{"id":1589,"date":"2018-05-10T15:36:44","date_gmt":"2018-05-10T20:36:44","guid":{"rendered":"http:\/\/irishexaminerusa.com\/wp\/?p=1589"},"modified":"2018-05-11T07:40:45","modified_gmt":"2018-05-11T12:40:45","slug":"ulster-bank-to-sell-6500-mortgages-in-arrears","status":"publish","type":"post","link":"https:\/\/irishexaminerusa.com\/wp\/?p=1589","title":{"rendered":"Ulster Bank to Sell 6,500 Mortgages in Arrears"},"content":{"rendered":"

\"\"Ulster Bank has announced it will be selling 6,500 Irish mortgages in arrears which have a face value of \u20ac1.6bn.<\/p>\n

Almost half of these, 3,600, are owner occupied-loans and another 2,900 are buy-to-let investor loans.<\/p>\n

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.<\/p>\n

It is possible that these loans will be sold to so-called “vulture funds”.<\/p>\n

Ulster Bank is reported to have set aside \u20ac119m for the loss that will be incurred by the sale.<\/p>\n

In a statement, the bank said: “This difficult decision comes a decade after the financial crisis began and the continued forbearance cannot be maintained.<\/p>\n

“Not all mortgages are sustainable and we are obliged to reduce the level of non-performing loans.”<\/p>\n

Approximately 17% of the bank’s loans are non-performing, and it is under pressure to cut this to 5% in the coming years.<\/p>\n

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