Mortgages

Ulster Bank has entered into a Binding Agreement with Dilosk Designated Activity Company (Dilosk) for the sale of c.4000 Flexible  Mortgages & Former CAM Mortgages (previously named Offset Mortgages & Current Account Mortgages prior to new terms and conditions becoming effective on 23rd May 2024). This agreement is subject to regulatory approvals. Please be assured that this does not affect your legal and regulatory protections.

On 19th June 2024 we wrote to impacted customers to provide them a minimum of 2 months notice that their mortgage will transfer to Dilosk. It is anticipated that mortgages will transfer in the second half of 2024 and we will write to impacted customers again within the week after the transfer has taken place to confirm its completion. The important thing is that no further action is required by existing mortgage customers as a result of this letter.

On 19th June 2024 we wrote to impacted customers to provide them a minimum of 2 months notice that their mortgage will transfer to Dilosk. It is anticipated that mortgages will transfer to Dilosk in the second half of 2024 and we will write to impacted customers again within the week after the transfer has taken place to confirm its completion. It is important to note that this agreement is still subject to regulatory approvals. Please be assured that this does not affect your legal and regulatory protections. The important thing is that no further action is required by existing mortgage customers as a result of this letter.

The existing mortgage rate product you hold at the time of transfer, will transfer with you to your new provider. We want to reassure you that you will continue to retain your mortgage rate product in line with your mortgage documentation. Where a maximum rate limit applies to your mortgage, this will continue to apply after your mortgage has transferred. Please be assured that this announcement does not affect your legal and regulatory protections.

Ulster bank's decision to enter into this Binding Agreement has been taken after a period of careful consideration. If you were to redeem your mortgage in full in advance of any transfer, your mortgage would not be included in the transfer to Dilosk. If any portion of your mortgage is on a fixed rate, a breakage cost may be applied if your loan is repaid whilst on a fixed rate in accordance with the terms and conditions for your mortgage loan. 

You should be aware that tracker interest rates are no longer available on the market and if you switch to an alternative mortgage product with another provider, it will not be possible for you to go back to a tracker interest rate in the future. Additionally, if you hold a Flexible Mortgage  (previously named Offset Mortgages s prior to new terms and conditions becoming effective on 23rd May 2024) and you switch to an alternative mortgage product with another provider, you will no longer be able to avail of the other features and benefits of a Flexible Mortgage such as the Available Facility feature (“Pay and Re-draw”).

Ulster Bank will not be offering any discount on the balance outstanding if your mortgage is redeemed. If you need support, are in financial difficulty or in a vulnerable situation, we are here to help you with your banking needs and queries. Please call us on 0818 210 275 (Open Monday - Friday 9am – 5pm). If you are calling from abroad, you can get in touch with us on 00353 818 210 275.

If you have any additional concerns or questions about your mortgage, contact us on 0818 210 275. You may also wish to seek independent financial or legal advice. You can contact the Money Advice and Budgeting Service through www.mabs.ie. Additionally, you can contact Citizens Information at www.citizensinformation.ie. 

If your contact details or circumstances have changed recently or you believe we hold out of date contact information for you, you can update those details by contacting us on 0818 210 275 or 00353 818 210 275 if you are calling from abroad. 

Yes, you will still have access to the Available Facility/”Pay and Re-draw” after your mortgage has transferred to Dilosk.  The Available Facility feature allows you to reduce your mortgage interest costs. It offers you the flexibility to make payments into your mortgage with the ability to re-draw those payments at a later date i.e. “Pay and Re-draw”, subject to your terms and conditions and not exceeding your maximum facility limit.

Ulster Bank is leaving the market and as part of its planned withdrawal activity has made every attempt to find a solution for your Offset product with a full service Bank. However, as this is a unique product and not offered by any other Irish Bank, this was not possible. However, we are delighted that we have a range of solutions, as outlined below. While from 23rd May you will no longer be able to offset credit balances from your Current or Savings accounts against your mortgage balance, you will retain your Available Facility feature which allows you to make additional payments into your mortgage with the ability to redraw those payments at a later date i.e., ‘Pay and Re-draw’, subject to your terms and conditions and not exceeding your facility limit. Making these additional payments helps you to reduce your mortgage interest costs. However, unlike offsetting they are not automatic, and you will need to take action to make these payments directly to your mortgage account and to re-draw them at a later date. This would allow you to replicate the key benefits of offsetting interest and your repayment, whilst still having access to your funds if you need them in future.

