KBC KBC told brokers" all fixed rate loans will roll onto trackers on expiry"

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peemac

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Yes perhaps you are correct (most likely so) the term "Prevailing interest rate" just confuses me however -did this mean a standard variable rate? And if so why did they not say that in them exact words as in our following letter after our fix rate was over. It's just a bit confusing
It would make no difference as there was no tracker available when you took out a mortgage.
Even saying prevailing rate and saying the rate from November 2008 applied, that would be the Standard Variable Rate / Home loan rate that applied then and which can move up/down at the bank's will.

Unless you have somewhere that it would follow the European Refi rate at a fixed % over, then there is no possibility of being an impacted customer.

Most impacted customers took mortgages out between 2003 & 2007 when trackers were the standard offering.
 

Lightening

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[QUOTE
Unless you have somewhere that it would follow the European Refi rate at a fixed % over, then there is no possibility of being an impacted customer.
UNQUOTE

The above statement is incorrect!

The fixed from the start contracts did not need to state ECB/REFI since the prevailing variable (within a certain window time frame) was only referencing the Variable (tracker). The communication (flyer) to brokers referenced the % margin during that "window". Those who started on trackers had the margin quoted.

I agree that the prevailing rate was a Standard Variable Rate from end 2008 and KBC changed the wording to include the word "Lenders Standard prevailing Variable Rate" however the exact date needs to be clarified when KBC stopped offering trackers so people can check. I believe it to be around mid 2008 but not sure.
 

Lightening

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Let me clarify!

Within a certain window timeframe
The variables (tracker) quoted the margin
The fixed from start (variable) didn't have to since the margin was stated in the communication to brokers

Within the same time frame there was no such thing as a Standard Variable Rate
 

peemac

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The fixed from the start contracts did not need to state ECB/REFI

The communication (flyer) to brokers referenced the % margin during that "window". Those who started on trackers had the margin quoted.
I'm not saying it has to be in the contracts - if you took a fixed rate and the marketing material at the time said that you would then go to tracker - then that's something in writing.

November 2008, there was no bank offering trackers. They had ceased to exist, hence a person taking a mortgage out at that time can't possbly have an entitlement to a tracker.
 

Mauritius

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Asking on some one else's behalf: she took out her mortgage with KBC i may 2008 and fixed for two years. Earlier in 2008 the tracker product was still on offer at KBC? @Lightening @peemac Does she have a chance?

November 2008, there was no bank offering trackers. They had ceased to exist, hence a person taking a mortgage out at that time can't possbly have an entitlement to a tracker.
 

peemac

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Asking on some one else's behalf: she took out her mortgage with KBC i may 2008 and fixed for two years. Earlier in 2008 the tracker product was still on offer at KBC? @Lightening @peemac Does she have a chance?
Highly unlikely.

If she only started the mortgage in 2008 and started with fixed, then there's almost no possibility of being entitled to a tracker.


The infamous broker flyer applied in 2006.
 

Lightening

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Hi Mauritius

I believe it depends on the wording in her fixed rate agreement. I understand the Variable (tracker) was still available but unsure if KBC commenced their "Standard Variable Rate" (SVR) product by this time.

Tell her to send her contracts to Padraic Kissane he knows this info and can confirm.

The communication to all brokers did not just apply for 2006 and I understand Padraic will elaborate on this for her in more detail.

I understand there is no charge for sending the contracts and initial advice so it well worth doing.
 

peemac

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Here's a good read with your Saturday coffee.

Its kbc's prospectus for the sale of 3.2bn of mortgage securities from 2009.

Gives a good breakdown of their mortgage book and comprises of about 25,000 mortgages out of an estimated 70,000.

It does state that fixed rates move to both tracker abd svr. Interesting that the capped tracker was for 3 years only and then became a standard variable rate.

It also warns of declining house prices and possible issues with repayment
 

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Mauritius

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@peemac I don't think I'll be reading that 89 page document!! How depressing that they probably sold off my mortgage in 2009, less than a year after getting me off the tracker rate and onto their SVR, thereby making my mortgage more profitable for sale. I'm sick of this whole business by now.
 

peemac

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@peemac I don't think I'll be reading that 89 page document!! How depressing that they probably sold off my mortgage in 2009, less than a year after getting me off the tracker rate and onto their SVR, thereby making my mortgage more profitable for sale. I'm sick of this whole business by now.
All banks everywhere sell on mortgage securities. Makes no difference to your contract.

It's an interesting read about the breakdown of their mortgage book - trackers were just 20% of that offering.
 

Mauritius

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Hi @PeeBee - bundling mortgages and selling them on was what brought about the financial collapse in 2008. The concept of mortgage securitisation was conceived by a certain Larry Fink & Lewis Ranieri, both of whom admitted that their creation brought about the financial crisis when sub-prime borrowers defaulted on loans they should never have been given. Obviously, if the banks could get people off tracker loans, it would make the loans more valuable when bundling together to sell on. This is something that hasn't been explored at all in the media and would be a very interesting angle on the tracker scandal.
 

Lightening

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Thank you Saysomething

54.5 M. This is a huge increase. It appears the latest number of accounts affected in the Central Bank Tracker Review is therefore the 1090 (1661 less 571 in 2010 no financial impact). I expect (like all the banks) that those fugues will keep rising.
 

Lightening

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Taking the 4.4 M they said aside last year this is nearly 60M.

I think this is good news for many of PKs cohorts
 

Sligolive

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I think this is great news also- based on the KBC October update below, it would seem the 490 customers(bullet 2) plus the 600 cases (bullet 3)are now deemed affected..........
Is it time to open the champagne ?????



upload_2017-11-16_8-46-1.png
 

peemac

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If you take an average refund of 40k, that equates to about 1500 customers. so excluding those identified in 2010, that would suggest a further 400-500 customers in further addition to the high end of the numbers already stated.
 

ask2017

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I think this provision announcement is long overdue but KBC have dragged this on and prolonged the saga for far too many Customers they are a disgrace. They need to concentrate on completing this task and finally write to people impacted only then should we be satisfied they are co-operating. Shame on them. They had to be dragged absolutely kicking and screaming to this point.
 

Lightening

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Yes shame on them!

The ones deemed not impacted "by KBC" and deemed impacted by the Central Bank should have their day also. KBC have tried to hide behind their lawyers with the legal jargon.

KBC should do the right thing for all those deemed impacted by the Central Bank and I am hoping that those accounts will be deemed impacted eventually.

Not one account, not one family should be left behind and wronged in this scandal.
 
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