Fixed term mortgage offer now dishonoured

C

Carold

Guest
Hi we recently were approved for a 3YR fixed mortgage with Ulster bank, we signed contracts in our solicitors 3 weeks ago and have heard nothing till today when we were told by our broker that Ulster bank are not honouring the Fixed rate we were given as the rates have increased (after we signed contracts), Does anyone know where we could stand on this issue can we demand they stick to the rate we signed for or is it that we have to go with what ever rate they decide to give us when they issue the loan cheque.
Thanks in advance for any information I'd really appreciate it as im going mad here.
 
In short - you can't. If the cost of money has gone up (or down) in the intervening period between the loan offer being issued and closing then any lender has the right to increase/decrease the interest rate on offer.

It's the same situation if the price of oil increases (decreases) then petrol goes up (or down).

Sarah W

www.mortgagesoverseas.com
 
Thanks sarah, appreciate the response,
It seems unfair after contracts where signed and as we where delayed 3 weeks after contracts waiting for them to issue the cheque I now think that maybe they were delibertly not issuing the cheque waiting for the rates to increase, Is there anyone we could complain to about this sort of thing. I might feel better if I could vent my anger to someone.
Thanks again
carold
 
As previous posters have said the lender's t&cs will cover this.

If the rate had fallen would you have accepted the lower rate?
 
As a matter of interest what rate were you given and what has it risen to , I may find myself in the same situation having just signed contracts and offered 2 year fixed at 4.99%
 
carol - I feel your pain. We are in the same situation with UB, though not as far down the road as you.

I told UB that we are moving our mortgage, our uFirst current accounts, credit cards etc, but they said they will let the business go, rather than give us the 4.65 rate. we cant afford the new UB rate.

The next best fixed rate (as advised by our broker) is ICS 2 yr fixed at 4.79. This rate will be open until October as they have bought the funds in bulk for this (apprently). Their approval process was very quick - we got a response in a day.

BankofScotland have great fixed rates (4.58 2 yr, 4.69 3 yr). I called Bank of Scotland yesterday and they told me it was too risky to start the application process, as these rates are going to change imminently.
 
Bank of Scotland rates changed last week
4.84% 2 and 3 year fixed
4.88% 5 year fixed.
 
Carold

Your story is a carbon copy of my own. I began the process of switching my mortgage over to UB nine weeks ago!! I was impressed by their offer of a fixed rate 4.65% and €1000 and thought it was too good to be true. Looks like I was right.

I thought that the way UB messed me around, dragged their feet and stalled when sending out a loan offer was comical at the time. Now I believe there was a more sinister motive. The best example of this was when they sent a loan offer out to First American Solicitors with a 4.9% variable rate on it; and when I rang about this they encouraged me to sign it so they could sort the problem out afterwards!!

Some of the other contributors to this thread may well be right about the Terms and Conditions. However, I am in the process of complaining to the Financial Regulator and let them decide if there is a case to answer. It may not be illegal but it sure is sharp practice by anyones standards. I will be moving my savings account and u-first account asap. I would encourage you and anyone else to do the same.
 
If you feel that you have a complaint, then you should complain to the Financial Services Ombudsman and not the Financial Regulator.

You must exhaust the UB complaints process first though.



Brendan
 
I wont say who I work for but trust me when I say there is nothig sinister about this from UB. We all have to look in the mirror in the morning and there is not some Machiavellian collection of bank managers out there trying to find evil ways to exploit their customers. Really, there isn't !!!!

Issue here sounds to me more to do with the competancy of Ulster Bank to complete and deliver your mortgage in a reasonable time frame. Certainly I have heard stories of solicitors recomending to their clients not to us UB or First Active because they take so long to complete. What you should do is ask UB why did it take so long for the mortgage to be completed and what were the delays that caused it to take 3 weeks. Pending their response, you could make a formal complaint in writing to the bank and also take it forward with the Ombudsman, I don't see why you should suffer a financial loss because a bank doesn't have enough resources in place
 
Ah come on, Mpsox!! Who are you trying to kid?? You would be niave to believe that UB fumbled their way through mortgage applications because they are incompetent, mean while, interest rates are creeping up!!

UB are one of the oldest banks in this country and probably process hundreds of mortgage applications a week. To suggest that UB are just a bit on the the slow side when it comes to administration, beggars belief. I wonder if interest rates were going down or you missed a mortgage repayment would they be as slow.