You will also retain your tracker rate on your mortgage for the remaining term of your mortgage, or until you choose to move off it, if sooner. 

In addition to the above, Ulster Bank is now giving you 6 months’ notice that you will no longer be able to use your Current Plus/Facility/Instant Access Plus account(s). We have written to all customers that hold Offset mortgages providing detailed information about these changes and what they will mean. ​

Yes, your Available Facility feature allows you to reduce your mortgage interest costs. It offers you the flexibility to make additional payments into your mortgage with the ability to re-draw those payments at a later date i.e. ‘Pay and Re-draw’, subject to your terms and conditions and not exceeding your maximum facility limit. The amount you can redraw will reduce over time in line with the annual facility limit recalculation. Making additional payment will help reduce your mortgage interest costs but unlike offsetting they are not automatic and you will need to take action to make these payments directly to your mortgage account and to re-draw them at a later date.

We are here to help you. If you need additional support, please call us on 0818 210 275 (00353 818 210 275 if calling from abroad). Our team are on hand to answer your queries and if it cannot be answered straight away we have a dedicated Offset Customer Support team who will call you back. 

Yes, Ulster Bank has the legal right to make these changes, as outlined in the letter we sent to you. In our letter we set out the relevant sections of the “Ulster Bank Offset Banking Terms and Conditions” which allow us to remove your offset facility, close your Current Plus/Facility/Instant Access Plus account(s) and to make consequential changes.  These sections are:

Section A Conditions 4(a), 8(d) and 10; 

Section B Part 1 Conditions 5.2 and 7; 

Section D Conditions 15, 16 and 18.  

The full terms and conditions are available to download on our website at www.ulsterbank.ie/brochures.

We acknowledge that this is a big change and this product is no longer available in the market, therefore and as a result of this an ex-gratia goodwill payment is being made in recognition of the changes being made to your mortgage product. However you will still retain the ability to draw funds from your Available Facility on an ongoing basis, which means that if you pay money into your mortgage, it reduces your mortgage balance and therefore your interest and repayments. You can then draw those funds back out again at a future date subject to staying within your overall Facility Limit.  This allows you to replicate the key benefits of offsetting interest and your repayment, whilst still having access to your funds if you need them in future

Yes, customers can still request to draw the difference between their mortgage balance and the Facility Limit at any time. This feature is not changing.

Your Available Facility feature allows you to reduce your mortgage interest costs. It offers you the flexibility to make additional payments into your mortgage with the ability to re-draw those payments at a later date i.e. ‘Pay and Re-draw’, subject to your terms and conditions and not exceeding your maximum facility limit. Making these additional payments helps you to reduce your mortgage interest costs but unlike offsetting they are not automatic and you will need to take action to make these payments directly to your mortgage account and to re-draw them. To use this facility, please  call us on 0818 210 275 (00353 818 210 275 if calling from abroad).

We calculated your goodwill payment by considering how you used your Offset Arrangement in the past and what you may have saved in future mortgage interest if you were to retain offsetting out to the end of your mortgage term. In calculating how you used your Offset Arrangement in the past, we have used the higher of the average offsetting  balance you have had over the past 6 years or the average offsetting balance over of the last 24 months in calculating your recent usage. 

In calculating your future mortgage interest, we have used the higher of your facility limit or mortgage balance. The calculation also uses a forecast of the future interest rate that will apply to your loan.

We acknowledge that your future offsetting balance could increase and interest rate changes, are by their nature, unpredictable. To take account of this, we have doubled the payment to you subject to your goodwill payment not exceeding the full amount of future mortgage interest  you may have paid. We have also included €250 towards the cost of independent financial advice in your total goodwill payment. 

If you have not availed of your offset facility to reduce your mortgage interest payments or have used it in a limited way, a minimum goodwill payment of €5,250 will be paid. 

