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 rates

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

Debt help service saves 3,300 homes

Mortgage arrears cases still problem

More in this Section

Shivs and Shanks: Exhibition of improvised weapons goes on display on Spike Island

Prisons seek to ease fears over backlog of sex offenders for treatment programme

Cystic fibrosis patients call for new hospital facilities

Update: Body found in search for missing Ruth Maguire in Carlingford


Lifestyle

Video: This is how you can master Marie Kondo’s ‘life-changing’ method of tidying up

Cookbook review: The Flexible Pescatarian by Jo Pratt

How to make your garden a plastic-free zone

4 things you need to know about matcha, the form of green tea that’s getting a lot of buzz

More From The Irish Examiner