Life Loans are back

Bronte said:
By any chance have you a copy of the contracts. The small print? The letter of offer.
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Someone informed me that you were mentioned over on boards, it's actually quite funny, they seem to like you over there unlike on here LOL. They also know exactly what Joe Duffy is at.

www.boards.ie

Your line is weak but your point is strong: Liveline from 10th January - Page 293

These symptoms are all those I had when I got a foreign strain of e.coli. Long before covid anything. Was quite literally at det's door for a month.
www.boards.ie www.boards.ie
 
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Bronte said:
Two things niggling me, that you can't repay early and that you've to pay future interest if you repay early
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Hi Bronte

Great summary.

She sounded so clear and well informed, but she was talking rubbish.

She did not pay the outstanding interest for the next 12 years. Why on earth would you do that?

In fact, come to think of it, she didn't pay a break fee either.

5287


So her mother sold the house to the daughter and so the Life Loan got paid off without a penalty.

If she had paid a penalty for early repayment, there would have been no need for the mother to sell it to her.

I was asked about this two years ago by someone with a Life Loan. I advised the 4 children to buy the mother's house for the outstanding balance on the Life Loan and then there would be no penalty. Then I discovered that she had passed the 15 year fixed rate term, so there was no penalty anyway as the loan was on a variable rate at that stage.

Brendan
 
Actually you're right BB, selling is one of the the three triggering events. So it's not an early repayment and there is no break fee. As far as I'm concerned Denise got a great deal and her real issue is paying anything at all, that's what it was all about. It's amazing the mental contortions people go to. I wonder what the mother actually got for her house. And if there are siblings who ended up losing 'their' inheritence.

How did you copy paste from the PDF, I couldn't manage it?

Another thing, the brochures clearly state you are to discuss the loans with your children and to make a will etc. Not that I think people should discuss with their children their own financial business, so I suppose most people just confirmed to the bank that they did discuss it. Even if they hadn't.
 
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Brendan Burgess said:
I advised the 4 children to buy the mother's house for the outstanding balance on the Life Loan and then there would be no penalty
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Hi Brendan

Life loans (or any other form of consumer mortgage) can ALWAYS be partially or fully paid off ahead of schedule without penalty.

The European Union (Consumer Mortgage Credit Agreements) Regulations 2016 explicitly provides that a consumer has a right to discharge fully or partially his or her obligations under a credit agreement prior to the expiry of that agreement.

In such cases, a lender is entitled to "fair and objective compensation, where justified, for possible costs directly linked to the early repayment, but shall not impose a sanction on the consumer, and any such compensation shall not exceed the financial loss of the creditor."

In other words, any break fee imposed cannot penalise a borrower.
 
Bronte said:
How did you copy paste from the PDM, I couldn't manage it?
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Key Post - How to put an image in a post

First of all you have to find an image. So if you see an image e.g. on this site. Right click on the image Click on Copy Image This pastes the image into your clipboard Then in the post on askaboutmoney, right click in the place where you want to put the image and click paste
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Sarenco said:
Hi Brendan

Life loans (or any other form of consumer mortgage) can ALWAYS be partially or fully paid off ahead of schedule without penalty.

The European Union (Consumer Mortgage Credit Agreements) Regulations 2016 explicitly provides that a consumer has a right to discharge fully or partially his or her obligations under a credit agreement prior to the expiry of that agreement.

In such cases, a lender is entitled to "fair and objective compensation, where justified, for possible costs directly linked to the early repayment, but shall not impose a sanction on the consumer, and any such compensation shall not exceed the financial loss of the creditor."

In other words, any break fee imposed cannot penalise a borrower.
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Here's the break fee. (and I've learnt a new skill today tee hee)

5293
 
Bronte said:
the brochers clearly state you are to discuss the loans with you children and to make a will etc.
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That is why I sent the brochure to the programme.

A person has a right to borrow money without discussing it with their children.

But BoI recommends to them that they do.

The Bank can't go any further. Imagine the furor if a lender sought a statement from each of the children to say that they did not object to their parents borrowing money.

Brendan
 
Brendan Burgess said:
That is why I sent the brochure to the programme.

A person has a right to borrow money without discussing it with their children.

But BoI recommends to them that they do.