You are free to redeem your mortgage or switch to an alternative lender at any time. The ex-gratia goodwill payment will not be affected by such a decision and you will continue to beneifit from your existing offsetting arrangement until 23rd May 2024. If you wish to consider an alternative mortgage product with another provider to suit your needs, we recommend you seek advice on this. Your ex-gratia payment includes a payment of €250 towards the cost of independent financial advice. 

However, if you switch to an alternative interest rate, you will not be contractually entitled to go back onto a tracker interest rate in the future. Additionally, if you switch to an alternative mortgage product with another provider before 23rd May 2024, you will no longer be able to avail of the Offset Arrangement. Please note that if/when we sell your mortgage it will be sold as a tracker mortgage with the Available Facility feature retained to allow you to Pay and Redraw credit balances to reduce mortgage interest repayments.  

Where there are arrears on your mortgage, the goodwill payment will be paid off any outstanding mortgage arrears balance. If this payment is greater than any outstanding arrears balance, any surplus funds, including the €250 payment towards the cost of independent financial advice, will be paid to you. It is important to note that we are giving you full value today (& doubling) even though the benefit would actually accrue over the remaining life of the mortgage

However,  in circumstances where your arrears balance is €1,000 or less, the full goodwill payment will be paid to you and not paid off the arrears balance. You will be required to bring the account back up to date in accordance with the Terms and Conditions of your loan.  

As your loan is currently in arrears, the bank has exercised its right to use the ex gratia goodwill payment to reduce or clear these arrears and to help you get back on track. If the goodwill payment is greater than your outstanding arrears balance, any surplus funds will be paid to you by cheque or into your Current Plus or Facility/Instant access account.  Irrespective of arrears the the €250 payment towards the cost of independent financial advice will be paid directly to you. ​ 

However, in circumstances where your arrears balance is €1,000 or less, the full goodwill payment will be paid to you and not paid off the arrears balance. You will be required to bring the account back up to date in accordance with the Terms and Conditions of your loan.  

It is our view that this ex-gratia goodwill payment should not have tax implications. However, this should not be interpreted as tax advice as Ulster Bank cannot provide tax advice to customers on this matter. Each customer will need to consider their own unique circumstances. The tax framework in Ireland is one of self-assessment,  meaning each taxpayer must make their own assessment of taxes due and consider whether their circumstances require independent tax advice.  We ask customers to consider this in the context of their own personal tax affairs. 

Every customer is different and has different personal circumstances. As such we have provided an additional €250 payment which will support you in getting advice from an independent financial advisor who can assess your needs. 

Your acceptance of the goodwill payment does not affect your ability to raise a complaint.  If you do want to raise a complaint, we will ensure that it is considered in accordance with our normal processes however before you do this it would be good if we could get an  understanding of the nature of your complaint as we may be able to help you. However irrespective of the complaint all Current and Deposit accounts will become non operational from 23rd May. 

The ex-gratia goodwill payment will be paid on or shortly after 10 January 2024. 

We have taken a capital markets yield curve at a point in time (31st August 2023) which forecasts what wholesale interest rates will be in the future, and used this as a proxy for the future ECB rate that you may pay on your mortgage. This proxy yield curve is a prediction of what ECB base rates may be in the future, which is the reference rate for the loan.  The approach we have used is a market standard approach to estimating future interest rates. This forecast of ECB base rates is then increased by your current margin of 1.15%.

However, we recognise that actual future interest rates may not be the same as the forecast interest rate that we have assumed for your loan. To take account of this, we have doubled the base goodwill payment to you subject to your ex-gratia goodwill payment not exceeding the full amount of future mortgage interest that we have estimated you would pay over the remaining life of your mortgage based on our estimate of the future interest rate on your loan. 

If you do not cash your ex-gratia goodwill payment cheque within the six-month period, the payment will be lodged against your mortgage. If you are unable to lodge the cheque as it is currently made payable, or have any questions with regard to this payment you can call us on 0818 210 275 (00353 818 210 275 if calling from abroad). 

Where you have an eligible joint account with us, the goodwill payment will be paid into that account.

