The lender, which operates in Northern Ireland and the Republic of Ireland, will seek to engage with borrowers in the latter.

It said many homeowners in arrears of 90 days or more could be helped if they discussed their options with the bank.

The bank said it would outline to borrowers how it treats customers fairly and offer both telephone and face-to-face contact.

As many as 2,000 customers are in arrears but do not pay anything towards their loan and have not replied to letters or telephone calls from the bank.

In some cases the bank is telling people in arrears that if they sell their home the outstanding debt will be written off.

Ulster Bank’s chief risk officer Stephen Bell said:  “Ulster Bank’s primary objective has always been to help our customers in difficulty come to a fair, affordable solution which allows them to remain in their homes and the communities which they have chosen. We firmly believe that through engagement, a solution can be found for the vast majority of customers who are in arrears and we are trying to encourage this in every way we can.

“For the 22,000 customers that have already come out of home loan arrears or are in an arrangement, these commitments are not new, but for those who are not reading the letters or answering the phone to our help, I appeal to them to engage with us. We will not seek to repossess your home if you engage with us and we can agree a solution or outcome.

“We will also look sensitively at your expenditure to ensure that you maintain a reasonable standard of living. But if you do not engage, we have no choice but to go down the legal route. The choice rests with the customer but we want to make sure that they know how we could help them to stay in their home.”