Natwest considering closing Ulster Bank in the ROI

Timing belt

muddle84 wrote: »

Will this be the same for mortgages and credit cards also? X-number of months to move mortgages and credit card?

There would be no need to move mortgage as these would be sold on and all that would change is that someone else owns them.

Aint Eazy Being Cheezy

Timing belt wrote: »

There would be no need to move mortgage as these would be sold on and all that would change is that someone else owns them.

And credit cards?

JTMan

Aint Eazy Being Cheezy wrote: »

And credit cards?

You will need to open a new credit card with a different provider.

You will be given X months to get your balance down to zero or to transfer it to your new provider.

JTMan

Irish Times reporting here that staff inside Ulster Bank are now being asked to sign NDA agreements to prevent them disclosing what they are working on i.e. work on the likely wind-down.

The article also repeats the speculation again that the announcement will be made on 19 February.

Jakey Rolling

I will miss online management of mortgage rates - something UB just introduced in the last 2 years.
Just login in, check what rates available and click to transfer.

Beats trying to get info on the latest rates, writing to the mortgage centre, visiting branch to sign off etc.

Any of the other banks make it this easy?

silver2020

my own feeling is they will stay in some capacity - possibly as a mortgage bank with a single branch as its one of the least time consuming areas and one of the profitable areas too (excluding legacy issues) as it does not need much day to day management.

Business accounts and business lending looks likely to be moved as a block into PTSB (or so the reports said)

Current accounts are costly to manage and credit card management is time consuming, so both of those areas will be closed and you'll get 6 months to transfer to another bank.

Timing belt

silver2020 wrote: »

my own feeling is they will stay in some capacity - possibly as a mortgage bank with a single branch as its one of the least time consuming areas and one of the profitable areas too (excluding legacy issues) as it does not need much day to day management.

Business accounts and business lending looks likely to be moved as a block into PTSB (or so the reports said)

Current accounts are costly to manage and credit card management is time consuming, so both of those areas will be closed and you'll get 6 months to transfer to another bank.

Keeping the mortgage book wouldn't release much capital.... My guess is that they want to get the hands on the capital to invest into Natwest and improve it's online platform whether they do this by acquiring a fintech company or build it the themselves. It is what is required to ensure that the Natwest remains competitive going forward.

silver2020

Timing belt wrote: »

Keeping the mortgage book wouldn't release much capital.... My guess is that they want to get the hands on the capital to invest into Natwest and improve it's online platform whether they do this by acquiring a fintech company or build it the themselves. It is what is required to ensure that the Natwest remains competitive going forward.

I don't think capital is the issue. Its the return on investment. the mortgage book is very profitable and they have a very strong mortgage brand but the branch and staff costs pull everything down and means the net profit simply isn't there.

Mortgage margins are very good here and they take account of the extra capital reserves (the amount of reserves will drop at some stage), so it would be worth their while.

Timing belt

silver2020 wrote: »

I don't think capital is the issue. Its the return on investment. the mortgage book is very profitable and they have a very strong mortgage brand but the branch and staff costs pull everything down and means the net profit simply isn't there.

Mortgage margins are very good here and they take account of the extra capital reserves (the amount of reserves will drop at some stage), so it would be worth their while.

But if they did that they still need all the back office and support functions which is where the real costs exists. The branch costs are a drop in the ocean compared to the back office and support costs. Plus as I said in my previous post they need to update there UK offering to remain competitive and need money to do so... getting rid of Ulster gives them this.

Daragh1980

The customer service seems to vary. My brother has dealt with their Business Banking Centre in Dublin for last 15 years and has nothing but praise. Relationship Manager available at the end of the phone, any issues are sorted quickly and any lending requests dealt with professionally. He had to get a couple of payment holidays last year due to Covid and it was seamless, all done by email. I think he has been dealing with the same guy all through that time which helps.

Whereas I just have personal account and it can be hit and miss in the branch. Sometimes you really have to chase to get stuff done.

TempAc

Daragh1980 wrote: »

Whereas I just have personal account and it can be hit and miss in the branch. Sometimes you really have to chase to get stuff done.

I genuinely wonder about this, as someone who hasn't set foot in a branch in relation to a personal account in about 7 years, why on earth do people need to constantly go into branches for when it comes to current accounts?

That said, when I was an Ulster Bank customer I was regularly in the branch in relation to them making mistakes with my account. I guess it's just some banks?

Daragh1980

TempAc wrote: »

I genuinely wonder about this, as someone who hasn't set foot in a branch in relation to a personal account in about 7 years, why on earth do people need to constantly go into branches for when it comes to current accounts?

Go there to make cheque lodgments usually - that’s how I get paid.

Daragh1980

Daragh1980 wrote: »

Go there to make cheque lodgments usually - that’s how I get paid.

Do you mind if I ask if that is your preference or the company's. Some strange practices have continued like employees not accepting payslips by email.

If it's your employer's preference you need to tell them to enter the 21st century. A joke expecting employees to get paid by cheque.

Yyhhuuu

I have a regular saver paying 0.85% which is one if not the highest rare. I hope I dont have to close it. Can say I was ever impressed with the staff in Ulster bank.

Daragh1980

[Deleted User] wrote: »

Do you mind if I ask if that is your preference or the company's. Some strange practices have continued like employees not accepting payslips by email.

If it's your employer's preference you need to tell them to enter the 21st century. A joke expecting employees to get paid by cheque.

Employer’s insistence. He won’t use internet banking - he is with AIB. Up to 2018, he paid people in cash (in an envelope every week). Now it’s a monthly cheque. I use the lodgment machines normally.

