Ulster Bank has sold off £2 billion tranche of loans to Cerberus. The portfolio consists 900 mortgages, across Ireland. Around 14% of the debt is based in Northern Ireland.
A spokesman for Ulster Bank said: “Ulster Bank has confirmed the completion of a sale of significantly impaired loan portfolio, predominantly in the Republic of Ireland, enabling the bank to strengthen its balance sheet for the benefit of its customers. The loans involved are all in Ulster Bank’s problem debt management unit and have been in arrears or under specialist management for a significant period of time. We will be in contact with all affected customers in the coming days to help them as their loans transition to their new owner.”
Ireland-wide, 65% are distressed business loans, while the remainder are buy-to-let and owner-occupier mortgages. The sale is part of the bank’s bid to clear out all remaining toxic property loans on its books on both sides of the border.