Pepper now charging some customers 9.5%
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Brendan Burgess
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Took out mortgage with kbc
Took out mortgage 2005 i think
Wife in bad health did a restructure with kbc....fell into arrears again when wife was denied social welfare.
Sold to pepper last year in February we did an ara with them was paying 4.25 percent previously with kbc. Haven't missed a payment only arrears is when I pay mortgage end of.month it takes a few days to go through and pepper charge u interest by the day so I clear that every month but land back in the same boat the next month 20 or 30 euro.
12 years left 198k left they won't extend it as it was before with kbc even though I will be 52 when it cleared.
Took out mortgage 2005 i think
Wife in bad health did a restructure with kbc....fell into arrears again when wife was denied social welfare.
Sold to pepper last year in February we did an ara with them was paying 4.25 percent previously with kbc. Haven't missed a payment only arrears is when I pay mortgage end of.month it takes a few days to go through and pepper charge u interest by the day so I clear that every month but land back in the same boat the next month 20 or 30 euro.
12 years left 198k left they won't extend it as it was before with kbc even though I will be 52 when it cleared.
Brendan Burgess
Founder
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So you were on KBC's SVR.
They have added the full EBC rate rise of 4.25% to this to bring it to 8.5%
Brendan
Jim Stafford
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Brendan
Your analysis above is very illustrative.
The increases in interest rates are starting to financially hurt many people.
If borrowers are seeking to challenge the funds "arbitrarily" increasing their interest rates they need to "prove" that the funds are not entitled to increase their rates. How can they obtain such proof? Firstly, everybody accepts that the funds have to continue the same contract that the borrower originally had with the original bank.
Many of the "original" mortgages had standard interest rate variation clauses that stated if ECB went up a certain % then the mortgage rate went up by the same amount. However, in practice, we have seen that the pillar banks have not passed on all of the ECB interest rate rises to their borrowers.
In some cases, it would be easy to prove that a fund has unfairly increased interest rates. Say, for example, an AIB Standard Variable Rate loan was sold 5 years ago to a fund, and the fund is now charging, say, 8%, for that loan. It should be easy to determine what AIB are currently charging for that SVR loan. It is likely that AIB are charging less than 8%, which could be used to persuade the fund to reduce their interest rate to that level. If the fund refused to reduce the interest rate, then the borrower could make a formal complaint to the FSPO.
It is more difficult to challenge interest rates on loans issued by banks that have totally exited the market place, such as Bank of Scotland. In such cases the arguments become much more theoretical as borrowers may need to utilise "proxy" interest rates utilised by banks that purchased some of the BOSI loans etc
Jim Stafford
Tomandgerry
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Jim, what is your opinion relating to borrowers that sought to fix the SVR's with the Vulture funds? This option would have been available to them if they were still with their original lender.
My recollection is that most or all SVR contracts don't reference the ECB or any other criteria at all but just reserve the right of the lender to change the rate at their sole discretion. I always thought that this was an unfair contract clause. But the FSPO rejected a complaint on those grounds years ago. Of course, we have a different ombudsman now so maybe such a complaint would get a different decision today. Anyway, the issue was discussed in a few different threads here on Askaboutmoney a while ago so no point in rehashing it here.
Could a borrower challenge mortgage rates in a variable rate contract as unfairly high?
No!!! Why not? While it's unlikely that any lender would charge, say, 15% right now, I'm not aware of anything to stop them (other than fixed rate and tracker loan agreements). https://www.oireachtas.ie/en/debates/question/2022-02-22/58/ The price lenders charge for their loans is a commercial...
www.askaboutmoney.com
Can the Unfair Terms in Consumer Contracts be used to challenge high variable rates?
Edit: my post was originally in this thread but was subsequently split out into this new/separate thread... I've seen 93/13/EEC aka S.I. No. 27/1995 - European Communities (Unfair Terms in Consumer Contracts) Regulations, 1995 (with subsequent amendments) mentioned in this thread in relation to...
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Has the Unfair Terms in Consumer Contracts legislation helped any mortgage customers?
I am trying to get my head around this legislation to see if it is of any use to helping people with tracker issues or financial issues generally. I have heard it quoted a few times. The National Consumer Agency's NCA-guide-to-unfair-terms-in-contracts.docx is the best guide I have seen. It's...
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Central Bank Review of Unfair Contracts
CB has released statement regarding review. Firstly, I am glad they did something about. I actually made a written complaint to them about it 3 years ago in relation to a widespread practice not in mortgage contracts saying you can't rely on a banks valuation of property for a...
www.askaboutmoney.com
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Can I ask if any one knows when I did a restructure with kbc and went into arrears AGAIN I know more fool me....I asked could I get a fixed rate they said no cos ur in arrears....I then asked why I wasn't given the fixed rate when I restructured all on the phone should of got it in writing.
What exactly is the question that you're trying to ask?
Sorry, I still don't understand. But if there's any confusion about your own mortgage then you could always read the mortgage agreement contract terms and conditions which should clarify?
I think what he is asking is that when he is in arrears is there a clause in the contract that says the bank have to offer him a fixed rate.
Clearly not. He had a variable rate, went into arrears not once, but twice, now wants to fix, and wants to find some clause in the contract that forces the bank to give him a fixed rate.
No. You seem to have been on a variable rate, which is going up, and you went into arrears twice. Which is breaking the terms and conditions of your mortgage. You mentioned you foolishly went into arrears. Does this mean you didn't bother to pay on time or something like that? Do you not have a DD?
Do you have a copy of your contract. On this website there is a section called Money Makeover.. You put in all your income and expenditure (and this means everything) and you may be able to get some help on how to sort out your financial situation.
I'd imagine there are a load of people that badly need this now - before their financial situation gets totally out of control. The problem is many will not give full details and are behaving like ostriches.
What legally can stop a bank from increasing their mortgage rates. They are a bank, they are entitled to raise the rates if the contract says they can, which clearly is the case when their own cost of fund has gone up. Otherwise banks would be out of business.
And so what if the pillar banks haven't increased by the full ECB rate. They will.
My loan was moved from Ulster to AIB, I'd zero choice in the matter, and was informed I'd get the same rate Ulster was giving me, which was variable, (my margin rate) but that the other part, the cost of funds for AIB is calculated differently, so my new cost could be higher or lower than the Ulster cost of funds.
It feels very much deja vu on here. Like we are right back to the mess there was after the bubble burst. I wonder is it a ticking time bomb that was left to fester, the good times came back, but nobody said let's sort out the ones hanging on by a slim margin now the money is coming in again (in income)
No I never stopped paying just wasn't the full amount when herself got the medical issues. Got a new job with a decent enough wage 3200 after tax monthly but when pepper want 2150 a month up from 1700 and only 900 comes off the loan makes wonder what's the point.
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Are you saying that the rate that you pay is made up of lender's cost of funds + some margin and you were told (contractually guaranteed?) that the latter would remain the same after the move but the former might change? That sounds like a lot more detail than is normally specified in a standard variable rate contract where it's usually simply stated that the rate charged is subject to change without any further details of when or the composition of the retail rate.
@Bronte
If I remember correctly, some of your property was financed by 'commercial loans' rather than standard mortgages? The cost of funds element of your contract is very different to the issues facing mortgage holders with standard variable rate clauses.