Where our records show that you are separated, and you do not hold a joint account with us, we will write to in December asking each account holder to complete, sign and return the Payment Instruction & Indemnity Form enclosed with the letter. Upon receipt of the fully completed form, we will endeavour to pay and distribute the ex-gratia payment, in accordance with the instruction, within 10 working days.

If you are recently separated and have not yet made the bank aware, please call us as soon as possible on 0818 210 275 (00353 818 210 275 if calling from abroad). We will send out some documentation for all parties to the mortgage to complete, sign and return. 

In the event that all parties to the mortgage are not in agreement as to how the ex-gratia payment will be made or the completed form is not returned by the date in the letter, the ex-gratia payment will be paid off the outstanding mortgage balance on or after this date.

Please note, if the mortgage has an arrears balance, the ex-gratia payment will be paid off your outstanding mortgage arrears balance. To process any payment that is greater than your outstanding arrears balance, we will write to you by 16th February asking  each account holder to complete, sign and return the Payment Instruction & Indemnity Form enclosed with the letter. Upon receipt of the fully completed form, we will endeavour to pay and distribute the ex-gratia payment, in accordance with the instruction, within 10 working days.

You can choose to lodge a lump sum against your mortgage, and this will reduce your balance and your interest charges. However, you should be aware that if you clear your balance completely, a closure process for the mortgage will commence. This is because a mortgage is a lending product and is not designed to hold a Nil balance. You should also read the separate FAQ below on amending the level of your repayments.

You will receive a letter shortly after 10 January with further detail relating to your goodwill payment. Where we are making the payment into your eligible account, your ex-gratia payment will be paid to you within 10 days of the date of this letter. Where we are issuing the payment by cheque, the cheque will be attached to the letter.

However, in circumstances where your arrears balance is €1,000 or more, the payment will be paid off your outstanding mortgage arrears balance and a letter along with any payment that is greater than your outstanding arrears balance will be issued to you by 16^th February. 

All customers will have 6 months to close their Current and Savings Accounts. If you do not have a bank account with another provider we recommend you start the process of opening new accounts straight away.  This will ensure you have enough time to move your regular payments in and our of your account. Keep your existing account(s) open until at least your goodwill payment is made. However, you can continue to offset your credit balances in your account(s) against your mortgage until the Offset Arrangement is removed in May (note: the way you use your Offsetting benefit now will not impact on how we’ve calculated your goodwill payment).

The ex-gratia goodwill payment will be made regardless of whether you decide to transfer your mortgage to another mortgage provider . If you wish to move your mortgage to another financial provider, you should do this at the time that suits you best. You can visit the Competition and Consumer Protection Commission's website for more information on switching lenders (https://www.ccpc.ie/)*. You should be aware that tracker interest rates are no longer available on the market and if you switch to an alternative interest rate, it will not be possible for you to go back to a tracker interest rate in the future. Additionally, if you switch to an alternative mortgage product with another provider, you will no longer be able to avail of the other features and benefits of your Offset Mortgage such as the Available Facility feature (“Pay and Re-draw”). The Available Facility feature allows you the flexibility to make additional payments into your mortgage with the ability to re-draw those payments at a later date, i.e., “Pay and Re-draw”, subject to not exceeding your facility limit. Making these additional payments helps you to reduce your mortgage interest costs. Furthermore, if you switch to alternative mortgage product before 23rd May 2024, you will no longer be able to avail of the Offset feature of your Offset Mortgage

Yes, you should now be preparing to close these accounts.  As they are not linked to your Offset Mortgage, we would encourage you to make preparation to move to a new provider, and close these accounts as soon as possible.

·You will continue to receive a quarterly statement for your mortgage which shows, as at the date of the statement, your Agreed Facility, mortgage balance and the Available Facility. 

 You can also contact us on 0818 210 275 to request information on your current mortgage balance and Agreed Facility.

Where you have an existing direct debit for paying your mortgage from an Ulster Bank account, you should switch this to your new current account provider.

Where you have an existing direct debit for paying your mortgage from an external (non UB) current account provider you don’t need to do anything, we will continue to collect your repayment.

Where you currently make your monthly payment manually, you can continue to do this either (1) electronically from another Bank, using the BIC and IBAN for your mortgage.  You will see these quoted against ‘Your International Bank Account Number’ on your most recent statement or (2) You can contact us on 0818 210 275 to make a Card Payment.

