https://www.rte.ie/news/business/2023/1127/1418724-ulster-bank-mortgages-to-lose-offset-facility-next-year/
As all of this stuff will have been gone through several legal reviews before it was made public, it would probably be a very good idea to get legal advice before outright rejecting the offer, so you have some indication of what the alternative might look like.
For instance, if you read the T&C that you originally signed up to, I full expect that they contain provisions for the transfer of your mortgage and provisions for the varying of those T&C. So what would your complaint actually be and even more important is it something within the remit of the Ombudsman.
I read somewhere maybe in the letter that they told the central bank what they were doing which I guess is what you suspected.
Hi All, I am late to the party here but am just wondering if there have been any new developments. I got my letter over a month ago. Ive been asked to upload the documents but haven’t yet. They told me that the documents have nothing to do with receiving the payment but more about identity I suppose and KYC.
Move the 16K now and contact Ulster bank. I have heard they are accommodating people in such situations up to a certain date.... They may rework your compensation. Though no idea what it will be worth or how they will factor it in to any calculation.
Hi
Late to the party. 50k left over 7 years at the moment. Annoyingly, we have savings but in the credit union, 16k there. We used the facility account in early stages of mortgage, but then hit recession etc. Only saving for last few years, and with talk of UB leaving we put the money in CU to save the hassle of moving it.
We have been offered the standard €5250 as we haven't used the facility account, gutted now although don't know how much we have lost as a result. With savings growing, and possible lump sum on the way, we have possibly made a huge mistake.
I contacted central bank and they told me that I can only lodge a complaint with Ulster bank, which I have done, then they have 40 days to reply and if they don't then I can take it to the Financial Ombudsman to bring it further.
I also rang UB and told them I wasn't excepting this money and I wanted my T n C with first active honored.
Why would you expect a definitive answer from any professional if they don't have one? And there will be nothing but (reluctant) opinions until it is adjudicated upon by the courts. And really anyone one gives you a definitive answer, then you should be very careful about using them.
Has anybody had any legal feed back..?
Have engaged with solicitor to get their opinion, but I'm sensing a reluctantance from them to give a definitive answer....
Or maybe I'm paranoid 🤔
Yes I always get my regular offset post so it's very odd. Hopefully in the next few days he new one will arrive. Otherwise I guess I'll find out on Jan 10th 🤣
Over on Askaboutmoney there was a couple of posters whose letters were delayed, they were practically ringing daily but even they have got them at this stage I'm fairly sure. You should definitely have it by now, they weren't that staggered, only over the course of a few days, have they correct address on it, do you always get your other offset post normally?
Out of interest has anyone else here not got their letter yet? I contacted them just before Christmas as I assumed they were sending them in waves, to be told mine was sent out ages ago. They said ,send it again but I've no idea where the first one went!
I have uploaded the document but when I was talking to them in the phone I was told only one person needs to upload their documents even though I my wife is on the mortgage as well, it was easy to do once you have the link sent to you,
MOD: To not upload documents here.
Has anyone uploaded the documents. I tried the phone number, nobody available
The money is yours to do whatever you want with it. You don't have to pay off your mortgage with it.
I have a mortgage and the amount in the letter is €5250 but it will be finished in May and I have €4450 remaining on it so what happens in this situation
There are lots of things that the Revenue don't comment or issue practice guidelines on. In this case we are talking about a very small number of tax payers so I would not expect them to do much about it for the moment.
"Firstly, the nature of the compensation payment itself would need to be determined to establish if it is revenue or capital in nature"
Don't want to read too much into it at this stage but Revenue are calling it compensation.
It would be helpful if we had the tax advise from Revenue before the payment hits the account. That sounds unlikely now given Ulster Bank haven’t been in contact with them and we have the Christmas holidays coming up making only 17 working days for Revenue to receive the information, assign it to someone and get guidance out to us (assuming Revenue don’t work between Christmas and New Years)
Nothing new really but a bit of feed back from revenue
MOD: The last thread on this topic was closed because it turned into speculation on the outcome without much substance. This time please stick to the facts of the matter as people are trying to assess how it well impact them and idle speculation and editorials are not helpful.
I got the same answer from the uncle that is a accountant
See what my accountant said just before this thread. Not one financial advisor has a clue on this.
I managed to draw down in September and was planning to do so again this year.
spoke to my accountant yesterday. I got an offer of €7100 and he just basically said, take it and enjoy it. Nice gift to get after the Christmas. Nothing I can do will increase the amount. If it’s got the CB’s approval then it is what it is.
Hi There
Has anyone been in contact with a financial advisor on this matter?
Not sure who would be best to contact.
thanks
My tax consultant said its not taxable as it would be deemed as compensation by revenue despite the wording on the UB letter. If it was taxable virtually everyone would be at a loss.
Anybody have any feedback from UB about the loss of the ability to remortgage on the same terms as your current mortgage. This is potentially a massive loss if you were going to avail of it. I'm waiting on UB reply ....
The offset product is a legitimised gain though. It's never been a case that whilst using this product to reduce interest (gain) that that was ever questioned for Tax.
So what sense does it make that if we can no longer do that on a product that didn't originally have a liability that the compensation gets taxed and we make a loss on what we would have had we kept it.
Sorry it was never a gain as long as you were paying the loan back how can it be a gain? Interest is the banks gain and they were losing out on a proportion or all if the full amount was offset at no stage during the mortgage was the customer getting a gain. If your definition was to be applied with all mortgages anyone paying off a mortgage early would be subject to tax and that is not the case
They also tell you to get Tax advice and no tax specialist has a clue. I couldn't get an actual answer from Tax specialist.
Anyone else had any joy with getting a clear answer,?
As you say: "it is a payment to cover the loss of future gains" so of course it is a gain otherwise there would be no need to compensate you in the first place and furthermore it is a realised gain that is a fact. Whether it is taxable or not remains to be seen. First we'll hear from the Revenue on how they propose to deal with it and then we'll see if someone appeals it and so on.
