Ulster Bank agree to sell £1.4 billion mortgage portfolio to Private Equity Firm
It has recently been reported in the media that Ulster Bank have sold more than 5,000 property loans to a Private Equity firm Cerberus for a value of €1.4 billion. This sale has now brought the amount of Irish loans that have changed hands in just over two weeks to almost €5 billion, an incredible sum of money.
The influence on the mortgage market by predominantly Private Equity firms has grown rapidly in Ireland since 2011 and it will only continue to grow in the coming months and years ahead as the banks continue to sort out their balance sheets. From our perspective at GDPEE, we spend a lot of our time trying to help people navigate this new terrain, and our view is that it is vital you are fully prepared for the possibility that your own loan, may indeed be sold.
There is no doubt that Private Equity Firms still have a negative perception in Ireland and are often referred to as Vulture funds. They can be very difficult to deal with and at times can certainly be quite aggressive in their approach. However, recent statistics have shown that some are attempting to improve that reputation by now following regulatory codes, having long engagement with customers in relation to their standard financial statements and working more closely with debt solution organisations.
In light of this, Private Equity Firms would state that this is not vulture activity but rather what a bank would do. They would also reinforce the view that they in fact do deals that the banks won’t do. Recent statistics do highlight that there are massive write-down’s being done by these Private Equity Funds which is a very promising development in this ever changing landscape.
What should I do?
If you are unfortunate enough to be involved or due to be involved in a loan sale, you need to very quickly get a plan of action together to present to your new creditor. Do not wait any longer. This is too IMPORTANT an issue to ignore. Therefore, we at GDP Equity Experts would advise that you follow this checklist:
(1) Be fully prepared and have the necessary funding in place to deal with potential enforcement of loans, calls on personal guarantees and asset sales.
(2) With a Private Equity Company now taking the lead, engagement with the borrower will no longer be pedestrian in nature and difficult to make progress with. They will be in contact with you within the first couple of weeks in an effort to determine what your plans may be. Therefore, it is ESSENTIAL that you are fully prepared to engage with them.
(3) Take advice in this regard from a regulated team of debt advisors to plan for the future, and guide you through the process.
What we can do to help?
Since 2010, GDP Equity Experts have helped 100’s of families, individuals and businesses deal with debt related issues. We have been leading the way in this specific matter over the last few years and have particular expertise in dealing with private equity funds and loan sales.
We would like the opportunity to share this with you. As a result, our team are more than ready to engage and assist you if you have been affected by this or you have any other property debt related issues.
GDP Equity Experts know what is expected and how to get you to where you want to go. We WANT to hear from you today because we WANT to help you today.
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