We will never reduce your monthly repayment unless you ask us to.

We write to you annually to set out the minimum monthly repayment required in the following year.  This is for information, and you can request to reduce your repayment to the minimum repayment, or any repayment level above that.

If you have lodged a significant sum, you can ask us to recalculate your minimum repayment after the lodgement, and then ask us to reduce your repayment accordingly. 

You can make withdrawals as often as you like, subject to remaining within your Agreed Facility limit.

You need to have up to date life cover on your mortgage.  Where we do not hold evidence of this, we will contact you to ask you to supply it, and this may delay the draw down of the requested amount.

You must be up to date with your repayments and not have arrears on your mortgage.

Where the amount requested is greater than €50,000, we may ask you for some additional information.  This helps us to sign-post you towards help if you are exhibiting signs of financial stress.

You can request any amount subject to your new balance, after the withdrawal, not being more than your Agreed Facility limit.

You are required at all times to hold a life assurance policy for, in the event of your death, a sum equal to the total amount you have outstanding on your mortgage, to be payable to Ulster Bank in the year in which your death occurs.

Ulster Bank is leaving the market and as part of its planned withdrawal activity has made every attempt to find a solution for your Current Account Mortgage product with a full service Bank. However, as this is a unique product and not offered by any other Irish Bank, this was not possible. However, we are delighted that we have a range of solutions, as outlined below. While from 23rd May 2024 you will no longer be able to offset a linked Facility Account against your mortgage balance, you could choose to transfer to the new Flexible Mortgage product. This has a feature which allows you to draw up to an Available Facility -  you can reduce your mortgage by paying in your credit balances and goodwill payment (if you wish to) to reduce your mortgage balance, resulting in lower interest and mortgage repayments.  If you then found you wanted to you use these funds at a later date you can redraw this amount up to the available facility amount. This would allow you to replicate the key benefits of offsetting interest and your repayment, whilst still having access to your funds if you need them in future.

You will retain your tracker rate on your mortgage.  This is currently ECB+1.15%, but you should be aware that the T&Cs allow for it to be up to  a maximum rate of ECB+1.50%, so it could change in the future (it is important to note that we are not increasing your rate as part of this change but the terms and conditions  allow for a higher rate and a purchaser of this portfolio could choose to exercise this option in the future). The new Flexible Mortgage product has a maximum interest rate of ECB+1.15%

In addition to the above, Ulster Bank is now giving you 6 months’ notice that you will no longer be able to use your Facility Account (or any other current or savings account you have). We have written to all customers that hold Current Account Mortgages providing detailed information about these changes and what they will mean. ​

Yes, there are several options that you could consider:

1. You could make a permanent lump sum reduction to your mortgage

2. You could move your mortgage to the Ulster Bank Flexible Mortgage (Note:  See Q3 for further detail)

3.  You can, of course, consider whether you want to move your mortgage to an alternative provider 

The Flexible Mortgage has some features that are not available in the Current Account Mortgage,

1. You can draw funds from an Available Facility on an ongoing basis, which means that if you pay money into your mortgage, it reduces your mortgage balance and therefore your interest and repayments. You can then draw those funds back out again at a future date subject to staying within your overall Facility Limit.  This would allow you to replicate the key benefits of offsetting interest and your repayment, whilst still having access to your funds if you need them in future.

2. The Flexible Mortgage has a maximum interest rate of ECB+1.15% as outlined in the Terms & Conditions.  While you are currently charged ECB+1.15%, the rate on the Current Account Mortgage could increase to anything up to ECB+1.5% in the future (it is important to note that we are not increasing your rate as part of this change but the terms and conditions  allow for a higher rate and a purchaser of this portfolio could choose to exercise this option in the future). 

Some other benefits of the Flexible Mortgage are:

a. You can keep the features mentioned above if you ever wish to move home (subject to credit approval for the property you would be proposing to purchase).  With your Current Account Mortgage, you cannot keep your mortgage when you move home.

b. You can seek a top up to your mortgage, subject to credit approval.  You cannot do this on the Current Account Mortgage.

