What changes at Ulster Bank from today?
The kick-off for Ulster Bank’s departure from the Irish market was sounded last February when, after months of speculation, it confirmed it would phase out operations here.
While the process still has a bit of a way to go, today for the first time the finish line has appeared.
Releasing its quarterly results, Ulster Bank said it will start writing to clients early next year telling them what to do.
While this is not an “act now” warning, it is a notice to be ready to act.
So what is happening today?
As of today, Ulster Bank will no longer accept new applications for savings accounts, checking accounts, credit cards or loans.
New mortgage applications will still be accepted, but only from existing customers.
Those who have existing accounts with the bank have nothing to do yet.
However, they are urged by Ulster Bank to “consider their options, receive support services and prepare to choose a new banking provider, especially for current and deposit accounts”.
Should I put this aside until next year then?
By law, clients must be given at least two months’ notice before their accounts are closed.
Ulster Bank has announced plans to start sending official account closure notices to current and deposit account customers early next year.
This gives customers time, but according to Daragh Cassidy of price comparison site bonkers.ie, checking account customers in particular should consider moving as soon as possible.
“While Ulster Bank mortgage clients will likely see their loans sold to Permanent TSB and AIB, no such deal is likely to be made for current account clients for practical reasons, which means that Account holders should look for a new supplier themselves, ”Mr. Cassidy said.
“With Ulster Bank and KBC’s intention to exit the market, the choice has narrowed, but there are still eight current account service providers in Ireland: AIB, An Post, Bank of Ireland, Credit Union , EBS, N26, Permanent TSB and Revolut, “he added.
What is the situation with my Ulster Bank loan?
The bank said it continues to make progress with AIB and Permanent TSB on the sale of its performing loan portfolios.
AIB has agreed to purchase € 4.1 billion in corporate and business loans from the bank, while Permanent TSB is in the process of acquiring € 7.6 billion in standard mortgages and small business loans. companies as well as 25 branches of Ulster Bank.
Discussions are said to be “ongoing” with other parties about their potential interest in other parts of the bank.
This may include Ulster Bank’s follow-on mortgage portfolio, which is valued at around € 6.5 billion.
There were reports earlier in the year that AIB was in talks to acquire the low margin loans.