Key Post Successfully appealed NIB's increase in rate on investment property

twofor1

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1,503
This very interesting case has been summarised by twofor1 here. If you have a mortgage on an investment property with NIB, read it. - Brendan

I have a “Variable Rate Home Loan” with NIB for an investment property. It’s called this on line, on statements and on any other correspondence I have ever received.

I noticed recently on line this account is now called a “Variable Investment Mortgage”

NIB’s investment rate has been their standard variable rate, though it only mentions a 1 year fixed rate on their website today. While maybe not the most competitive for owner occupiers it is certainly one of the best for investors. Today’s standard variable rate is 4.15%, they have said they will pass on the last .5% reduction, if they do it will be 3.65%

Could there be any reason for this name change other than introducing a higher variable rate on investment mortgages like most other banks do?

I understand they can do this with new business, but my terms and conditions state:

“the rate of interest applicable to the loan will be our applicable variable home loan rate”

Although mine is an investment property, I don’t think they could apply any new investment rate to me.

It will be interesting to see, anyone else notice this subtle change?
 

SligoInvest

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Re: NIB changed the name of my mortgage

Same here. Got letter today from NIB. I rang up and they said there is not change to rates, which is a bit disingenuous as im sure thats what they are planning. My contract with them states its a variable home loan so can they change the rates to a variable investment rate????
 

DingDing

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269
Re: NIB changed the name of my mortgage

I got the same letter. Any ideas what I should do.
 

twofor1

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1,503
Re: NIB changed the name of my mortgage

I just got the letter this evening.

I don’t think you can do anything unless they actually apply a rate that’s higher than their variable home loan rate.

If they do apply a rate that’s higher than their variable home loan rate at any stage, I will follow the complaints procedure as outlined in my terms and conditions.
 

DingDing

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269
Re: NIB changed the name of my mortgage

Contacted the local bank and they had not heard about this initiative. They asked for a copy of the letter and they will follow it up with the Senior Manager, Business Development and Support who sent the initial letter.

Will give it a couple of days and if I don't get a satisfactory response, I will pass it on as a call to the ombudsman.
 

Tomorrow

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187
Re: NIB changed the name of my mortgage

Hi there

I got the same letter.

I called my branch during the week and said that I didnt want the name of my mortgage to be changed.

I was told that somebody would come back to me, nobody has yet.

Looking at the interest rates in the independent yesterday, it seems the variable home loan is now 3.65% and the investment mortgage is qouted at 4.15%. This means, if I am correct that the bank have passed on the last ECB interest reduction to the variable mortgage and not the investment mortgage. These rates are applicable from tomorrow.

I was under the impression that the last interest rate reduction would be passed on.

I am extremely annoyed as this confirms what I suspected, that the only reason for changing the name on the mortgage was to change rates.

Is there anything we can do? I will be writing to the bank next week.

Tomorrow
 

twofor1

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1,503
Re: NIB changed the name of my mortgage

The standard variable was 4.15% which they also gave for investments.

Now they have Standard Variable still @ 4.15% and two new rates,
Home Loans @3.65%
Investment Mortgage @ 4.15%

My Terms and conditions clearly state it’s a “Variable Rate Home Loan” and “the rate of interest applicable to the loan will be our applicable variable home loan rate”

If I am on the Standard Variable rate or the Investment Rate tomorrow I will argue the Home Loans @ 3.65% is the applicable rate for my Variable Rate Home Loan.

Terms and Conditions say you must first try and resolve any complaint with your Branch Manager, if you are not satisfied you then send your complaint in writing to NIB’s Service Recovery Manager at the Executive Office in Tallaght. Your complaint will be fully investigated and a “Final Response” letter will be issued. AFAIK the Ombbudsman will not entertain your complaint unless you have, or made every reasonable effort to get this letter.
 

Tomorrow

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187
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

I will be contacting the branch tomorrow to get the complaint process started.

I have a feeling, though, that it will do no good.

Thanks for your help
 

SligoInvest

Registered User
Messages
12
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

I am furious about this. Have checked my account and it has been renamed (a done deal when the letter came) and the last ECB cut not passed on.

THis is shameful. I went with NIB on this becuse of the home loan rate.

What infuriates me most is that stupid letter from NIB that there is no change - just a name change and that we will be able to read the rates more easily in the paper!!!

Such rubbish. How stupid do they think we are. If they were more honest Id appreciate it. Getting the run around from the bank all week.
 

DingDing

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269
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

I think I will pass the whole mess on to my Solicitor who handled the property transaction.
 

Tomorrow

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187
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

I spoke to my branch manager today.

She was not aware of this situation.

Head office asked all branches to supply them with a list of investment mortgages, which she did.

I have told her that I will be starting a formal complaint process.

She has asked me to leave it with her for a couple of days before I do.

I am fuming with this decision and I told her so.

Tomorrow
 

DingDing

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269
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

The Sligo branch were not aware of it initally also.
 

Tomorrow

Registered User
Messages
187
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

The bank manager came back to me this morning.

She spoke to head office and they are confident that they are within their rights to do this.

They have consulted with their legal team.

When the mortgage application was completed we put that it was for an investment property.But at that time there was only one variable rate available from NIB, and this was the one I signed up for.

I will now lodge an official complaint. But does anyboby know if there is even a small chance that this will be changed?

Thanks
 

SligoInvest

Registered User
Messages
12
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

Yes same as myself.
Im drafting a letter to the bank and then I going to the Ombudsman. Dont know how it'll go but worth a try.
 

Bronte

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14,165
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

The bank manager came back to me this morning.

She spoke to head office and they are confident that they are within their rights to do this.

They have consulted with their legal team.


Thanks
I would not accept this as an answer, "we've asked the legal team and they say it's ok"

I would ask "On what basis does the legal team say it's allowed. Show me the clause in my contract that says it can be changed."
 

DingDing

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269
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

Anyone get anywhere with this ?????
 

twofor1

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Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

I got nowhere with my branch so in line with the complaints procedure in my terms and conditions I put my complaint in writing to the Manager at Service Recovery.

He has acknowledged my complaint in writing, and states he has arranged for the matter to be investigated.

He will respond when these investigations are complete, and in any event within the next 20 working days.
 

Tomorrow

Registered User
Messages
187
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

The bank manager called me yesterday.

She has received my letter of complaint and it now has to go through the system - but I should have a final response by 31 March.

She has said that there have been no other compaints in this region (Donegal), but there have been several in Dublin.

Tomorrow
 

DingDing

Registered User
Messages
269
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

Just checking if anyone got anywhere with this, either with the Bank or the Regulator.
 

Tomorrow

Registered User
Messages
187
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

I just got a letter from my branch saying the the complaint has been passed on and I would receive a reply by 29 March.

Anybody else have any luck?
 
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