THE long-heralded closure of Ulster Bank has moved up a gear.
Permanent TSB has signed a memorandum of understanding with Ulster Bank-owner Nat West to acquire €7.6bn of non-tracker mortgages, SME loans and 25 branches.
The proposed deal could also see between 400 and 500 Ulster Bank staff transfer to Permanent TSB.
Ulster Bank told customers that no action is required by them at the moment and there is no change to their products and services at this time.
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What happens to savings and current accounts?
Deposit and current accounts are not part of the agreement.
Ulster Bank customers do not need to do anything for now, but eventually they will have to find a new provider.
Permanent TSB says it welcomes all new deposit account customers.
Ulster says customers will be given “ample time for customers to make that decision and take action”.
It added it will proactively contact customers when they need to move bank and/or close accounts.
What about the branches?
Ulster Bank says it is not closing any branches this year, and it does not anticipate closing any branches in the first half of 2022.
It said that branches will continue to play an important role.
In the second half of next year it will begin to phase out traditional counter/cash services to concentrate on in-person support to move bank and/or close accounts.
Branches moving from Ulster to PTSB include some in Cavan, Clare, Cork, Donegal, South and West Dublin, Fingal, Galway, Kildare, Louth, Mayo, Meath, Tipperary and Wexford.
What about the staff?
It is expected that about 400 to 500 Ulster Bank employees, who are wholly or mainly assigned to the retail and SME loans that are being acquired, will transfer to Permanent TSB.
I have a tracker mortgage with Ulster Bank. What about that?
Ulster Bank tracker mortgages are not part of the PTSB deal.
However, the trackers are likely to be sold.
But whoever ends up with your tracker can’t change the terms and conditions.
The performing tracker of this journalist was sold to vultures and there has been no change in terms.
Do not switch your mortgage, or you will lose the tracker.
You have to be told when it is eventually sold.
But loans and performing no-tracker mortgages are being sold now. What about these?
The bank says that personal and business customers, whose loans are intended to transfer as part of this planned deal, do not need to take any action now.
However, there is every chance your loans will be sold off if you have not cleared them by time the bank closes.
If you are running a business consider establishing a new banking relationship with a another provider.
I have other Ulster Bank products. What about them?
The bank says those with products that have not been mentioned for sale yet do not need to do anything at the moment.
It will update customers on those “as appropriate”.
The full list of 25 Ulster Bank branches included in the non-binding memorandum of understanding
Q: I have a fixed rate. Will those mortgage holders whose loans are being sold be released from their fixed rates?
A: When the non-tracker mortgages are transferred to Permanent TSB you will retain your terms and conditions. But ahead of that Ulster is not releasing fixed-rate mortgage holders from their deals.
So, if customers want to switch before their fixed rate term expires, a breakage fee would apply.
Note also that Ulster Bank has some of the lowest mortgage rates, while Permanent TSB has the highest mortgage rates for existing customers, according to consumer advocate Brendan Burgess.
He says customers should switch to a better-value lender such as Avant or AIB before their mortgage is sold, as long as paying the breaking fees makes this a viable option.
