My loan or mortgage has been sold. What do I need to know?


In recent years, loan book sales and transfers have become more common. But what does this mean for you?  

  • Does it affect the loan rate, terms or amount owed?  
  • What happens when my mortgage is sold?

We will discuss what you need to know and what you can expect if your loan or mortgage is sold to another lender. By the end of this blog, you will better understand what to expect and how you can seek advice or support for any questions you may have! 


KBC and Ulster Bank Customers 

If you’re a KBC or Ulster Bank customer, you may have been notified that your loan or mortgage will be sold to another lender. For KBC mortgages and loans, these will be transferred to Bank of Ireland. For Ulster Bank customers, this could be PTSB or AIB.  

If you’re a KBC or Ulster Bank customer, you may have already set up your new bank account with a different bank. Please note – this won’t affect where your loan or mortgage is transferring to, but you will need to update which account your direct debit comes from.  

If you are a KBC or Ulster Bank customer, we also have a blog on Switching Your Bank Account and Opening a Bank Account. 


Transferring the Loan – What actually happens? 

First, your outgoing loan owner – the original lenderwill send you a “Goodbye” letter immediately. This is sent before your loan will transfer to the new loan owner.  

Your new loan owner must then send you a “Hello” letter. This will give details of who has bought your loan. It will confirm two things: 

  1. The loan which they have taken ownership of; and 
  1. The mortgaged property. 

The “Hello” letter will provide you with the new loan owner’s contact details if you need to get in touch. 


If your personal loan has been sold 

Personal loans include any specified loans, such as a car loan that might be secured against the car, or a home improvement loan. 

Personal loans will transfer to your new lending provider with the existing terms and conditions. Once you receive your “Hello” letter, contact your new lender to set up your direct debit to pay the loan.  

If your mortgage has been sold

Mortgages will be transferred by your current provider, and your existing terms and conditions will carry with the transfer. If you are currently on: 

  • A fixed-rate contract, the rate will be honoured until the end of the fixed period. 
  • A tracker interest rate, this will be transferred to your new mortgage provider.  
  • Variable rate, or out of a fixed period and not on a tracker, it might be a good opportunity to switch your mortgage. You might be able to get a better interest rate and save some money. 

Once you receive your “Hello” letter, contact your new lender to set up your direct debit to pay the mortgage. 

If you are in arrears on your home mortgage and your mortgage is sold – you may be eligible for Abhaile. Check out our Abhaile blog on home loan sales and what to expect. 


Where can I get additional support? 

Understanding this process and what is involved can be difficult. That is where our team of advisers can help you.  

Your local MABS is here to help, reach out and let’s get the conversation started.  

If you are facing mortgage arrears, you can also visit Abhaile to discover our free mortgage arrears support and to learn about our services available that can help tackle your mortgage debt.  

Would you like some one-to-one free and non-judgmental support? Call the MABS National Helpline on 0818 07 2000 Monday to Friday, from 9am to 8pm. Text an adviser on WhatsApp 086 035 3141 or request a callback if you want to talk confidentially about mortgage debt or general financial matters.