The Bank can't go any further. Imagine the furor if a lender sought a statement from each of the children to say that they did not object to their parents borrowing money.

Brendan
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I'd say the bank would love that. But I see the Law Society said no way. Which is entirely correct.
 
Case Study - Mags

Because we bailed out banks, outrageous, surely bank has enough money made off people ....

Case Study - John

Ye don't want to know, total gibberish

Case Study - Deirdre

Mother borrowed 30K. Money used to do some jobs on the house. Now deceased. They paid it off 70K, 5 years ago when she died, with Deirdre's husband pension. Which was 15 years later. And if it had been a week later the bank would have taken the entire house worth 300K. I don't understand any of this. Entire pension was used. Corporation House, father dead a few years before. So I suppose they got the house for free.
 
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Bronte said:
Case Study - Deirdre
Mother borrowed 30K. Money used to do some jobs on the house. Now deceased. They paid it off 70K, 5 years ago, with Deirdre's husband pension. And if it had been a week later the bank would have taken the entire house worth 300K. I don't understand any of this. Entire pension was used.
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Could "taken the house" mean "compelled to sell"...
I sensed a lot of weasel words on the programme... leaving out the 230k they were still left with after discharging the debts.
 
Bronte said:
Case Study - Deirdre

Mother borrowed 30K. Money used to do some jobs on the house. Now deceased. They paid it off 70K, 5 years ago, with Deirdre's husband pension. And if it had been a week later the bank would have taken the entire house worth 300K. I don't understand any of this. Entire pension was used.
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Complete nonsense. It's hard to know whether she was out and out lying or whether she misunderstood the bank official or the bank official misunderstood the issue.

If the Executor does not take steps to repay the loan, the bank has to take legal action to recover the money. That is probably what happened here.
 
Brendan Burgess said:
Complete nonsense. It's hard to know whether she was out and out lying or whether she misunderstood the bank official or the bank official misunderstood the issue.
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I know it was nonsense but it’s left hanging in the air confirming to the audience that the banks are out to get you. In the middle of it is the ad breaks, with one for this type of product. And you can be sure after Joe discussed that there is a new loan product Spry will be inundated with people clamouring for loans on Monday. And we’ll all be here in 2036 hearing how all de oulde people were hoodwinked by the big bad banks. Though maybe we’ll be dead by then.

Seniors Money mortgages and lifetime loans

This website is for customers who took out a Variable Rate Lifetime Mortage with Seniors Money prior to 2020
www.seniorsmoney.ie www.seniorsmoney.ie

I’m considering getting my DH to apply for a loan and we can go cruise hopping till the end of our days. Telling the kids nothing and letting them get on to Joe when we’ve popped our clogs. Leper’s made me think a 3.5k coffee machine is better for my DH than the instant coffee he drinks, and I wouldn’t mind a mink coat.
 
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Leper's point that I need media training is so good that it deserves a separate thread.

Anyone going on Joe Duffy should get media training as they will be devoured by media savvy Joe

I listened to yesterday's show on the radio player:- Liveline (rte.ie) I should point out that on another thread on this forum I compared "Life Loans" to giving sweets to a child and for the record I am against such loans. The following is my opinion of what happened on the show:- 1. Siobhán...
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Hi Sop

That is interesting. But it's only technical stuff about the fact that BoI insist that a will be made and that they be notified who the executor is - all of which is a good idea anyway.

There was no substantial objection to the product.

Brendan
 
Later on they have some nonsense that the fixed rates are higher than the rates on ordinary fixed rate mortgages and that there should be no early repayment fee.

They really hadn't a clue.

(a) The bank does not need to charge the redemption fee because it is getting back the entire capital sum earlier than expected and it can re-lend that sum at a higher interest rate to someone else, or at the same fixed interest rate to someone else, which means that the bank is not incurring an actual loss at all.

(b) The second point is that if the rate is fixed on the basis of average life expectancy, the bank does not, so far as the committee is aware, decline to charge a redemption fee if the borrower lives beyond that average age on which the interest rate is based.

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It is the further view of the committee that charging a higher fixed interest rate for lifetime mortgages than for other fixed rate mortgages available in the general mortgage market, is in effect a treble charge on a lifetime borrower.
 
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