KBC moved me to investment mortgage of 5.44%

[Kilmainham Apt]

Apologies if this is the wrong forum, but wondering if anyone has advice on this

Bought house for 157,500 in 2005 FLEXI ANNUITY mortgage, at 2.69% fixed for 12mths then up to 3.44% payments per month 637.99. In 2010 rented out the house, they found out as tenant posted back correspondence to them and they put me on 5.44% buy to let rate, I just accepted it at the time as my mortgage broker told me that was standard but I really struggled to pay the new mortgage which now stands at 980euros per month as I went into arrears and took two interest only breaks as rent I receive is only E500 per month. With all the publicity over tracker mortgages and wrong rates I looked through my loan agreement and I can't see anything in the T & Cs or particulars that they could do this, and on further research it seems KBC have done this to some people and not to others even though they knew the property was rented. Before I tackle them any advice?

 

[Brendan Burgess]

Did they write to you at the time telling you that they were putting you on that rate, or did they just do it?

You should have challenged it back then, and it may be too late to do so now.

You need to write to them and ask them to explain why they are charging you this rate now and not the rate agreed in the mortgage.

However, KBC is very difficult to deal with. I am sure that your contract says that they can charge you what they like.

With another lender it might specify the rate as the Standard Variable Rate.

Danske Bank has a specific clause which says it will charge the buy to let rate if the home is let out.

Brendan

 

[Kilmainham Apt]

Hi Brendan, it was just a phonecall that caught me off guard, I don't remember a letter. I know they are very difficult to deal with but if they're doing something they shouldn't I'll go to the ends of the earth on principle given their recent behaviour. THanks