at the end of a 2 year fixed rate so cant complain really.