Natwest considering closing Ulster Bank in the ROI

'Competition' in a 'market' dominated by Government owned banks. Yeah

JTMan wrote: »

The Business Post reports here (paywall) that a decision on the future of the bank will be made by the end of October.

Nobody sensible will start a mortgage application process with Ulster Bank until there is clarity.

Several media reports today say that closure is the most likely option.

They wouldn't have let it be known they were considering closure unless they are actually going to do it. It is a virtually self-fulfilling prophecy.

Sheep Shagger wrote: »

For a bank potentially leaving the market, they've launched a green loan - jumping on the bandwagon.

https://amp.independent.ie/business/personal-finance/ulster-bank-to-launch-new-green-mortgage-39578820.html?__twitter_impression=true

Their new green mortgage offers a worse rate than their non-green-only two year fixed rate. Also the rate is significantly above the Avant Card rate of 1.95%.

One can do better than choosing this new product.

JTMan wrote: »

Their new green mortgage offers a worse rate than their non-green-only two year fixed rate. Also the rate is significantly above the Avant Card rate of 1.95%.

One can do better than choosing this new product.

But a longer term on fix is always dearer. That is same for all the banks. Avant rate is based on way lower LTV to qualify.

JTMan wrote: »

Huh? The Avant Money LTV max is 60%. The Ulster Bank LTV max with their green product is 60%.

My error. Thought it was 40% ltv. That is a really good offer. Take up must be great

JTMan wrote: »

Cerberus are considering purchasing Ulster Bank’s €20.5bn mortgage book in the Republic according to The Irish Times report here.

Adds a little more weight to the chances of UB exiting the Irish market.

I wonder if a decision will be made around the long weekend at the end of this month.

I would think the decision is already made.

they're still advertising for mortgages on the radio. I mean you'd be nuts to take out a mortgage with them when they've said they might be leaving, I hope they're telling any applicants this too.

phormium wrote: »

Wonder how they would deal with the old Offset mortgages that are linked to deposit and current accounts? The offsetting of the credit balance of the linked accounts against the mortgage balance was their main benefit, if they sell the mortgage bit what happens the existing terms of the offsetting!

Well if the current account is closed (buy them) there's nothing to offset against the mortgage. Problem solved for them! I doubt that would happen though. Presume offset mortgages (current account element anyway) counts as some form of deposit account. For that cerebus (or whoever purchases it) would need a banking license. Probably so few accounts it wouldn't be worth their while getting one. Nat West would know this so imagine they'd just keep those mortgages on their books and move them to the UK and let them run down.

But if they just closed your linked current account aren't they breaking the terms you took out the mortgage on, the whole point of it is the offsetting.

I imagine as you say they would just run them from UK, there can't be that many left at this stage, mine has another 7 or 8 yrs to run I think and I pay no interest thanks to the offsetting.

I know they made a change to the t&cs of the original CAM current account mortgage when they changed it to an Offset mortgage, one of the features relating to repayment choices was removed, can't remember exactly but think we got something in exchange for signing away that feature, definitely had to sign something so hardly did it for no benefit!

Maybe so, they were on offer for a good while after I took out mine, FA gone since 2009/10 ish but I'd say the Offset must have stopped same time as trackers in 2008 as it was a tracker rate so could still be longer terms around.

The Irish Times have re-stated Natwest stance on this which is "in the event of any changes being made to our strategy, these would be undertaken with full consideration of any impact on customers, colleagues and shareholders in the first instance”.

Not exactly a denial that closure will happen. I would guess that transalation of that statement is that closure is happening but there is lots of planning to do on impacts for customers, staff etc and they are currently in planning mode.

_Brian wrote: »

With trackers being such a distastful product for banks at the moment.. Think we're on ECB + 0.75%

Are these likely to be sold to a vulture fund ??

ITs a good loan as never missed or late payment...

Would a vulture fund be more open to a cheeky offer to pay it off on the cheap ??

This comes up all the time. Why would the 'vulture' fund be interested in a deal. They have bought the loan at a discount that is now likely profitable to them. You are paying the loan off diligently and therefore at no additional cost to them. Would you do a deal in these circumstances?

Doodah7 wrote: »

This comes up all the time. Why would the 'vulture' fund be interested in a deal. They have bought the loan at a discount that is now likely profitable to them. You are paying the loan off diligently and therefore at no additional cost to them. Would you do a deal in these circumstances?

Geuze wrote: »

Tracker mortgages are profitable, even at 0.75%.

Thats fair enough...
Can't blame a fella for wishin..


Have cash in the bank.. at current interest rates doesnt seem any use to pay it off unless i got a decent discount..

_Brian wrote: »

Thats fair enough...
Can't blame a fella for wishin..


Have cash in the bank.. at current interest rates doesnt seem any use to pay it off unless i got a decent discount..

If you are not earning more interest on your funds on deposit than the interest rate of your mortgage, then it makes no sense to be paying the higher interest mortgage loan.

You will get a better 'return' on your money by clearing your mortgage.