E
Engaged2be
Guest
I received a Mortgage Loan Offer Letter from BOI on the 1st of March 2011.
The terms of the offer were:
Amount of credit advanced: €197,800
Period of agreement 35 years
Fixed at 3.4% for 2 years, monthly repayments of €804.98
Variable at 3.35% for the remaining 33 years.
I put a deposit on a house shortly afterwards, the offer was accepted and despite several delay tactics by the bank (don't get me started..) towards the end of April they finally issued the mortgage cheque. Yay!
A week later I found a letter from the bank that had been buried under a pile of admin, it was dated the 21st of April. This letter outlined a rate change notification.
"We refer to your Letter of Offer dated 1st March 2011 which provides for a fixed interest rate of 3.4% for the first 24 months of the term of the loan.... This rate is no longer available and if you wish to proceed with this loan, the fixed rate that now applies is 4.75% for the first 24 months of the term of the loan"
This new rate does not correspond to any mortgage rate for a FTB, existing customer on their website:
2 Year Fixed rolling to Variable VRP15 all LTVs - 3.8%
Can the bank make up a new rate so close to the closing date of the sale, after weeks of delaying issuing the cheque?
I now have to pay €964.63 a month for 2 years which is almost €3000 extra.
I met with the bank a few weeks ago, they couldn't explain the rate change and wouldn't accept my argument that it didn't match the rates advertised online. Basically, it was my tough luck. Had I been offered this 4.75% rate from the start I would naturally have chosen the variable rate of 3.35%. If I wanted to change now it would cost me €1,400.
I would welcome any advice on this matter. Thanks.
The terms of the offer were:
Amount of credit advanced: €197,800
Period of agreement 35 years
Fixed at 3.4% for 2 years, monthly repayments of €804.98
Variable at 3.35% for the remaining 33 years.
I put a deposit on a house shortly afterwards, the offer was accepted and despite several delay tactics by the bank (don't get me started..) towards the end of April they finally issued the mortgage cheque. Yay!
A week later I found a letter from the bank that had been buried under a pile of admin, it was dated the 21st of April. This letter outlined a rate change notification.
"We refer to your Letter of Offer dated 1st March 2011 which provides for a fixed interest rate of 3.4% for the first 24 months of the term of the loan.... This rate is no longer available and if you wish to proceed with this loan, the fixed rate that now applies is 4.75% for the first 24 months of the term of the loan"
This new rate does not correspond to any mortgage rate for a FTB, existing customer on their website:
2 Year Fixed rolling to Variable VRP15 all LTVs - 3.8%
Can the bank make up a new rate so close to the closing date of the sale, after weeks of delaying issuing the cheque?
I now have to pay €964.63 a month for 2 years which is almost €3000 extra.
I met with the bank a few weeks ago, they couldn't explain the rate change and wouldn't accept my argument that it didn't match the rates advertised online. Basically, it was my tough luck. Had I been offered this 4.75% rate from the start I would naturally have chosen the variable rate of 3.35%. If I wanted to change now it would cost me €1,400.
I would welcome any advice on this matter. Thanks.
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