KBC KBC prevailing variable rate

Sanparom

Frequent Poster
Messages
102
Unless you have the word "tracker" or xx% above european Refi rate written in your main contract, then I can't see any case. For me and others, the mortgage was taken out as a tracker. It was written in black and white in the contract. and at the time when we went onto fixed and told that it would revert to the homeloan variable rate, we assumed (rightly so imo) that it would revert to the variable rate that we had signed up to and which was written in our contract - "xx% above ECB refi rate".

What most people are fight for is the return to the contracted rate in the original mortgage document that is very clearly stated that it is a variable rate at xx% above the ecb refi rate "for the life of the mortgage". The three year fixed instruction should only have amended he document for the three years.
peemac, their 'Prevailing Variable Rate' was another term for a tracker, was it not?? If someone could confirm this for me, that would be great.
 

peemac

Frequent Poster
Messages
660
Hi Peemac,

Am with KBC too. Tracker was written in special conditions of my mortgage contract. On the mortgage fixed rate form I signed ( which was very poor quality and barely legible) it stated that fixed term effective from 1st Aug 2006, thereafter reverting to "company's standard variable rate." Revert means to "return to" so I assumed go back to my tracker rate after fixed period finished.The word variable was always used throughout my contract and it was told to me by broker that it was a tracker as in special conditions it states how it would follow ecb rates for life of loan. Padraic in his citywest talk stated that KBC didn't even have a SVR at that time so what does exactly does "company" mean here?
The word "revert" and the fact that your (and my) original and main mortagge document clearly stated what the variable rate was - xx% above the ECB refi rate. It is this document that your would revert to in absense of any glossary of terms (there was none).


peemac, their 'Prevailing Variable Rate' was another term for a tracker, was it not?? If someone could confirm this for me, that would be great.
No - unless you had it written in the contract and said that the prevailing rate was that in the contract.

It seems that they did have a "standard variable rate" but it was not offered at the time as the trackers / fixed were the only rates the market wanted.

By all mean chat to someone like Padraic, but I think that unfortunately you are clutching at straws.
 

joe351980

Frequent Poster
Messages
94
To me the prevailing rate is the rate at time of signing contract. If you had asked what the prevailing rate would have been on expiry as an other poster did (Declan with PTSB). Would they of told you it was 'x' over ECB.

Also how could the offer discount trackers if they didn't know the rate they were discounting against.

In the case of a discounted tracker, the prevailing rate would have to have been the current.
If tracker rates went down to 0.5% over ECB then a rate of 0.6 could not be called a discounted tracker.
 

Lightening

Frequent Poster
Messages
319
The word "revert" and the fact that your (and my) original and main mortagge document clearly stated what the variable rate was - xx% above the ECB refi rate. It is this document that your would revert to in absense of any glossary of terms (there was none).

It didn't always state the rate in the contract because the flyer was the rate!!

However Sanparom predates the flyer (see earlier notes above ) so not sore if he has a case.

Reading all the above posts sure it's no wonder people were confused then never mind now.

Suggest you contact Padraic !
 
W

Wardy7

Guest
@peemac please be aware that there are quite a lot of us who didn't start off on a tracker rate, but on a fixed rate.

The contracts still state that after fixed rate we will roll onto tracker rate, and the word "revert" is also used.

Some of us have been restored to the tracker mortgage albeit at a ridiculous rate.

My point is, you did not need to have a tracker mortgage originally to be entitled to it after a fixed rate. It's all in the contract wording!

People are definitely being confused by this!
 

Lightening

Frequent Poster
Messages
319
Totally agree!! It's confusing which is why Padraic will be your guide I am sure he knows all the KBC contracts like the back of his hand.

When the communication (flyer) was in operation that set the margin.

The contracts vary a lot! But agree starting on a fixed rate there was also an emtotlement to tracker.

Some started on fixed and were already put back on the tracker others started on a tracker and were not returned to tracker!
 

DamC82

Frequent Poster
Messages
155
Lightning that is very interesting .
You are a mine of info on IIB!!

I was unaware of the 601 accounts , it certainly gives some hope..
it's the hope that kills you though !!
We never went interest only and haven't missed a single payment in 10 years, so that can't be used against us.
 

Duke of Marmalade

Frequent Poster
Messages
2,446
If this case is typical then all talk of "fraud" is totally off the wall and Fintan O'Toole should get back in his box.

It seems to me that this is a wrangle between the customer and the bank to see who has a "gotcha" in the contract wording. The bank would argue that "prevailing" means at the time of moving over to that rate and that makes perfect commercial sense. The customer will try and argue that it meant the rate prevailing at some earlier time, a rate which is now hopelessly non commercial. If rates had gone in a different direction maybe the two parties would switch positions though I think the bank would have adopted the consistent commercially sensible approach.
 
W

Wardy7

Guest
So when I drew down my mortgage and was given a full & detailed calculation of what it would cost me over the lifetime of the mortgage, they used a %rate to do calculations. (Excluding ECB portion obviously)

So this rate should now be defunct & I should be happy with the new rate they came up with?
 

Lightening

Frequent Poster
Messages
319
DamC82

No it's old news!

Am quoting Verbraeken! On the 601 pit back on trackers in 2010. Fixed rate contracts.
 

Lightening

Frequent Poster
Messages
319
A quote from Bernard Byrne AIB at the Oireachtas Committee Meeting recently;

"Our view of the prevailing rate is that it is the rate that prevails at the time at which the product is offered and that is how we consider it".
 

Sligolive

Frequent Poster
Messages
58
In cases where KBC bank deems in scope accounts to be "not impacted" , at a minimum the bank should be directed to explain to these customers the rationale as to why these accounts were in scope, the associated cohort and the reasons why the cohort is deemed "not impacted". It is getting and probably will get more confusing for customers to understand their individual status within the examination
 

Glitter

Registered User
Messages
5
We drew down our mortgage in Nov 2008, we fixed for 3 years. My letter of offer has the wording after the fixed rate term we roll onto "the lenders prevailing interest rate." No mention of ecb.
I rang KBC this morning and they told me I was NOT included in the review.
Where do I stand?
(Posted in other section also but this one seems more recent)
 

peemac

Frequent Poster
Messages
660
We drew down our mortgage in Nov 2008, we fixed for 3 years. My letter of offer has the wording after the fixed rate term we roll onto "the lenders prevailing interest rate." No mention of ecb.
I rang KBC this morning and they told me I was NOT included in the review.
Where do I stand?
(Posted in other section also but this one seems more recent)
There was no tracker mortgage available to new customers in November 2008. So you are not impacted.

Best you can do is to see what current rate is best value for you.
 
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