We are here to help you. If you need additional support, please call us on 0818 210 275 (00353 818 210 275 if calling from abroad). Our team are on hand to answer your queries and if it cannot be answered straight away we have a dedicated Customer Support team for our Current Account Mortgage customers who will call you back. 

We calculated your goodwill payment by considering how you used offsetting in the past and what you may have saved in future mortgage interest if you were to retain offsetting out to the end of your mortgage term. In calculating how you used your offsetting in the past, we have used the higher of the average offsetting  balance you have had over the past 6 years or the average offsetting balance over of the last 24 months in calculating your recent usage. 

In calculating your future mortgage interest, we have used your mortgage balance. The calculation also uses a forecast of the future interest rate that will apply to your loan.

We acknowledge that your future offsetting balance could increase and interest rate changes, are by their nature, unpredictable. To take account of this, we have doubled the payment to you subject to your goodwill payment not exceeding the full amount of future mortgage interest  you may have paid. We have also included €250 towards the cost of independent financial advice in your total goodwill payment. 

If you have not availed of offsetting to reduce your mortgage interest payments or monthly repayment, or have used it in a limited way, a minimum goodwill payment of €5,250 will be paid. 

You are free to redeem your mortgage or switch to an alternative lender at any time. The ex-gratia goodwill payment will not be affected by such a decision and you will continue to benefit from offsetting until 23rd May 2024. If you wish to consider an alternative mortgage product with another provider to suit your needs, we recommend you seek advice on this. Your ex-gratia payment includes a payment of €250 towards the cost of independent financial advice.  

Similarly, if you decide to move to the Flexible Mortgage, your ex-gratia goodwil payment will not be affected.

If you switch to an alternative interest rate with another lender, you will not be contractually entitled to go back onto a tracker interest rate in the future. Additionally, if you switch to an alternative mortgage product with another provider before 23rd May 2024, you will no longer be able to avail of offsetting. Please note that if/when we sell your mortgage it will be sold as a tracker mortgage with the Available Facility feature retained to allow you to Pay and Redraw credit balances to reduce mortgage interest repayments.  

Where there are arrears on your mortgage, the goodwill payment will be paid off any outstanding mortgage arrears balance. If the goodwill payment is greater than any outstanding arrears balance, any surplus funds, including the €250 payment towards the cost of independent financial advice, will be paid to you. It is important to note that we are giving you full value today (&doubling) even though the benefit would actually accrue over the remaining life of the mortgage

However,  in circumstances where your arrears balance is €1,000 or less, the full goodwill payment will be paid to you and not paid off the arrears balance. You will be required to bring the account back up to date in accordance with the Terms and Conditions of your loan.  

As your loan is currently in arrears, the bank has exercised its right to use the ex gratia goodwill payment to reduce or clear these arrears and to help you get back on track. If the goodwill payment is greater than your outstanding arrears balance, any surplus funds will be paid to you by cheque or into your Facility Account. Irrespective of arrears the the €250 payment towards the cost of independent financial advice will be paid directly to you. ​

However, in circumstances where your arrears balance is €1,000 or less, the full goodwill payment will be paid to you and not paid off the arrears balance. You will be required to bring the account back up to date in accordance with the Terms and Conditions of your loan.  

It is our view that this ex-gratia goodwill payment should not have tax implications. However, this should not be interpreted as tax advice as Ulster Bank cannot provide tax advice to customers on this matter. Each customer will need to consider their own unique circumstances. The tax framework in Ireland is one of self-assessment,  meaning each taxpayer must make their own assessment of taxes due and consider whether their circumstances require independent tax advice.  We ask customers to consider this in the context of their own personal tax affairs. 

We have taken a capital markets yield curve at a point in time (31st August 2023) which forecasts what wholesale interest rates will be in the future, and used this as a proxy for the future ECB rate that you may pay on your mortgage. This proxy yield curve is a prediction of what ECB base rates may be in the future, which is the reference rate for the loan.  The approach we have used is a market standard approach to estimating future interest rates. This forecast of ECB base rates is then increased by your current margin of 1.15%.

