Readers like you keep news free for everyone.

More than 5,000 readers have already pitched in to keep free access to The Journal.

For the price of one cup of coffee each week you can help keep paywalls away.

Support us today
Not now
Monday 5 June 2023 Dublin: 15°C
Mark Stedman/Photocall Ireland
# Sold
Ulster Bank sells portfolio of 3,175 mortgages to Pepper
There are 2,800 home loans and 375 buy-to-let loans included in the portfolio.

ULSTER BANK HAS agreed terms for the sale of an €800 million mortgage portfolio to Pepper Finance Corporation (Ireland) DAC.

The loan portfolio contains 3,175 non-performing mortgages, the majority of which are private dwelling homes (PDH).

The bank said the decision to sell the portfolio was “difficult” and had been taken after a period of “concentrated engagement with customers”.

“Our preference is to work with customers to find a solution that keeps them in their home while paying a mortgage that is affordable for them in the long-term. This is not possible for every customer,” it said in a statement today.

This deal is being financed by funds managed by CarVal Investors. 

The average level of arrears for the 2,800 private dwelling homes is €36,000, with an average of 28 missed payments. Among this group, 40% have been in current arrears for over seven years. 

There are 375 buy-to-let loans included in the portfolio and 90% have been in arrears for more than a year during their lifetime. The average level of arrears for these loans is €31,000, with an average of 17 missed payments. 

Ulster Bank said none of the included home loans are in alternative repayment arrangements, though there are a small number that are in personal insolvency arrangements.  

“For mortgages that are not sustainable, additional forbearance will not bring them back to a performing position and we are obliged to reduce the level of non-performing loans on our balance sheet,” the bank said. 

We take this step only as a last resort following an extensive campaign to find sustainable solutions for our customers. In fact, the portfolio has reduced since it was announced due to more customers entering a sustainable arrangement.

Ulster bank said it will be in contact with affected customers “at the appropriate time” to assist them as their loans transition to the new owner.

Your Voice
Readers Comments
This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
Leave a Comment

    Leave a commentcancel