Daragh1980

Daragh1980 wrote: »

Employer’s insistence. He won’t use internet banking - he is with AIB. Up to 2018, he paid people in cash (in an envelope every week). Now it’s a monthly cheque. I use the lodgment machines normally.

FFS. It must take a few extra days to clear as well. Bloody dinosaur. Your cheque will clear quickest if actually the same branch as your employer, second best is another AIB branch.

Geuze

TempAc wrote: »

I genuinely wonder about this, as someone who hasn't set foot in a branch in relation to a personal account in about 7 years, why on earth do people need to constantly go into branches for when it comes to current accounts?

I visit a bank maybe four times a year, usually to lodge cheques.


I read that traffic into bank branches has fallen sharply.

Geuze

Geuze wrote: »

I visit a bank maybe four times a year, usually to lodge cheques.

And even that is self service

The J Stands for Jay

Jakey Rolling wrote: »

I will miss online management of mortgage rates - something UB just introduced in the last 2 years.
Just login in, check what rates available and click to transfer.

Beats trying to get info on the latest rates, writing to the mortgage centre, visiting branch to sign off etc.

Any of the other banks make it this easy?

I've never heard of that. It sounds great and is the way all banks should work.

Quackster

JTMan wrote: »

You will need to open a new credit card with a different provider.

You will be given X months to get your balance down to zero or to transfer it to your new provider.

The Ulster credit card business would be an attractive acquisition and therefore will likely be sold on to another company. No need for customers to switch credit cards unless they want to.

Quackster

Daragh1980 wrote: »

Employer’s insistence. He won’t use internet banking - he is with AIB. Up to 2018, he paid people in cash (in an envelope every week). Now it’s a monthly cheque. I use the lodgment machines normally.

When I used to be an Ulster Bank customer, for a few years my employer paid me by cheque. I just kept a bundle of lodgement envelopes at home and dropped the cheque in the branch's postbox in the evening and it was lodged the next working day.

Daragh1980

[Deleted User] wrote: »

FFS. It must take a few extra days to clear as well. Bloody dinosaur. Your cheque will clear quickest if actually the same branch as your employer, second best is another AIB branch.

If I lodge on Monday, I can draw against it on Wednesday. In UB the cheque is cleared for value in 2 days but can still come back unpaid up to a few days later. Thankfully that hasn’t happened yet.

The odd time I might lodge via the letter box. I pass my the branch on way to work so it’s not major hardship to call in but yeah, electronic payment would be more convenient

JTMan

Sunday Times reports here (paywall):

- Ulster Bank expected to shortly announce a “managed exit” from the Republic.
- More than €20 billion of cash will need to find a new bank. Other banks don't want the cash. This could trigger negative interest rates to discourage large retail balances from Ulster Bank customers.

The J Stands for Jay

Timing belt wrote: »

But if they did that they still need all the back office and support functions which is where the real costs exists. The branch costs are a drop in the ocean compared to the back office and support costs. Plus as I said in my previous post they need to update there UK offering to remain competitive and need money to do so... getting rid of Ulster gives them this.

They could still service it from Belfast. Where is it currently serviced from?

High Fidelity

Hi all,

Looking for some advice?

In the process of moving house, we have a an existing mortgage on our current property with UB we will be paying of as part of the move, we are buying a new place and the mortgage we have arranged is with Ub as well - we are getting concerned that when it comes to draw down of our new mortgage, UB might say to us that aren't taking on the business they have agreed to at this point and the whole deal may break down - we're at the point that everything has been agreed with the bank bar signing contracts and draw down?

Should we start looking for a new mortgage from another provider, or will UB still be doing new mortgage business during its wind up? We are hoping to draw down in the next month to six week?

Thanks in advance for any advice?

JTMan

Impossible to know for certain what Ulster Bank will do with customers who have approval in principal but have not drawn down.

However, there is a risk that Ulster Bank will not allow you proceed to draw down.

To cover this risk, why not apply to another bank, to cover yourself. Avant Mortgages offer a lower rate of 1.95% which is available via a broker.

silver2020

High Fidelity wrote: »

Hi all,

Looking for some advice?

In the process of moving house, we have a an existing mortgage on our current property with UB we will be paying of as part of the move, we are buying a new place and the mortgage we have arranged is with Ub as well - we are getting concerned that when it comes to draw down of our new mortgage, UB might say to us that aren't taking on the business they have agreed to at this point and the whole deal may break down - we're at the point that everything has been agreed with the bank bar signing contracts and draw down?

Should we start looking for a new mortgage from another provider, or will UB still be doing new mortgage business during its wind up? We are hoping to draw down in the next month to six week?

Thanks in advance for any advice?

You won't have any problems.

Worst case is you will have some other company managing your mortgage but with the full terms and conditions of the UB mortgage.

And there is talk that UB will keep their mortgage unit as most of the back office work is done in Belfast and it would need a skeleton staff here.

But there's no harm in talking to another provider and having an application in the wings. And they will fully understand your predicament.

Timing belt

McGaggs wrote: »

They could still service it from Belfast. Where is it currently serviced from?

I thought Ulster bank NI is part of the Natwest legal entity now and if they were to operate it they would need to open an Irish branch which they would not be allowed do under UK Ring-fencing legislation. The only other alternatives would be for of the non-ring fenced Bank to open a branch and run it.

JTMan

silver2020 wrote: »

You won't have any problems.

The poster will not have any problems with the existing mortgage but could easily have problems with the new draw down.

Szero

Any chance the closure of Ulster Bank will get announced this week (maybe Friday?) rather than waiting for the results next week?