The news was announced on Monday.
Ulster Bank has announced that it is to sell 5,200 non-performing mortgages to a purchaser managed by affiliates of Cerberus Capital Management L.P.
Cerberus Capital Management, L.P. is an American private equity firm, specialising in "distressed investing", or what are sometimes referred to as vulture funds.
The portfolio of loans includes around 2,300 mortgages relating to private homes and around 2,900 mortgages covering buy-to-let properties.
Ulster Bank has said that none of the home loans involved are in a restructuring arrangement with the bank.
Speaking to JOE, an Ulster Bank spokesperson said: "Ulster Bank can now confirm that it has agreed terms for the sale of a portfolio of non-performing mortgages of c€1.4bn, as announced for sale in May to a purchaser managed by affiliates of Cerberus Capital Management L.P. This portfolio does not contain any performing home loans or any home loans in an arrangement.
"This difficult decision comes a decade after the financial crisis began and the continued extension of forbearance cannot be maintained. Not all mortgages are sustainable and we are obliged to reduce the level of non-performing loans on our balance sheet. For mortgages that are not sustainable, additional forbearance will not bring them back to a performing position.
"We will be in contact with all affected customers to help them as their loans transition to the new owner."
Around €740 million of the €1.4 billion portfolio relates to Buy To Let properties. On average, Ulster Bank say that these mortgages have been in arrears for 34 months with the average arrears being €32,000.
The rest of the portfolio (€615 million) is made up of private dwelling home loans, which on average, have been in arrears 84 months with the average arrears being €61,000.
Ulster Bank has said that affected customers will be notified by the bank and will be given 90 days notice.
A customer helpline has been established and those affected can get in contact on 1800 435 763.
