Ulster Bank sells off performing Tracker Mortgage Portfolio

Portfolio comprises of around 47,000 customers.

Ulster Bank Ireland provided the latest update to its phased withdrawal process by entering into an agreement to sell €6bn performing tracker and linked mortgage portfolio to AIB.

Completion of this sale, which remains subject to obtaining any relevant regulatory approvals and satisfying the conditions in the mortgage sale deed, is expected to occur in Q2 2023.

Potentially impacted Ulster Bank customers mortgage products and their legal and regulatory protections will not change in any way as a consequence of this sale.

The portfolio comprises of around 47,000 customers.

The average remaining term duration is approximately 13 years.

Some 90% of the mortgages relate to private dwelling homes with 10% related to buy to let properties.

Ulster Bank Chief Executive Jane Howard said the announcement is “another significant step” in Ulster Bank’s orderly, phased withdrawal from the market. “I am pleased that AIB will be acquiring this portfolio, subject to any relevant regulatory approvals. The most important message today is to confirm to potentially impacted Ulster Bank tracker mortgage customers that their tracker mortgage product and their legal and regulatory protections do not change, as a consequence of this transaction. We want to reassure customers that they will continue to retain their tracker mortgage in line with their mortgage documentation.”