Ulster Bank sets final deadline for those with new-build mortgage approval to complete drawdown

The move affects existing customers hoping to get a mortgage for a self-build home and those waiting on a builder to finish a new home they plan to buy.

Delays in completing the construction of homes are common, which means potential borrowers often need to extend the mortgage approval timeline.

The move by Ulster Bank could mean those who get approval for a mortgage after March 21 next for a new home end up missing out on drawing down their loan if there is a delay in the building work.

The change does not impact those who already have approval for a mortgage for a self-build or new home – they will be able to get a six-month extension to the loan approval offer.

The bank is closing down later this year and said it would be writing to customers shortly, giving them six months’ notice to find a new current account provider, and close their deposit accounts.

It has encouraged customers who require additional assistance to contact it for help, to get ready for, or make these changes.

The bank stopped taking on new mortgage business last October except from existing customers and still has a number of customers who have mortgage approval for self-builds and new homes that are not yet completed.

In a note to mortgage brokers, Ulster Bank said: “From March 21, 2022, Ulster Bank Ireland DAC will continue to facilitate new build mortgage applications, however the ability to have a six-month extension on the loan offer will no longer be available.”

And from March 21 Ulster Bank will no longer accept applications for self-build mortgages.

“Existing self-build applications that are at loan offer stage are not affected by this change.”

There is no change to top-up mortgage applications for home improvements or purchase-and-renovate mortgage applications.

As part of its planned closure the bank is meeting advocates for customers who might need additional assistance including those in vulnerable situations.

The meeting will outline plans for communicating current account and deposit account “choose, move and close” activity to customers, as well as the support measures it is putting in place for these customers.

It said: “Ulster Bank is due to begin writing to customers shortly, giving them six months’ notice to choose a new current/deposit account provider, move their accounts and close their current/deposit accounts.

“We also encourage customers who require additional assistance to contact us for help, to get ready for, or make these changes.”

Ulster Bank has a dedicated customer phone line for those in vulnerable situations or those who need additional assistance on 1800 656 001, open 8am to 8pm, seven days a week.

Known customers in vulnerable situations will receive calls offering support, the bank said