Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Sam Boal/Photocall Ireland

There's some 'good news' for Ulster Bank mortgage holders in arrears

Those who qualify for social housing can sell their homes and not be pursued for the outstanding debt.

Updated 10.17am

A MOVE BY Ulster Bank to provide leeway to mortgage holders in arrears has been welcomed as “good news”.

In a letter to homeowners, seen by RTÉ News, the bank said that if those with outstanding repayments are eligible for social housing, they can sell their homes and will not be pursued for the outstanding debt.

Alternative arrangements will be sought with those on higher incomes.

David Hall of the Irish Mortgage Holders Association has described the commitment as “good news”.

“It might very well be the fresh start people are looking for,” Hall told Morning Ireland.

He noted that those who qualify for social housing are likely to be unable to make any further mortgage repayments, and ‘have no where else to go’.

This is more about housing for that vulnerable cohort for people than it is about debt.

However, mortgage advisory group New Beginning said the new scheme must not be supported.

“This is a proposal designed to make Ulster Bank money and their customers homeless,” he claimed in a statement.

It added that this is a proposal that “might have had merit in 2009 but now lacks any understanding of where we are”.

Hall said it is “against his religion” to start a week by being complimentary about a bank, but he welcomed Ulster Bank’s efforts in this area, along with AIB and KBC.

Significant effort will be needed to coax other banks to follow suit, he said.

The Coalition is expected to announce new measures in this week’s Spring Statement to combat the mortgage crisis. “Something substantial is going to happened,” Hall predicted.

Read: ‘We’ll cut them again in a month or two’ – AIB chief on mortgage rates >

Poll: Should the government bail out mortgage holders who are in arrears? >

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Close
46 Comments
    Install the app to use these features.
    Mute David Healion
    Favourite David Healion
    Report
    Apr 27th 2015, 8:46 AM

    Interested to see the uptake. They could do with cutting their variable rates further to help cash strapped people who have been doing without to ensure their mortgage gets paid every month.

    109
    Install the app to use these features.
    Mute Peter Grimes
    Favourite Peter Grimes
    Report
    Apr 27th 2015, 9:49 AM

    To qualify for social housing, you have to practically living in a tent, after Phil Hogan raised the bar to qualify for social housing, and knocked thousands of the waiting list, some on the list for 10 years or more, this was raised in the Dail by Catherine Murphy, but since has been overshadowed by the IBRC and other scandals been raised in the Dail.

    44
    Install the app to use these features.
    Mute Peter Grimes
    Favourite Peter Grimes
    Report
    Apr 27th 2015, 10:12 AM

    Why would someone red tumb my comment, is the truth hurting FG so much, it just gives you an insight into what is coming down the track if they get back into government.

    19
    See 1 more reply ▾
    Install the app to use these features.
    Mute Paul Roche
    Favourite Paul Roche
    Report
    Apr 27th 2015, 10:56 AM

    Eliminating negative equity is a no-brainer. But it is debt forgiveness.
    I suspect this is a market share grab from Ulster Bank, because for AIB, BOI or the Permo to follow would mean self destruction.

    17
    Install the app to use these features.
    Mute Cillan32
    Favourite Cillan32
    Report
    Apr 27th 2015, 8:51 AM

    What social housing ?….. Isn’t there a huge waiting list ?

    92
    Install the app to use these features.
    Mute Denis O Brien
    Favourite Denis O Brien
    Report
    Apr 27th 2015, 9:21 AM

    you don’t need to be in social housing for this offer. just an acceptance that you will go into social housing.

    32
    Install the app to use these features.
    Mute Suzie Sunsine
    Favourite Suzie Sunsine
    Report
    Apr 27th 2015, 9:29 AM

    See, that was my first thought too , the waiting list is huge for social housing , so if you do manage to sell your home what then ? It’s not as if there is going to be another house waiting for you to move into . emergency accommodation ?

    31
    See 3 more replies ▾
    Install the app to use these features.
    Mute Scarr
    Favourite Scarr
    Report
    Apr 27th 2015, 9:29 AM

    Denis – true, but the point being the distinct lack of available social housing. So ppl sell their home; then what? Waiting list for x years?
    I see it as a positive step towards finally tackling the issue, but there are details still needed.

