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How will the Ulster Bank Wind Down Affect Mortgage Customers?

Updated: Apr 5, 2023

I have my Mortgage with Ulster Bank Ireland. What happens next?

The first thing to say is that there is no need to panic. The wind down of Ulster Bank in Ireland will take some time plus you have protection under the Consumer Protection Code (CPC) regarding the Terms & Conditions of your mortgage.

Your repayment terms and interest rate will all remain the same and will be automatically switched across to the new entity.

My mortgage is with Ulster Bank Ireland. Should I switch to another bank?

Ulster Banks mortgage book in Ireland (along with other loans) are likely to be bought by another organisation and your mortgage will automatically transfer across. However if you are not currently on a tracker mortgage with Ulster Bank this could be an opportune time to see if there is better value to be had by switching to a new lender. There are various incentives including cash back & lower rates available.

I have a mortgage application in with Ulster Bank. What should I do?

Mortgage applications are still being accepted and processed with Ulster Bank and mortgages are still being drawn down.

How much would it cost me to switch my mortgage from Ulster Bank?

In Citywide do not charge any fee for our service. There would be a valuation & legal fee, however most lenders have ‘Switcher Packages’ which cover these fees. Our expert mortgage advisors would provide the saving options that each lender has on offer and would also be able to advise on the switcher packages from each lender. We would handle the entire process from start to finish....including all of the paperwork!

What happens if a vulture fund takes over my Ulster Bank mortgage? Should I be concerned?

No. Vulture funds have a bad reputation in Ireland partly due to the tabloids hype surrounding them and a lack of understanding about what they do.

To put it simply, a vulture fund is a company that invests in debt which is considered weak or in default. Your rights as a mortgage holder remain intact are no different than they are with any other Irish bank.

However it is important to note that if a fund buys the Ulster Bank loan book, you would not be able to borrow/top up your mortgage if you wanted to trade up or build an extension etc. In this scenario you would have to switch provider in order to take out a new mortgage or drawdown additional funds.

I am currently in dispute with Ulster Bank in relation to my Mortgage. What happens now that they are pulling out of Ireland?

If you are in a financial dispute with Ulster Bank in relation to your mortgage, this dispute will carry forward to the new purchaser. The new purchaser will apply to court to change the name from Ulster to the new entity.

If you have any queries in relation to your Ulster Bank Mortgage, get in touch to discuss your options.

For more information on our services please see our mortgage broker page. 

Rob O’Neill

CEO Citywide Financial

01 5138710

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