I don't think it's as good as that.If I read this correctly, if you are with a vulture fund paying high interest and can show 24 months of clean credit history, you will be able to move to one of the main banks.
Possibly not for all of them as many will have arrears, but its a start and also an acknowledgment that it is an issue. Maybe the CB will realise that their policies were partly responsible for the corner many find themselves in.I don't think it's as good as that.
What all the main lender have agreed is a standard 'minimum' criteria before they'll look at switching applications.
But I do think it's a positive, especially if there's some publicity around it aimed at those who in reality could have switched before this, but didn't realise it.
I can't believe it's so long since we discussed this, but definitely one of the items that makes no sense is the CPC requirement to complete stress testing, which is to protect the borrower. They're already in debt, switching doesn't make it worse.Should CB remove their mortgage affordability criteria for refinancing, provided the total principal owed is not being increased?
Looks like the campaign has had some affect
If I read this correctly, if you are with a vulture fund paying high interest and can show 24 months of clean credit history, you will be able to move to one of the main banks.
The funds win because they get full payment and can invest elsewhere. Customer wins because they can access far lower rates and main banks win because they have more homes for their low rate deposit book.
Should have been done months ago
What about a customer who is on an ARA?
Anyone would think the banks don't want these customers!
Not only that, but weren't they basically told to offload them in the past in order to clean up their mortgage books? Are they now going to be told to take them back?They don't.
Not only that, but weren't they basically told to offload them in the past in order to clean up their mortgage books? Are they now going to be told to take them back?
I don't understand. If they clear the split doesn't that mean that the mortgage is no longer split? But I'm not sure what "clearing the split" means. Adding the warehoused chunk back to the main mortgage principal and making capital plus interest repayments on the whole lot again perhaps?Charlie Weston is reporting that people with split mortgages can move one month after clearing the split.
Hope for thousands of mortgage prisoners as rule change means they could move away from vulture funds
Thousands of Irish mortgage prisoners trapped by the vulture funds who bought their bank debt could soon escape their clutches – and be able to move their home loans back to mainstream lenders.www.independent.ie
If this is correct, it really reinforces the nonsense mentioned by Clubman above.
Split mortgages were classified by the Central Bank as non-performing.
Now they are ok.
Brendan
Mr Coan said the BPFI has confirmed to him that those who meet the new criteria will now only need to have been paying full capital and interest for a month to switch.
Would it be worthwhile you posting a Money Makeover thread in order to garner feedback here maybe?I contacted BOI yesterday and can’t switch due to affordability rules. I only one working with wife and 2 dependents. I’ve mortgage with pepper paying full capital and interest but also car loan so I didn’t meet criteria to switch.
I would be saving €250 per month if I could have switched
Will try the other lenders mentioned over next few weeks.
apply the first time buyers rule of 4 times income multiple would be a more ideal starting point.
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