    19
    Install the app to use these features.
    Mute Peter Grimes
    Favourite Peter Grimes
    Report
    Apr 27th 2015, 10:59 AM

    Denis
    To be excepted for consideration for social housing, your only outgoings taking into consideration is PRSI, USC, TAX, the rent your paying, your loans Credit Union, etc are not taking into consideration, they use to be until Phil Hogan decided to reduce the housing list without actually providing housing, and in doing so knocked thousands of the waiting list,

    http://www.environ.ie/en/Publications/DevelopmentandHousing/Housing/FileDownLoad,29414,en.pdf

    10
    Install the app to use these features.
    Mute Peter Grimes
    Favourite Peter Grimes
    Report
    Apr 27th 2015, 11:06 AM

    Sorry
    I don’t think the above link is active.

    6
    Install the app to use these features.
    Mute Jo Joyce
    Favourite Jo Joyce
    Report
    Apr 27th 2015, 8:54 AM

    One problem, there are no social houses available and no suitable homes to rent within rent supplement cap. If people sell their homes then there is a huge chance they will be homeless. Go back to the drawing board!!!

    57
    Install the app to use these features.
    Mute Kal Ipers
    Favourite Kal Ipers
    Report
    Apr 27th 2015, 10:55 AM

    Should the bank be paying for somebody’s rent? If you don’t think they should then how can you justify them letting them subsidise their mortgage?
    The government are responsible for social housing and the fact the bank is letting people walk away from debt is nice enough of them. They could insist the people become bankrupt like they actually are.

    10
    Install the app to use these features.
    Mute John Donagher
    Favourite John Donagher
    Report
    Apr 27th 2015, 1:49 PM

    Or you just pay rent for staying in your home until a house becomes available

    6
    Install the app to use these features.
    Mute Eddie Grady Grady
    Favourite Eddie Grady Grady
    Report
    Apr 27th 2015, 8:45 AM

    And if a person paid over ten years on a mortgage and now go on to social housing how degrading is this the banks only want people out of there homes cause they are making a loss..

    37
    Install the app to use these features.
    Mute TotalScrotal
    Favourite TotalScrotal
    Report
    Apr 27th 2015, 8:54 AM

    Degrading? What about all the people who can’t ever hope to own a house because people who are chancing their arm by not paying their mortgage. You do not own the house until it’s paid for,you signed up for it,you are an adult.

    It’s time for the silent majority who work hard to pay their way to make their voices heard, I’ve had enough of people like David Hall using emotionally loaded terms such as “family home” to advocate for people to have their cake and eat it ( keep house AND not pay mortgage.
    I’m all for debt deals if assets are forfeited

    96
    Install the app to use these features.
    Mute CorkBoi
    Favourite CorkBoi
    Report
    Apr 27th 2015, 9:05 AM

    You’ve brought me to tears ,yeah bollox .

    21
    See 9 more replies ▾
    Install the app to use these features.
    Mute Scarr
    Favourite Scarr
    Report
    Apr 27th 2015, 9:07 AM

    Total – what you want us what is happening here. Those with an income that meets the social housing threshold (43k for a couple) sell their home and are not pursued for the debt. Presumably that couple will be housed in rented accom and or placed on the housing list.

    14
    Install the app to use these features.
    Mute William Boyd
    Favourite William Boyd
    Report
    Apr 27th 2015, 9:25 AM

    Total, how many are chancing their arm compared to people who are making an effort to meet some of the monthly mortgage repayment but unable to meet the full amount because of circumstances beyond their control?, do you distinguish between the two or would you like the whole sorry lot dumped on the street just because you were fortunate enough to not find yourself in a financial straight jacket?.

    13
    Install the app to use these features.
    Mute Tiffany Mary O'Brien
    Favourite Tiffany Mary O'Brien
    Report
    Apr 27th 2015, 9:45 AM

    It suits his ‘conspiracy’ theory that there is 10′s of thousands of strategic defaulters not paying their mortgages in 2015 .. Boring repetitive drivel ..

