Silvio Dante
Registered User
- Messages
- 127
How could you be on KBC's standard variable rate (SVR) if the rate you were actually paying was lower than KBC's SVR?
Surely you were on an LTV based, individually negotiated, or some other form of discounted variable rate rather than the SVR - no?
You are absolutely right on one point though - a lender can adjust any variable rate mortgage that does not track an external reference rate at their absolute discretion. That's the deal you signed up for.
If you are not prepared to accept this particular term of the deal, then a fixed rate product is your only other option.
No rational person would take out a mortgage which the bank can charge any rate it likes.
Of course a rational person might get a mortgage and not repay it.
I am not aware that a fixed rate mortgage for the term of the loan is available in Ireland.
Silvio
Again, I'm not arguing "banking ethics" (frankly, i don't even know what that means) or the rights or wrongs of KBC's mortgage pricing policy.
You are trying to argue that you are on KBC's SVR even though you have to date been paying a contractual rate that is less than KBC's SVR. Does that sound even remotely plausible?
But, yes, fundamentally I believe that if you make a deal with somebody then you should honour that deal. And, if necessary, you should be compelled by law to do so. The same basic principle should, of course, apply whether you are a lender or borrower. It's a basic legal freedom.
I appreciate that it's fashionable these days for a party to appeal to notions of "ethics" and "fairness" where an agreement turns out to be a bad deal from their perspective.
My attitude? Do a better deal next time.
Mind you, this is the first time I can remember anybody arguing that they actually signed up for an SVR!
Why do you think you are "entitled" (your phrase) to an equivalent reduction to a rate that another cohort of borrowers is paying? Ethics? Fairness? Or something else?
Again, is switching lender completely out of the question? Either now or in the not too distant future?
I am happy with my position and believe KBC's position is nowhere near as robust as you believe but let's see how it progresses.
Variable rates can be increased or reduced at the discretion of the lender.
There is no point in a bank offering you a variable rate mortgage even at a discount to their SVR if they can pass on all increases and not pass on reductions (which is exactly what has happened).
However, crucially (he says hopefully) both broker and KBC in all pre draw down negotiations confirmed this was a variable rate and I would be subject to all normal fluctuations in the variable rate as they arose.
Broker, bank and solicitor never warned me this would or could happen.
the Saver Plus Variable Rate"
100% agree, and this is definitely the case for the current LTV products they are selling (in my view) as it is the same product. But what about these other 'legacy' products which may not have been defined. This is where the complexity lies.KBC has never made it clear to borrowers that they would not be getting the rate cuts which new customers are getting. In my view, this is a key feature of the product and as such, they were obliged to notify potential customers of this fact. They didn't, so they could be accused of mis-selling.
Simple question on this - is the Saver Plus Variable Rate defined ANYWHERE in the documentation? Surely it is somewhere? If not, what did you understand you were signing up to, and what does your home loan documentation say
From the date your home loan was taken out, did the Saver Plus Variable Rate move with changes in the SVR rate up to a certain point - so upward and downward? Did KBC make any announcements regarding movements in the Saver Plus Variable Rate.
Are you able to access the KBC website archives (web.archive.org or something may be able to assist you here) to see how this variable rate was defined
I think central to any complaint here will be the definition of the Saver Plus Variable Rate.....
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