The bank is giving customers just 90 days notice of the sale
The Irish subsidiary of Royal Bank of Scotland (RBS) Ulster Bank is to sell 5,200 of its ‘non-performing’ mortgages – worth €1.4 billion – to vulture fund Cerberus Capital Management LP.
The bank said it does not contain any performing home loans or any home loans that are currently in an arrangement.
A number of buy-to-let mortgages in the bundle are in an arrangement with the bank but were deemed unsustainable by Ulster Bank.
It said there are 2,300 primary dwelling houses (PDHs) – homes – in the portfolio with an average arrears of €615,000 and an average of three forbearance arrangements with the bank.
There are also 2,900 buy-to-let mortgages in the portfolio with average arrears of €32,000 and an average of four forbearance arrangements.
The bank is giving customers 90 days notice of the sale to Cerberus Capital Management LP.
Ulster Bank said it made the “difficult decision” a decade after the financial crisis began and the continued extension of forbearance cannot be maintained.
“We will be in contact with all affected customers to help them as their loans transition to the new owner.”
Another Irish lender, Permanent TSB, recently sold 7,400 home mortgages and 3,300 buy-to-let loans to another vulture fund, Lone Star.
David Hall CEO of Irish Mortgage Holders Organisation said said Ireland’s banks, politicians and Central Bank must be honest and “admit this is about people who can’t pay”.
“The Ulster Bank data shows that, by confirming engagement by customers and (their) attempts to pay.”
You may also be interested in:
http://35.176.73.46/death-travellers-rights-nan-joyce/
