Ulster Bank's proposal to deal with offset mortgages

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Nothing this morning anyway! I'm just due the basic amount but no sign of it yet, I intend taking out the 250 when it arrives and spending it on something frivolous
 
The helpline today saying on or shortly after the 10th and if its being paid by cheque, on or after the 19th.
 
No payment yet - €16,852 based on the 2 years to 31st. of August.

One issue that I have, is the arbitrary nature either 6 years vs 24 months leading up to the 31st. of August.
We are expected to pay the mortgage for 30 years, I suggest that the ex-gratia payment should be calculated on the term to date.
That would suit me, of course.
Mortgage holders don't have any input to "agreement" that surely exists between Central Bank and Ulster Bank.

I just had a look at the average amount in our facility account over different time periods

2 years to 31st. of August average amount around €6,900
6 years to 31st. of August average amount around €15,400
10 years to end of 2023 average amount around €45,400
18 1/2 years since June 2005 average amount €131,400

It appears that the interest hikes over the 2 years compared to the average over six years are the governing factor in the equation.
 
For what it's worth, had a call from FA from Ulster Bank to clarify a few things. So the pay and redraw facility remains, as we know, and while it's not as simple to use as the offset facility, it's still possible to offset your balance with any available funds and redrawing the funds is not subject to credit eligibility. So it's not like you have to apply to draw down your funds again like a top up loan.

You would have to wonder why they are making (in some cases) substantial payouts for the removal of the offset? or am I missing something?

Also, re: the advice in the letter to contact them if you are in receipt of a lump sum which you had planned to use for future offsetting; it appears they have strict criteria for the source of any lump sum you are planning to use i.e inheritance, redundancy, insurance payout or medical reasons (didn't quite catch that part).
 
Anyone in a position to pay off the mortgage if so does anyone think there could be a deal on the table to pay off the mortgage as these mortgages will be sold on at a discount and considering UB are pulling the rug from under their customers how likely are they to give the customer the same discount if paying the mortgage in full?
 

I'd love to think so but I doubt it.

If they were distressed loans, they would most likely be sold at a huge discount to an investment fund and I would say yes, the fund will sell you the loan at a discount if you can come up with the cash. However, the bulk, if not all, of these loans are performing and have an average term remaining of about 10 years and an average balance of about 150k. So a buyer is more likely to sit on these and let them run their course.

They couldn't get anyone to touch them up to this point but now that the offset facility is removed, they are basically a standard tracker loan and will possibly be sold to one of the main stream banks.

I could be mistaken though, and I would say the deal is already done so time will tell who it turns out to be. Anyone have any thoughts on this?
 
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If you are thinking of redeeming your mortgage with the help of the payment, you can always pose that question to Ulster Bank. Redeeming the mortgage is something I’m strongly considering at this moment myself and I will probably pose the same question to UB.

I’m not expecting a positive response though. Like target106 said, after the offset is removed my mortgage will become a standard performing tracker mortgage, so they should have no problem selling it. But I would imagine that they are probably going to sell slightly below par, so maybe if you reckon that they will sell at 96% of their remaining value and you offer 98%, they might consider it? I’m guessing they won’t though.
 
To the best of my knowledge, a bank will never do a one to one deal with an individual, they will only ever do deals on the loan book. Funds are different, they are usually buying at a big discount and will offload it again for a profit.

Still, if you don't ask, you don't get, and this is a unique set of circumstances and their last obstacle to closing the doors
 
Received my goodwill payment today.. not my first goodwill payment from Ulster Bank.. received a far lesser amount years ago when they made an error with my interest rate payment and I made an official complaint! Many thanks to all who posted here over the last few months.. very helpful and informative. I have been fully offset for a number of years and plan on now redeeming my mortgage ASAP. Thanks again to all
 
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