However, we recognise that actual future interest rates may not be the same as the forecast interest rate that we have assumed for your loan. To take account of this, we have doubled the base goodwill payment to you subject to your ex-gratia goodwill payment not exceeding the full amount of future mortgage interest that we have estimated you would pay over the remaining life of your mortgage based on our estimate of the future interest rate on your loan. 

If you do not cash your ex-gratia goodwill payment cheque within the six-month period, the payment will be lodged against your mortgage. If you are unable to lodge the cheque as it is currently made payable, or have any questions with regard to this payment you can call us on 0818 210 275 (00353 818 210 275 if calling from abroad).

A consistent approach has been taken across all of our customers. The ex-gratia goodwill payment calculation has taken into consideration how much each customer has used offsetting in the past and what each customer may have saved in future mortgage interest if they were to retain offsetting out to the end of their mortgage term. As this is calculated on an individual basis per customer, the amount of goodwill paid will differ across the customer base and is unique to your own personal circumstances.  

We have taken the higher of the average of your offsetting balances over the last 6 years or 24 months to reflect an increased balance in your current account over the covid period and any cyclical movement in income. If you had an overdrawn balance , the balance is set to zero for that month, to ensure you are not negatively impacted. This approach recognises that customers may have increased the balance in their current account during covid and considers any other cyclical movement in income. 

No one can predict the future with absolute certainty. We have taken a capital markets yield curve which forecasts what wholesale interest rates will be in the future, and used this as a proxy for the future ECB rate that you may pay on your mortgage. This proxy yield curve is a prediction of what ECB base rates may be in the future, which is the reference rate for the loan.  The approach we have used is a market standard approach to estimating future interest rates.

However, we recognise that actual future interest rates may not be the same as the forecast interest rate that we have assumed for your loan. To take account of this, we have doubled the base goodwill payment to you subject to your ex-gratia goodwill payment not exceeding the full amount of future mortgage interest that we have estimated you would pay over the remaining life of your mortgage based on our estimate of the future interest rate on your loan. 

Additionally you can avail of the Available Facility feature to reduce the amount of interest you pay on your mortgage loan. While this is a bit different to offsetting credit balances, you can reduce your future mortgage repayments by paying in money against your mortgage balance. You can then draw those funds back out again at a future date subject to staying within your overall Facility Limit.  This would allow you to replicate the key benefits of offsetting interest and your repayment, whilst still having access to your funds if you need them in future. 

You may want advice to help you decide whether the new Flexible Mortgage product will be suitable for your mortgage needs, given the changes we have described in our letter. The ex-gratia goodwill payment includes €250 towards the cost of independent financial advice in your total goodwill payment as you may wish to consider an alternative mortgage product with another provider. 

If you have any concerns as to the tax treatment of your goodwill payment, we recommend that you take your own tax advice. 

You can also visit the Competition and Consumer Protection Commission's website for more information on switching lenders (https://www.ccpc.ie/)*. You should be aware that tracker interest rates are no longer available on the market and if you switch to an alternative interest rate, it will not be possible for you to go back to a tracker interest rate in the future.

We will write to all Current Account Mortgage customers in January 2024 (for customers in arrears, we will write prior to February 16th) with confirmation of how the payment will be made to you. In general, if you have a Facility account in the same name(s) as your mortgage, the goodwill payment will be paid into this account. Please ensure your account remains open until at least this payment is made. If you don’t have a Facility account in the same name(s) as your mortgage, the goodwill payment will be paid to you by cheque made payable to those named on the mortgage. Please note that the cheque will expire six months after the date on the cheque, so you should lodge it as soon as possible and at the latest before it expires. If the cheque is not lodged before it expires, we will lodge the cheque against the outstanding mortgage balance.

Where there are arrears on your mortgage, the goodwill payment will be applied to reduce any outstanding mortgage arrears balance. If your goodwill payment is greater than any outstanding arrears balance, any surplus funds, as well as the €250 for independent financial advice, will be paid. However, in circumstances where your arrears balance is €1,000 or less, the full goodwill payment will be paid and will not be applied against the arrears balance. You will be required to bring the account back up to date in accordance with the Terms and Conditions of your loan. 

Please refer to www.revenue.ie* for further information on changes to various tax measures as part of Budget 2024.

