nat west

Concerned Ulster Bank mortgage holders look at their options for switching

Ulster Bank is expected to announce a slow wind-down from Irish market.

Mortgage brokers and banks have reported a surge in Ulster Bank homeowners making inquiries about switching providers.

The mortgage holders fear the bank will announce a shut-down on Friday and their home loan will end up in the hands of a vulture fund.

Its parent NatWest has been reviewing Ulster Bank’s position in the Irish market for five months now, with most analysts expecting the bank to announce a slow wind-down of the bank.

Brokers have received an influx of calls from Ulster Bank mortgage holders asking whether or not they should move their mortgage to a different lender. Mortgage holders want a greater sense of security. No immediate action is required by Ulster Bank customers, but this could be the perfect opportunity for thousands of mortgage holders to review their current contract with a view to switching to a better rate.

Although the future of Ulster Bank is still unclear, even if they do decide to exit the Irish mortgage market, they will still have a duty of care to current customers and obligations to fulfil in that regard. However, it would be prudent to look at this time as a chance to review your current mortgage position , specifically the rates being paid and how these compare to what’s on offer from competitor lenders.

Ulster Bank customers are now asking legitimate questions about the proposed wind-down of the Bank’s business in this market- are their loans safe? Who will own the loan in a year? Will an Ulster Bank mortgage holder end up with their loan in a vulture fund? This, coupled with the arrival of Avant Money to the market, which has rates as low as 1.95pc for those with a lot of equity in their homes, has prompted those with mature mortgages to consider switching.

One major Irish bank, which did not want to be named, said it is seeing a surge in inquiries from companies also, asking about moving their business banking to it. The banker said: “We are seeing inquiries on the business side. They are waiting to see what is announced. There will be a long lead-in if Ulster Bank does decide to close, but people are looking at the options.”

A spokesperson for Permanent TSB said it was seeing a general uplift in enquiries across the board, from both retail and SME customers.

The Irish League of Credit Unions said the likely closure of Ulster Bank and the expected culling of some Bank of Ireland branches meant people should consider using credit unions instead.

Credit unions are well placed to provide a range of banking services including personal loans, mortgages, SME loans, and, in an increasing number of credit unions, full current account and debit card services.  

Whether you are a first time buyer, moving home, looking to switch lender if you have any concerns about the issues raised in this article,  or investing in a buy-to-let property, why not chat to a Seaspray mortgage adviser today about finding the mortgage that’s right for you- tel.+353 1 7070 000     or email     john.finnamore@seasprayfs.ie

EON

Source: This is an online extract taken from article written by Charlie Weston as follows:  https://www.independent.ie/business/personal-finance/concerned-ulster-bank-mortgage-holders-look-at-their-options-for-switching-40104156.html 

Feb 18th, 2021

WARNING: IF YOU DO NOT MEET THE REPAYMENTS ON YOUR LOAN, YOUR ACCOUNT WILL GO INTO ARREARS. THIS MAY AFFECT YOUR CREDIT RATING, WHICH MAY LIMIT YOUR ABILITY TO ACCESS CREDIT IN THE FUTURE. WARNING: YOUR
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