The final loan sale for the parent of Ulster Bank RBS (Royal Bank of Scotland) is due to be completed in September 2015. The final sale of the ‘Project Aran’ non-performing loan portfolio to Cerberus in December 2014 saw the disposal of the loan book relating to property borrowings. The focus has now shifted to the Small and Medium Enterprise (SME) lending book.
Following on from this, Ulster Bank have now agreed to allow borrowers apply to refinance existing debts through a third party bank. The hope is that all offers would be submitted by February 28th 2015 with full financing to be completed by March 31st 2015.
So what does this mean for you should you wish to pursue this option?
With such a tight timeline we would advise that all borrowers should be swift and thorough in compiling and submitting their documentation. Ensure ahead of time that all of your documentation is present and correct and that all points and requests are backed up with the valid paperwork. It might seem like an obvious request but even the smallest omission can cost you valuable time. With such a short period of submission, there is unlikely to be time allocated for re-submission.
Bank of Ireland are said to be gearing up to refinance a high volume of Small Business Loans from Ulster bank ahead of this portfolio sale, in a move similar to that which occurred with the Government Credit Guarantee scheme, which has been extended to cover business whose lenders are/were leaving the Irish Market. This scheme was originally only available to new loans but the decision was made to open it up for refinancing options with the move of Danske bank among others out of the country.
The issue for borrowers hoping to opt in to this refinancing offer of Ulster Banks is of course in the short timeframe allotted for submission so organisation is key and, as always DCA Accountants are here for you should you require assistance.