€400m deal for former offset home loans
Dilosk CEO Fergal McGrath and COO Oran McGrath. Photo: Naoise Culhane
Irish non-bank lender Dilosk has acquired a €400m “book” of mortgages from Ulster Bank, because the UK owned lender edges in the direction of finishing its exit from the Irish market.
The ebook is of round 4,000 prime residential home loans is of former so referred to as ’off-set’ mortgages, a construction that allowed debtors to have decrease curiosity payments off-setting towards their financial savings with the financial institution.
It was among the many final parts of Ulster Bank property right here.
The offset construction made the mortgages difficult to promote till Ulster Bank unpicked these contracts over the previous yr by making a one-off cost to debtors who agreed to exit that aspect of the contract.
Dilosk DAC, which trades as Dilosk and ICS Mortgages raised €400m on the bond market earlier this yr, in a deal that heralded the revival of non-banks as gamers within the mortgage market after the sector was largely facet lined by the ECB pushed spike in rates of interest.
The mortgages acquired from Ulster Bank acquisition will probably be built-in into the prevailing ICS Mortgages business, guaranteeing continuity of service and phrases for all transferring clients, Dilosk stated.
The authorized and regulatory protections connected to those mortgages is not going to change as a consequence of this sale.
“Dilsok prioritises buyer satisfaction and is devoted to sustaining the best requirements of service,” the group stated in a press release asserting the deal.
The sale stays topic to regulatory approval and is anticipated to finish over the approaching months. Fergal McGrath, Chief Executive of Dilosk, stated the settlement was a big milestone for the lender.
“This acquisition marks a significant milestone for Dilosk and ICS Mortgages as we increase our mortgages under management to c.€2 billion”.
“ICS Mortgages is one of the oldest mortgage lending brands in the Irish market, and we pride ourselves on our profound understanding of the residential mortgage business and our insight into the needs and expectations of our customers as our business is solely focused on the mortgage business. We will be communicating to all our new customers over the coming months and ensuring that the transfer is as smooth as possible,” he stated.
