got a morgage from boi in 2006 for a business premises. The intest rate wS calculated it said in offer letter as 1.5% above euribor rate. I was paying In 2011 I got a letter to say that due to market conditions they were changing how they were calculating the morgage by switching it to bank cost of funds bcof. This was convient for them as the Eurobond dropped dramatically. I wasn't happy but manager said it was in the terms and conditions of the small print and that the increase of 0.7 % in my morgage was temporary and that as the rates for the banks dropped so would the rate. It didn't move for 3 and a half years. I am assuming the costs of funds for the banks did drop in this time.
With recent publicity about the banks behaviors and cases being taken against the banks by ombudsman and central bank I am thinking of challenging this. I have 2 main questions
1. Can the banks really change the terms of the morgage because it suits them
2. Even if they can change the way interest rate is calculated how come in 4 years since 2015 I have had one interest rate cut 5 months ago of 0.5 despite huge drops in the costs of the banks funds
This has cost me approx 25k in the last few years and I am struggling to pay a 2006 morgage that the bank should never have given me.
With recent publicity about the banks behaviors and cases being taken against the banks by ombudsman and central bank I am thinking of challenging this. I have 2 main questions
1. Can the banks really change the terms of the morgage because it suits them
2. Even if they can change the way interest rate is calculated how come in 4 years since 2015 I have had one interest rate cut 5 months ago of 0.5 despite huge drops in the costs of the banks funds
This has cost me approx 25k in the last few years and I am struggling to pay a 2006 morgage that the bank should never have given me.