10,000 Ulster Bank tracker mortgages yet to transfer to AIB

Ulster Bank tracker mortgages: Following a sale of the mortgages in the summer, it has come to light that thousands of tracker mortgages have not yet been transferred to AIB.

They have now been informed that giving up the trackers and locking in fixed rates will cost them extra.

Ulster Bank transferred approximately 33,000 tracker mortgage accounts to AIB in July.

However, it has since come to light that 10,000 additional tracker mortgages are still held by Ulster Bank and have not yet been transferred to AIB.

According to AIB, “It was always intended that those customer accounts would transfer at a later date.” About 10,000 customer accounts have not yet transferred.

On its remaining fixed-rate packages, Ulster Bank announced a 0.75 percentage point rate rise yesterday.

The four-year fixed-rate green mortgage as well as the two and four-year fixed-rate mortgages will all be subject to the new rates. The selling of the seven-year fixed rate will end. These modifications are effective right now.

After ten rate increases by the European Central Bank (ECB), tracker mortgages have skyrocketed in price.

Following the agreement of the €5.7 billion deal, there have been issues with the transfer of the Ulster Bank mortgages to AIB.

Earlier this month, AIB was compelled to grant a four-month reprieve on the most recent ECB interest rate increase to thousands of tracker mortgage customers who switched to it from Ulster Bank.

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10,000 Ulster Bank tracker mortgages yet to transfer to AIB

The rate increase freeze, according to the bank, will benefit the approximately 33,000 tracker mortgage accounts that were transferred from Ulster Bank to AIB in July.

Additionally, AIB has experienced difficulties collecting mortgage payments from former Ulster Bank clients.

The bank was compelled to make a U-turn last month, which led to the rate-rise freeze. Several former Ulster Bank tracker clients received letters from it informing them that their monthly repayments would need to increase by up to €600 per month.

The Irish Independent was the first to exclusively learn that it retracted the letter and apologised for the error.

Later, it was discovered that a few former Ulster Bank tracker clients had their direct debits terminated. Mortgage payments were the purpose of these direct debits.

In response to “the confusion and concern that may have been caused for these customers by a letter they received last month,” AIB said the four-month postponement was granted.

Following the ECB’s most recent rate hike in July, higher payments that were scheduled to begin from next month will now not begin until February of the following year. AIB will lose several million euros because of the choice.

The four-month suspension will result in lower monthly payments for homeowners with the impacted tracker mortgages. Depending on the balance owed and the length of the mortgage, these savings may total a certain amount.

The savings would be roughly €14 per month, or €56 overall, for someone with about 10 years left on their mortgage and a debt of around €120,000. ​

According to AIB, there won’t be any fees or clawbacks on consumer payments for these deferrals.