Anyway, when I switch my mortgage, savings and current accounts over to Bank of Scotland or NIB (both are relatively new to the Irish market) I will be better qualified to compare.
 
setanta78 said:
UB are one of the oldest banks in this country and probably process hundreds of mortgage applications a week. To suggest that UB are just a bit on the the slow side when it comes to administration, beggars belief.
Click to expand...


Um-I hope that you are being sarcastic there because my experience of Ulster Bank home loans administration is not positive at all.


And I would echo what Mpsox said-our solicitor didn't think much of Ulster Bank in general either.

The fact that they are 'one of the oldest banks in the country' is irrelevent.

(edit-looking at your earlier post I'm thinking that your last post is tongue-in-cheek)
 
Setanta

I'm being absolutely 100% serious when I say there is nothing untoward here. Just because UB process 100s of morgages a week doesn't mean they couldn't do it better.
I don't work for them and won't say who I work for but it is in the industry and believe me when I say that 99% of what the public take as dubious practises in just plain old incompetance.
 
UB and FA are really quite dreadful to deal with. They can sell the product but they do not appear to be able to deliver the loan offer or the loan cheque within any reasonable time frame. Their administration appears to be be in chaos. Staff are individually most pleasant but systems just do not work. In the past two weeks, I have had three very negative experiences with them:

1. Weeks to produce loan offer letter and then once they had all the paperwork failed to produce funds in time to prevent my clients being hit with a late penalty. FA's fault.
2. Despite repeated promises, failed to produce loan funds for a Friday afternoon causing a chain to collapse, at the last possible moment, leaving several families in limbo for a weekend and removal companies in chaos. UB's fault.
3. Verbally promised client to fix loan rate on receipt of initial documentation. Got initial documentation, sat on it, after being chased demanded further paperwork (not initially required), pulled verbal promise of fixed loan rate, then advised that did not require further paperwork. UB again.

As I say, individual staff members are terrific but that is no good to any of our clients who have to have the certainty of knowing that their funds will be available. I cannot and will not recommend them to clients.

mf
 
I worked for another lender and if rates changed, a new offer letter went out straight away - I think the T&Cs stated fixed rates expiring and being replaced. Which includes down as well as up in better times. Remember the offer letter is subject to all sorts of conditions and is not final until then.

We actually used to allow people to book rates for a fee, so even if they changed you kept the rate but I'm pretty sure that practice was scrapped.

From their point of view, because the loan didn't progress, they never booked the funds at that rate on the market and now they will have to book them at the higher rate. I have seen lee-way in certain cases (depending how valuble the lender deems the client) but apparently that particular UB rate was very heavily subscribed.

It's sad but I have to agree with Mpsox, delays like this are not malicious but due to poor IT systems/poorly trained staff/lack of staff etc.
 
To be fair to all the banks, it should have been highlighted from day one that fixed rates can change/be withdrawn at any time up to drawdown.
That is the nature of the beast, if you have gone to Ulster Bank direct and had not been advised that well blame your advisor, the same applies to your broker.
It's not cricket but the banks are well within their rights to alter their offerings.
 
Confirming bad news does not necessarily denote agreeing with a lenders practices. A few years ago, some lenders used allow you to lock into a proposed fixed rate by paying a nominal fee. All lenders now operate on the basis that the fixed rate that you get will be the actual rate available on the date of draw down. There are a few elements of gambling involved in opting for both a fixed rate or a tracker rate and this just happens to be one of the negatives when opting for a fixed rate.
I do not want to eternally be the bearer of bad news, but when you apply for a mortgage, or any form of credit, you just become a number in their system, so none of the delay tactics etc are to be taken personally. They are, as stated by others above, just pure incompetance in the lender's procedures and practices. Staff on holidays, back logs following a marketing campaign etc are all reasons why it would take so long to get something processed. Given the control the Financial Regulator has over banks and all financial institutions, I doubt very much that the board of any lender would issue instructions to staff to deliberately delay issuing loan offers or loan cheques purely to ensure that they can charge a higher rate of interest. In principle, if rates go up for us following an ECB increase, they also go up for the lender.
Best 3 year fixed rate? BOS @ 4.89% - Very good rate and well worth considering.
Easiest lender to deal with? ICS Building Society.

As always, dyor!
 
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