6,500 Irish mortgages in arrears to be sold by Ulster Bank

6,500 Irish mortgages in arrears to be sold by Ulster Bank

Ulster Bank has announced it will be selling 6,500 Irish mortgages in arrears which have a face value of €1.6bn.

Almost half of these, 3,600, are owner occupied-loans and another 2,900 are buy-to-let investor loans.

On average, the loans are in more than three years in arrears. Customers will not be informed that their loans are sold until a buyer has been found by the bank.

It is possible that these loans will be sold to so-called "vulture funds".

Ulster Bank is reported to have set aside €119m for the loss that will be incurred by the sale.

In a statement, the bank said: "This difficult decision comes a decade after the financial crisis began and the continued forbearance cannot be maintained.

"Not all mortgages are sustainable and we are obliged to reduce the level of non-performing loans."

Approximately 17% of the bank's loans are non-performing, and it is under pressure to cut this to 5% in the coming years.

- Digital Desk

More on this topic

ESRI: Young homeowners most at risk if ECB raises mortgage interest ratesESRI: Young homeowners most at risk if ECB raises mortgage interest rates

Govt to consider bill to keep people in mortgage arrears in their homesGovt to consider bill to keep people in mortgage arrears in their homes

Debt help service saves 3,300 homesDebt help service saves 3,300 homes

Mortgage arrears cases still problemMortgage arrears cases still problem


More in this Section

National Lottery apologises for scratchcard errorNational Lottery apologises for scratchcard error

Drugs found in washbag behind shed in CorkDrugs found in washbag behind shed in Cork

LGBTQ+ relationships should be on sex education curriculum, review saysLGBTQ+ relationships should be on sex education curriculum, review says

Woman caught with €800 worth of cannabis said it was meant to go into prisonWoman caught with €800 worth of cannabis said it was meant to go into prison


Lifestyle

Fr Brian D’Arcy was born nearEnniskillen, Co Fermanagh in 1945.A Question of Taste with Fr Brian D'Arcy

About a year ago Aitch, real name Harrison Armstrong, dropped out of school to start working with his grandfather as a labourer in Manchester.Rapper Aitch on quitting his job to pursue music full-time

A new book delves into the details of Harry Clarke’s stained glass windows in such places as Dingle and Cork, writes Marjorie Brennan.The book that delves into the details of Harry Clarke's stained glass windows

They’re the best air purifiers around so we should grow more houseplants all year round, says Peter Dowdall.Not just for December: The reason why she should grow more houseplants all year round

More From The Irish Examiner