    12
    Install the app to use these features.
    Mute William Boyd
    Favourite William Boyd
    Report
    Apr 27th 2015, 9:50 AM

    Exactly Tiffany but whats galling many actually agree with him/her hence all the green thumbs.

    12
    Install the app to use these features.
    Mute Thomas Mac
    Favourite Thomas Mac
    Report
    Apr 27th 2015, 10:00 AM

    And I’m all for people staying in ‘their’ homes if bank is agreeable to a deal .
    Wouldn’t worry about the green thumbs or the red ones,William .
    Well said,Tiffany ..It is boring in this very article .

    11
    Install the app to use these features.
    Mute Suzie Sunsine
    Favourite Suzie Sunsine
    Report
    Apr 27th 2015, 10:29 AM

    I don’t know why he is being slated for what he said. The is deal is for people who have not communicated or refuse to engage with the banks . that to me means that some of them are in fact just chancing their arm .

    14
    Install the app to use these features.
    Mute William Boyd
    Favourite William Boyd
    Report
    Apr 27th 2015, 10:49 AM

    He still didn’t answer my question Suzie, does he distinguish between the deliberate defaulters or the genuine people who purchased a family home before their circumstances changed drastically but are still making payments albeit not the full amount?.

    These are the people the banks and courts should be helping out, not the ones who haven’t bothered their backsides to make any payments even though they can afford a certain amount each month.

    6
    Install the app to use these features.
    Mute OggieThe4th
    Favourite OggieThe4th
    Report
    Apr 27th 2015, 11:19 AM

    He wants any defaulter not paying their mortgage out on the side of the road -that is my take from his post(s) .As long as they don’t get to keep the asset -say’s it all

    5
    Install the app to use these features.
    Mute Thomas Mac
    Favourite Thomas Mac
    Report
    Apr 27th 2015, 11:46 AM

    Well Oggie,he better then start ringing up the CEO of AIB ,so.
    He’s been doing debt write-downs the past year or so ,with the homeowner keeping the ownership of their home ..

    2
    Install the app to use these features.
    Mute ColindeB
    Favourite ColindeB
    Report
    Apr 27th 2015, 10:18 AM

    Slightly devious attempt by UB to flush out strategic defaulters.

    75% of defaulters are in employment so they won’t qualify for social housing and this deal won’t apply to them. What it will do is pull away the mask from the “famine”, “you’ll make us homeless” folk who can afford to pay but choose to hide behind those who cant’.

    24
    Install the app to use these features.
    Mute Paul Roche
    Favourite Paul Roche
    Report
    Apr 27th 2015, 10:59 AM

    Yes,
    And they are doing it very cleverly.
    It puts the “won’t pays” into a completely separate category from the “can’t pays”.

    12
    Install the app to use these features.
    Mute ColindeB
    Favourite ColindeB
    Report
    Apr 27th 2015, 11:08 AM

    About time, we’ll never resolve this (and the high SVR’s) until we get a handle on the strategic defaulters.

    There are 2000 customers of AIB so brazen in their deliberate defaulting that they have more than the amount of arrears stashed in deposit accounts in the same bank.
    At least have the sense to hide your ill-gotten gains in a different bank!
    It’s almost certainly the same picture with the other banks, including UB.

    10
    See 1 more reply ▾
    Install the app to use these features.
    Mute ColindeB
    Favourite ColindeB
    Report
    Apr 27th 2015, 2:50 PM

    Links btw
    “He said 2,000 customers in arrears have deposits greater than the amount of the arrears.”
    http://www.rte.ie/news/2013/0903/471840-aib-oireachtas-committee/

    “75% of borrowers in arrears are in employment” – Brendan Burgess article in SBP
    http://i.imgur.com/x5m1gvL.jpg

    1
    Install the app to use these features.
    Mute CorkBoi
    Favourite CorkBoi
    Report
    Apr 27th 2015, 9:08 AM

    That will save them on costly court cases ,boi .

    20
    Install the app to use these features.
    Mute Adrienne Lyons
    Favourite Adrienne Lyons
    Report
    Apr 27th 2015, 9:12 AM

    Where are these social houses coming from?

