Finance

Ulster Bank tweaks terms of ‘offset mortgages’ as it prepares to sell €477m portfolio

4,500 customers on ‘offset mortgages’ to receive goodwill payments next year as bank moves to close accounts linked to product

Offset mortgages enables consumers to reduce their mortgage interest by using savings in a separate Ulster Bank account to offset part of the loan. Picture: Sasko Lazarov /Photocall Ireland

Ulster Bank has made moves to prepare the sale of a €477 million mortgage portfolio, amending the terms of the loans that currently permit customers to cut their interest bill by using the bank’s savings products.

The bank has informed 4,500 customers availing of its “offset mortgage” product that they will receive goodwill payments next year, which could be twice the value they could have saved from the product over its remaining period.

The move ...