"Why does Ulster Bank charge Irish customers much higher rates than those in NI?"

Brendan Burgess

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A good piece in the journal.ie

Why does Ulster Bank charge Irish customers much higher mortgage rates than those in NI?

Why the different rates, Jim?
Brown [UB CEO] said the reason it charged higher mortgage rates in the Republic was because it cost extra to finance loans here and the company was taking more deposits in Northern Ireland...

Brown said the amount it paid for deposits in Northern Ireland was about half what it cost the bank in the Republic.
Ulster Bank currently holds about €25 billion in customer deposits and has €28 billion issued in loans.
‘Screwing’ loyal customers
But Labour senator Aideen Hayden accused Ulster Bank of using loyal customers and new mortgagees to prop up its big tracker portfolio.


“There is a perception out there … that you are basically making your variable rate customers pay for the extended tracker mortgages which you handed out when times were good,” she said.
 
What is more insidious in my mind is blaming tracker mortgages. They are not the reason for the high SVR rates. They are the excuse. The get-out-of-jail-card for the banks in our national game of monopoly
 
Brown said the amount it paid for deposits in Northern Ireland was about half what it cost the bank in the Republic.

This is actually true, check their deposit rates in NI.

Also, I think he mentioned an "establishment fee" in one jurisdiction (I don't remember which one) which affects the overall costs.
 
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