https://www.rte.ie/news/business/2023/1127/1418724-ulster-bank-mortgages-to-lose-offset-facility-next-year/
Not sure how you are trying to contact them. But from my experience the online stuff goes absolutely nowhere. Applied for redemption figure early Feb. Rang them end of March and they hadn't even got the request.
Ring 0818 210 260. Even then it depends on who you get so don't wait. If it hasn't happened when they say it will, ring again, and again. The mortgage is not meant to go for 2 months at least so it is still up to Ulster Bank to do this for you.
I doubt your offset is gone anywhere yet, things don't happen that fast in bankland! You have to ring them, well at the moment anyway, and transfer whatever sum you want to offset into the mortgage. Family member did it the other day, transferred in I think around 30k from the facility and confirmed that would be available again to redraw next year when they needed some.
Now maybe if you don't contact them they will just close the offset and send you the money if you haven't transferred it out already yourself.
I’m anxious as to how the Pay and re Draw will work. No reply from Ulster contact now my Offest has gone to Dilosk?
MOD: We do not speculate on the possible actions of financial institutions, their reputations et al. The last thread had to be closed becasue it descended down the same rabbit hole.
@rameire I think you’re right, it’s not going to happen overnight and even if everything goes smoothly for them (which I’m not sure is guaranteed) it’s still going to take time.
Plus in the Irish times article there was this;
“Asked how many loans remain on Ulster Bank’s books, a spokeswoman said the lender could not comment on future sales. However, she said: “Following conclusion of all agreed loan sales there may be a minimal number of loans that may remain on our balance sheet.”
So what happens to those loans? Do UB need to stick around and manage those?
Banking bodies I'd believe where. But Irish times article on 10th December quote Revenue as saying they where left completely in the dark on these payments.
@kenif Do we know that for certain? UB must have informed, and possibly worked with the likes of the Central Bank and the banking authorities when they were coming up with this solution. There’s no way those bodies found out about Ulster Banks solution on the same day that us customers did.
Would revenue not have also gotten wind of this?
If you think Ulster will be gone this year hold on to you pants. I would think as this has only just been announced and they still have other mortgages on the books they will be here well in to 2025
In fairness to Revenue, they where blindsided by this. No consultation or even notification from UB. They have asked punters to get information from UB about the payment and how it works. UB should at very least had all that ready to go to Revenue as soon as announcement was made.
I have used the payment to redeem so will struggle with any tax bill. But if I waited any longer I'd of been paying interest. Took the gamble. But with tax there are often ways to offset or reduce that bill. Would of been good to know the full ramifications before offsetting ended and interest had to be paid.
That’s somewhat concerning, they’ve had 6 months to look at this. The cynic in me thinks that Ulster Bank will have finalised their exit and then the Revenue will announce that the payment is taxable. By that stage too late for punters to raise a fuss because Ulster Bank will be gone baby gone.
How terribly convenient that would be for everyone involved (apart from the customers that is). I hope I’m wrong.
Thanks for sharing Shanoh. I would of thought it was either taxable or not. Not sure why there is a "decision" to make. I hope they decide favourably. Will make the payment fairly meaningless as compensation if taxed.
Revenue got back to me to say no decision yet about taxation on the goodwill payment and apologies for delay
If I am reading this correctly this is a much much better scenario for everyone than the portfolio being sold to companies like Pepper
https://www.rte.ie/news/business/2024/0503/1447198-ulster-bank-sells-4-000-former-offset-mortgages-to-dilosk/
Next Chapter
No you have to reduce your Mortgage. And get them to reduce your repayments over the term. It means paying down(giving them the money in the current account) but you can the redraw it if you need it again.
But only way to reduce interest after 23rd of May is to reduce your mortgage.
I redeemed mine in January and was told 4weeks which I taught was a bit too quick so did not expect it, I rang them up a couple of weeks back and was then told 3months would be the earliest from the time it was redeemed so it is coming up to that soon, I just taught if anyone else had similar news regarding this,
i owe 128000 and have 129000 in the current account. What do i have to do to minimise my interest. Withdraw current account money (129000) and let them close it? Then put back in less than what i owe, thus paying minimal interest? So if i owed 125000, put 123000 in against it and pay interest on 2000?
No but they say 5-6 weeks by registered post after redemption. The rate at which they are doing everything else I'd be adding a bit onto that.
Just wondering has anyone cleared their mortgage after receiving the payment and if so have you received your deeds of your house yet
Will be interesting alright to see how long it takes them and if there will be any further obstacles in their way
Absolutely, how orderly it will be remains to be seen.
Ulster Bank are leaving the market.
The Offset mortgage is just taking time to go.
Interesting, I was told something similar, albeit under a different context. I thought the whole point of this exercise was to allow Ulster Bank to exit the market. Although if they are sticking around they won’t have the offsetting feature to deal with.
Regarding the point that fliball123 made, you can still use the pay and redraw feature which admittedly is not as good as the offsetting feature but can still be used to reduce your interest exposure.
You do realise you cannot offset anything and you will be paying the ECB rate + what ever you got on your morgage
I rang the mortgage number to ask for the redemption letter. The person I was talking to said that the mortgage is staying with Ulster bank. They still don't have anyone to take them over. So looks like mortgage terms staying the same. I think I won't pay it off now.
I got the Ireland based qfa rep to transfer it to my no on UB bank account. He processed it. It went through on Friday. (I dont have a card so i cant do it using a card reader)
Thanks for that..
@McSween It’s taking them weeks to do what you would think should only take a couple of days at most. I rang them up mid Feb to transfer the Good Will Payment I was given into my mortgage account and recalculate the monthly repayment. They told me it could take up to 10 days. Over a month later it still hasn’t been done.
@paneur I was talking to them about the pay and redraw. It’s basically you lodging a payment against your mortgage that you can withdraw again later easily enough (you just need to send them a letter and ensure that you have a life assurance policy assigned to the mortgage). You don’t have to go through any loan approval process apart from that. However if what you lodge covers the full mortgage it’s an automatic redemption. Also you have to make sure that you are mindful of the way the facility attached to the mortgage reduces every year. You can’t withdraw more that the available facility. It’s nowhere near as flexible as the offset arrangement was and you can’t offset fully.
But I’m going to give it a go for a while and see how it goes.
Im still trying to get my payment out of the account. I sent the paperwork weeks ago
Anyone have any real life experience of using the " pay and withdraw "??. Info from ulsterbank is very vague. Can't find much online or in the terms and conditions
