# Ulster Bank selling more NPLs



## Brendan Burgess (11 May 2018)

Press release  yesterday 

An Ulster Bank spokesperson said:


_“As signalled in February, Ulster Bank can now confirm that it has prepared a portfolio of its non-performing mortgages for sale. This difficult decision comes a decade after the financial crisis began and the continued extension of forbearance cannot be maintained. Not all mortgages are sustainable and we are obliged to reduce the level of non-performing loans on our balance sheet. For mortgages that are not sustainable, additional forbearance will not bring them back to a performing position.”_


On background (can be used as fact)


Data points:

§The portfolio consists of RoI mortgages split approx. 45% BTL and 55% PDH (by value)

§The face value of the loans that are being included is currently c €1.6bn.Given we will continue to engage with customers, this may change, which is normal in such portfolio sales



PDH:

·  73% first entered arrears between 7 and 9 years ago.

BTL:

·  75% have been in arrears for more than 12 months during their lifetime.


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## ElaineMac13 (11 May 2018)

Hi Brendan

Thanks for this detail. Since the announcement by Ulster Bank yesterday I Have contacted them twice to see if our mortgage is one of the accounts being sold. I have been informed on each occasion that nothing has yet being "set in stone".

I am extremely worried in case our account is sold. We have been in arrears for a number of years. Tracker mortgage 300,000 and arrears of €27,000. We have always engaged and had arrangements in place. We are now in a step up arrangement since 10april and making full payments to include an additional €100 of the arrears. It ends in September and aim to capitalise the arrears then.  We are now in a position to meet full payments and the mortgage is sustainable.

Do you think we are at risk of being sold to vulture fund. Also when will the bank notify the customers involved.

Any advice greatly appreciated.

Thank you


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## Brendan Burgess (11 May 2018)

Hi Elaine

I don't think that you will know until after the mortgage is sold. 

If you have family or friends that could lend you the €27k, you should probably consider doing so. 

If not, don't worry too much. If your mortgage is sold, the same terms and conditions apply.  

They can't take your tracker, but they could try to repossess. It would take them a long, long, time. 

Brendan


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## Obrien (11 May 2018)

What is considered to be a forebearance arrangement? My colleague has a payment plan in place via MABS, is that considered forebearance or do mortgage holders have a period of grace due to payment plan being in place


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## ElaineMac13 (11 May 2018)

Thanks Brendan.

Unfortunately not in a position to get money to pay off arrears. Have you any idea as to how long the sale process will take. Also will UB still consider the full payments we will continue to make and by Sept if not sold agree to capitalise as indicated.

What can we expect from culture fund. Presume they would still have to go through court to repocess. How long would that all take. I am so worried. This is our family home and we do not want to lose it. 

Once again thanks for your advice


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## Brendan Burgess (11 May 2018)

Hi Elaine

You should not be worried. 

Ulster Bank might well capitalise the arrears before they do the deal, so as not to sell your mortgage. 

As things stand, the courts would not grant an order to someone who is paying an agreed amount and who engages with the bank. 

You have very little to worry about.   I mentioned paying off the arrears to put it beyond all doubt. But if you are gradually reducing them, that is good too.

Brendan


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## ElaineMac13 (11 May 2018)

Thanks for getting back Brendan.

I would be interested to hear from any other forum members who may have been involved in the first sell off by Ulster Bank. How their experience was etc. 

Thank you


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