You can choose to lodge a lump sum against your mortgage, and this will reduce your balance and your interest charges. However, you should be aware that if you clear your balance completely, a closure process for the mortgage will commence. This is because a mortgage is a lending product and is not designed to hold a Nil balance. You should also read the separate FAQ below on amending the level of your repayments.

The final phase of Mortgage Loan transfers to Permanent TSB took place on 15th May, we will have written  to all impacted customers within a week after the transfer has taken place to confirm its completion.  

The letter will also contain important information about the transfer of your Mortgage Loan and detail any action you may need to take.

Permanent TSB are now your point of contact for your Mortgage Loan. They will send a Welcome Letter to you within three weeks of the date of transfer providing you with further detail, including your new account details, about  the transfer of your Mortgage Loan.

For any queries you may have regarding a stage payment request that was sent into Ulster Bank, we have a dedicated team available to answer any specific questions that you have. Please email us on mortgagenotice@ulsterbank.com or call 0818 210 275 (Open Monday- Friday 9am – 5pm excluding bank holidays). If you are calling from abroad, you can get in touch with us on 00353 818210275.

If you have submitted a rate change request prior to 12th May, this will be passed to Permanent TSB for processing. Permanent TSB will see to it that your request is completed as soon as possible, and will attempt to avoid any unnecessary delays. 

Permanent TSB have a customer support hub available on their website for customers whose Mortgage Loan has transferred from Ulster Bank. This contains a Welcome Booklet and Frequently Asked Questions that provides more relevant information about the transfer of your Mortgage Loan.  

You can also contact Permanent TSB on 0818 200 120 or 061 232 717 (Open Monday- Friday 9am – 5pm)."

No, you will no longer be able to access your Mortgage Loan through the Ulster Bank Manage My Mortgage Portal. If you have any queries regarding transactions on your Mortgage Loan or need to make a change to your Mortgage Loan, please get in touch with Permanent TSB at 0818 200 120 or 061 232 717 (Open Monday- Friday 9am – 5pm).

Customers can continue to make cash or cheque lodgements to their mortgage in branch up to the 31st March 2023. After this date, you will no longer be able to pay your mortgage by cash/cheque in branch.

If you pay by cash or cheque currently, you will need to select an alternative payment method for your mortgage to ensure you can continue to make your repayments after 31st March 2023. 

If you call 0818 210 275 we can arrange for a direct debit mandate to be posted out to you. If you pay by cheque, you can continue to do so by posting your cheque to following address, Ulster Bank, Mortgage Operations, Central Park, Leopardstown, Dublin 18. Please allow sufficient time for posting before your mortgage payment is due.

Alternatively you can also call our mortgage team on 0818 210 275 to discuss other options.

No, mortgage loan offers will not be extended beyond the date stated on the loan offer document. 

Yes, Ulster Bank has a range of competitive interest rates in the market and your Mortgage Manager will be happy to discuss all rate options with you. Any change in rate will require an updated loan offer to be issued.

If you choose a fixed rate now you can continue to benefit from that fixed rate through to the date it expires. However, it is likely that Ulster Bank may have completed the transfer of your mortgage to another mortgage provider by the time your fixed rate expires.

When this happens, your new mortgage provider will communicate with you, prior to expiry of your fixed rate, to inform you of the options that will be available to you once your fixed rate expires.

Yes, you can. If you choose a new interest rate and change your mind prior to the new rate being applied to your account, you can call 0818 210 275 to cancel that rate choice and further discuss your rate options. However, if you chose a fixed rate and change your mind after the new rate has been applied to your account, a breakage cost will apply. Ulster Bank have a very competitive range of interest rates and we encourage you to choose one that best suits your needs.

If you chose a fixed rate, you would retain that rate throughout the period you chose. It is likely that Ulster Bank will have completed the transfer of your mortgage to another mortgage provider by the time your new fixed rate expires. In this scenario, prior to expiry of your fixed rate, your new rate options will be communicated to you by your new mortgage provider.

Please be assured that this announcement does not affect your legal and regulatory protections.

Where there is a future proposed change regarding the ownership of your mortgage, we will contact you prior to that to give you notification.

If you still wish to change your mind. You can call 0818 210 275 to discuss rate options.