EBS reducing my BTL rate from 4.8% to 1.5%!

L

LARD1

Registered User
Messages
17
Took out a BTL mortgage in 2004 with EBS .I cant remember at the time what my repayment options were ie tracker,variable rate etc. I think I was just happy to get the loan and hop on the Celtic tiger train . As the years went by I struggled to pay ,and I had a few years on interest only and built up arrears of 15,000 . They wanted me to sell two years ago as the mortgage was unsustainable and in negative equity but somehow I managed to get back on track and have been paying capital and interest since but still have the 15K arrears.
Yesterday I received a letter stating that my mortgage had the option of switching to a tracker rate which I never got . I had no clue about this .I have been told now that my repayments are going down by 320.00 pm and I have been put on the tracker rate of 1.5% from a variable rate of 4.8 % and that I am due a refund and compensation . How happy am I ! I am to receive a letter in November outlining how much I am due .
Anyone have any idea what this amount is ?
 
I received a similiar letter it seems this error only came about on a audit I have to wait for their full report
 
LARD1 said:
Anyone have any idea what this amount is ?
Click to expand...

Hi Lard

Very hard to know what the amount might be without knowing the circumstances.
1) How much was your initial mortgage?
2) I presume you fixed? When did the fixed rate end?

This is only a stab in the dark. But let's assume you fixed in 2006 for three years. In 2009, they should have offered you a tracker rate of ECB +1.5% but didn't.

EBS didn't really push up SVR rates for a few years - so the difference between SVRs and trackers didn't amount to much until around 2012. The gap now is around 3%.

So let's say, you have been overcharged by around 3% a year for 4 years. ( It could be a lot more or less.)
That is 12% in total.
If your mortgage is €200,000, then you have been overcharged in the order of €24,000.

Your arrears will probably disappear.
You will then get either a refund of overpayments, or they will adjust your balance to where it would have been had they charged you the correct rate.

You will also get about 10% of the overcharge in compensation, but you could claim more if the incorrect arrears caused you other financial losses e.g. overdraft interest or credit card interest or a bad ICB record.

Brendan
 
I have reviewd my contract and I should have been on a BTL tracker +1.5 since 2008 Ebs are due to come back to me In November but I want to work out my figures - where would I get a list of previous tracker rates going back over the years
 
You must log in or register to reply here.
Back
Top