The Irish arm of Ulster Bank has agreed to sell €800 million of mortgage, to US distressed debt specialist CarVal Investors. Pepper Finance Corporation (Ireland) DAC will become the legal owner and Servicer of the mortgages, the bank has said in a statement.

The portfolio includes 2,800 owner-occupier loans with a face value of €715 million, where the average amount due in arrears stands at €36,000 and the average number of missed payments is 28 months, according to the bank. It also includes 375 buy-to-let (BTL) loans, where the average arrears amounts to €31,000 and average period of default is 17 months.

An Ulster Bank statement said “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.“

“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.”