    19
    Install the app to use these features.
    Mute whynotme
    Favourite whynotme
    Report
    Apr 27th 2015, 9:22 AM

    Wow! This is fantastic news for those in trouble with their mortgages ,and it might even make the ridiculous Insolvency System start to work ..

    19
    Install the app to use these features.
    Mute John Wheelwright
    Favourite John Wheelwright
    Report
    Apr 27th 2015, 10:25 AM

    “…..not be pursued for the outstanding debt”
    Wait a minute……….I have to clarify something here.
    The banks create credit (loans) out of thin air with a few simple keystrokes on a keyboard (legalised fraud) then they charge the populous compounded interest (interest on top of interest) then they crash the whole economy due to their ignorance and greed then the tax payer bails them out and you think they are doing us a favour?
    Really?

    http://www.sciencedirect.com/science/article/pii/S1057521914001070
    http://www.nationaldebtclocks.org/debtclock/ireland

    18
    Install the app to use these features.
    Mute Kal Ipers
    Favourite Kal Ipers
    Report
    Apr 27th 2015, 11:13 AM

    That is taking pieces of information and forcing them together will a particular slant. Banks that gave mortgages borrowed the money from Europe. Now you can argue then it was created from thin air if you want but it wasn’t really either.
    It doesn’t matter the person who borrowed made a commitment to pay for the money they did get. It wasn’t fake or magic money. If they don’t pay it back should they get to keep the property?

    9
    Install the app to use these features.
    Mute Alexander of Dublin
    Favourite Alexander of Dublin
    Report
    Apr 27th 2015, 10:16 AM

    Good news from Ulster Bank. From the bank which is pretty much owned by the British taxpayer. When will our own banks that we, as Irish taxpayers own, follow suit? It’s a sad state when a foreign owned bank has more of a social conscience than our own.

    15
    Install the app to use these features.
    Mute William Boyd
    Favourite William Boyd
    Report
    Apr 27th 2015, 10:21 AM

    Whisper it Alexander you’re not allowed have a conscience in Ireland 2015.

    8
    Install the app to use these features.
    Mute OggieThe4th
    Favourite OggieThe4th
    Report
    Apr 27th 2015, 9:17 AM

    Well done Mr Brown on finally finding the place called reality .

    12
    Install the app to use these features.
    Mute Scarlett Van Tassel
    Favourite Scarlett Van Tassel
    Report
    Apr 27th 2015, 10:05 AM

    Good idea…except for the lack of adequate social housing, both in quality and quantity. Baby steps, lads, baby steps.

    6
    Install the app to use these features.
    Mute Neuville-Kepler62F
    Favourite Neuville-Kepler62F
    Report
    Apr 27th 2015, 3:43 PM

    If you have a Gun
    You can Rob a Bank
    If you have a Bank
    You can Rob Everyone…

    5
    Install the app to use these features.
    Mute Neal Ireland Hello
    Favourite Neal Ireland Hello
    Report
    Apr 27th 2015, 1:46 PM

    This would be an interesting idea in some parallel universe where there’s enough extra social housing coming on stream.

    3
    Install the app to use these features.
    Mute Mccart Wisdom
    Favourite Mccart Wisdom
    Report
    Apr 28th 2015, 1:01 AM

    BE SMART AND BECOME RICH IN LESS THAN 3DAYS….It all depends on how fast you can be to get the new PROGRAMMED blank ATM card that is capable of hacking into any ATM machine,anywhere in the world. I got to know about this BLANK ATM CARD when I was searching for job online about a month ago..It has really changed my life for good and now I can say I’m rich and I can never be poor again. The least money I get in a day with it is about $2,000.(two thousand USD) Every now and then I keeping pumping money into my account. Though is illegal,there is no risk of being caught ,because it has been programmed in such a way that it is not traceable,it also has a technique that makes it impossible for the CCTVs to detect you..For details on how to get yours today, email the hackers on : (atmmachinehackes @ gmail.com). Tell your loved once too, and start to live large. That’s the simple testimony of how my life changed for good…Love you all …the email address again is atmmachinehackes@gmail.com

    1
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.
JournalTv
News in 60 seconds