We had out mortgage with BOI who last year sold it to a vulture fund. We were in arrears due to personal circumstances. Whenever we got a notice about a non payment or a shortfall payment from BOI it was phrased like the following as an example in Sept 2023:
Mortgage account number: xxxxxxx
Date it fell into arrears: 17/12/2012
Number of missed payments: 30.84
Arrears: €36,337.19
Current mortgage rate : 5.5% per annum
Interest rate applying to the arrears: 0%
We had good years and bad years since 2012 but we were not ignoring the bank and engaged with them at all times. So, there have been a few alternative arrangements set up over the years. When I read the letters as outlined above, I honestly thought that the BOI were not charging interest on any of our arrears because in my head that the €36,337.19 had already had the interest added to it, prior to being in the arrears column. My apologies if it sounds confusing, I don't know what other way to put it.
Fast forward to being with the vulture fund. BOI charge their interest quarterly and their last one was on 27/9/2023. They then added additional interest on 2/10/2023 and closed the account on the same day. The transfer to the vulture fund was on 2/10/2023.
Two situations happened. the first is that the vulture fund charges interest on a monthly basis and their statements show the 5.5%, [now 5.75%] interest on two line items one for the interest accrual on Principal and the second Interest accrual on PriArrears.
When I questioned the interest on arrears on the vulture fund's statement, I was told that BOI also charged it and that they can charge interest on the arrears, they just can't charge an additional interest on top of that.
The full balance on the mortgage when sold was €165806.80 [Including arrears of €36,337.19] end of Sept 2023
Our monthly payment @ 5.5% was €1696.50
We paid a total of €6600 - October 2023 to end of Feb 2024
Yet our balance shows as the following on their 29/02/2024 statement
Total balance outstanding on your mortgage €162,991.63
Overdue mortgage payments €38,219.69
Interest on Overdue payments €852.63
Total sum of payment shortfall €39072.32
Are the above figures correct? As in do the calculations make any sense that someone can spell it out in layman terms for me? I can't wrap my head around paying €6600 and the outstanding mortgage balance only going down by €2815.17. I understand the interest rates are high right now and that we do have the build up of arrears
I also discovered when I looked at the 2023 Interest certificates from both BOI and Vulture fund that, the vulture fund charged interest on the account on 1st Oct, 2023, the day before it was officially handed over to them, but the interest certificate from them does not show this additional interest being charged.
Thanks in advance for any clarity you can give to me.
Mortgage account number: xxxxxxx
Date it fell into arrears: 17/12/2012
Number of missed payments: 30.84
Arrears: €36,337.19
Current mortgage rate : 5.5% per annum
Interest rate applying to the arrears: 0%
We had good years and bad years since 2012 but we were not ignoring the bank and engaged with them at all times. So, there have been a few alternative arrangements set up over the years. When I read the letters as outlined above, I honestly thought that the BOI were not charging interest on any of our arrears because in my head that the €36,337.19 had already had the interest added to it, prior to being in the arrears column. My apologies if it sounds confusing, I don't know what other way to put it.
Fast forward to being with the vulture fund. BOI charge their interest quarterly and their last one was on 27/9/2023. They then added additional interest on 2/10/2023 and closed the account on the same day. The transfer to the vulture fund was on 2/10/2023.
Two situations happened. the first is that the vulture fund charges interest on a monthly basis and their statements show the 5.5%, [now 5.75%] interest on two line items one for the interest accrual on Principal and the second Interest accrual on PriArrears.
When I questioned the interest on arrears on the vulture fund's statement, I was told that BOI also charged it and that they can charge interest on the arrears, they just can't charge an additional interest on top of that.
The full balance on the mortgage when sold was €165806.80 [Including arrears of €36,337.19] end of Sept 2023
Our monthly payment @ 5.5% was €1696.50
We paid a total of €6600 - October 2023 to end of Feb 2024
Yet our balance shows as the following on their 29/02/2024 statement
Total balance outstanding on your mortgage €162,991.63
Overdue mortgage payments €38,219.69
Interest on Overdue payments €852.63
Total sum of payment shortfall €39072.32
Are the above figures correct? As in do the calculations make any sense that someone can spell it out in layman terms for me? I can't wrap my head around paying €6600 and the outstanding mortgage balance only going down by €2815.17. I understand the interest rates are high right now and that we do have the build up of arrears
I also discovered when I looked at the 2023 Interest certificates from both BOI and Vulture fund that, the vulture fund charged interest on the account on 1st Oct, 2023, the day before it was officially handed over to them, but the interest certificate from them does not show this additional interest being charged.
Thanks in advance for any clarity you can give to me.
