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

Bronte

Registered User
Messages
14,165
That's wonderful news Ross. Well done. I would certainly hope that after this NIB would apply the same rules to all it's customers who are in the same situation as you. And that the ombudsman would ensure that this happens, without people having to fight individual cases.
 
N

nailer71

Guest
Hi all,
I have been following this thread very closely for a long time now, as i have both variable investment mortgage (3 yrs fixed aug 06-aug 09) and a residential home loan.
I recieved a letter from NIB yesterday informing me of a variable rate increase from Nov 11th 2011.Being honest i could see this rate increase coming a mile away.
What has spurrned me into replying is the following:
NIB have now made both variable investment mortgages(which i have) and variable residential mortgages the same rate = 4.44% APR. But you will recieve a discount if you take on their paid current account (How very generous of them!!)
Can anybody advise if i was to take my case to my branch/obudsman does this mean that if i won my case and NIB were instructed to repay me any overcharges on my investment mortgage, and return my investment mortgage to the homeloan rate,that they could then put my investment mortgage back to the new home loan rate of 4.44%??
The whole affair reeks of dishonestly and this seems to be to be a ploy by NIB to sort out a of their own making re:investment mortgages and increasing rates illegally.
Any opinions/advice greatlfully appreciated
 
N

nailer71

Guest
nib investment mortgage

Apologies to all for being vague.

I meant to say my original investment mortgage (3 yr fixed aug 06-aug-09) was changed in both name and rate by NIB from home loan investment rate to Investment rate of 4:15% Apr from Aug 09 til now.

I have been patient and wanted to wait til rates increased to take my case to NIB, and /or the financial ombudsman.
From following this thread i believe NIB have a case to answer in relation to my investment mortgage.
 

twofor1

Registered User
Messages
1,503
NIB have now made both variable investment mortgages(which i have) and variable residential mortgages the same rate = 4.44% APR.

I don’t think they have, that letter you got refers only to Variable Rate Home Loans from Nov. I’m sure there will be an increase in investment rates announced soon.

It’s a bit confusing from what you have posted but it looks like you always had an investment mortgage on an investment property so, unless your terms and conditions state you will be charged the home loan rate you have no argument.
 

Butter

Registered User
Messages
602
update on my situation - NIB HQ have accepted my case without having to involve the Ombudsman. Refund provided and monthly payments adjusted going forward. Delighted with this result and big thankyou to everyone here for the help. A special thanks to Butter for the terrific encouragement and guidance throughout the process.

You are more than welcome Ross. I am very glad that you had a successful result.
 

Butter

Registered User
Messages
602
I too received the letter that Nailer mentioned. My interest rate is to increase on the Variable Rate Home Loan (which my investment mortgage was changed to following the Ombudsman's ruling) by 0.95% which is a big increase in one go.

I wonder if the "Investment Loan Rate" is also being increased by the same amount or is NIB basically bringing all loans rates in line with each other? After winning my case and getting a reduction of 0.75% in the rate a couple of months later they raise it by 0.95% anyway. It seems that even when you win, the banks actually win!

Does anyone out there know if the Investment Loan Rate is being raised?
 

Bronte

Registered User
Messages
14,165
Butter, Matthew Elderfield is tackling banks that have decided to increase variable rates willy nilly. So I expect that any banks that have increased the rate much more than recent ECB rises will have their wings clipped and be expected to reduce rates 'if' as expected the ECB starts reducing rates.
 

biker

Registered User
Messages
10
Hi all,

apologies, long time since my last post on this, but have now concluded process with FO successfully, interest refunded by the bank, and no apology! thanks to all on AAM for raising this, and providing the guidance....
 

10amwalker

Registered User
Messages
125
How many have won their case with the FO

Hi,

Great to see yet another poster who has taken NIB on and won, with the interest being refunded.

Butter
Biker
Twofor1
Ross
Dingding
Any others ? please post

Greenoverred ?
Bronte ?
Tomorrow ?
Rasher ?

Considering the NIB decision today not to pass on the decrease in ECB rates to the variable mortgage holders a mail to the Financial Regulator may be in order... what do you think

10amwalker
 

greenoverred

Registered User
Messages
16
Hi,

Great to see yet another poster who has taken NIB on and won, with the interest being refunded.

Butter
Biker
Twofor1
Ross
Dingding
Any others ? please post

Greenoverred ?
Bronte ?
Tomorrow ?
Rasher ?

Considering the NIB decision today not to pass on the decrease in ECB rates to the variable mortgage holders a mail to the Financial Regulator may be in order... what do you think

10amwalker

HI Guys,

Still waiting on the FO to make a decision on this.
Ive been waiting 10 weeks now.

I was offered mediation but turned it down.

Ill let you know when its complete.

So is there any chance of the FO getting NIB to pay back all customers or does everyone have to make an individual complaint. If the FO cannot do this who can
 

twofor1

Registered User
Messages
1,503
So is there any chance of the FO getting NIB to pay back all customers or does everyone have to make an individual complaint. If the FO cannot do this who can

In many cases anyway, he does not appear able to do this. If he can’t I don’t think anyone else can. NIB and others take advantage of this.

The Ombudsman is proposing disclosing the complaints records of individual financial institutions.

This would be a massive incentive for financial institutions to deal with all such issues rather than the Ombudsman having to direct them to do so in individual cases.

I would be very interested in knowing exactly which financial institutions the Ombudsman is referring to with this comment;

‘’In reviewing the complaints record of the industry, I am struck by the very different record of some of our regulated financial institutions. Some institutions have relatively few of the complaints made against them upheld. Other institutions have complaints made against them upheld by a percentage far in excess of their industry peers’’

http://www.financialombudsman.ie/news-updates/pr.asp?ID=78
 

twofor1

Registered User
Messages
1,503
I wonder if the "Investment Loan Rate" is also being increased by the same amount or is NIB basically bringing all loans rates in line with each other? After winning my case and getting a reduction of 0.75% in the rate a couple of months later they raise it by 0.95% anyway. It seems that even when you win, the banks actually win!

Does anyone out there know if the Investment Loan Rate is being raised?

Their Standard Variable Rate of 4.15% (which includes existing investment home loans) has only increased by 0.2% to 4.35%.

As already advised by NIB the Home Loan Variable Rate of 3.40% has increased today by 0.95% to 4.35%.

http://www.nationalirishbank.ie/en-ie/Personal/mortgages/Buying-a-property/Products/Pages/variable-rate-mortgage.aspx?tab=2#tabanchor

Rates for PPR’s and RIP’s are now the same, but discounts are being offered on PPR’s via their Prestige and Easy Plus packages.

It is important to point out though, in my case anyway, since the Ombudsman’s ruling my mortgage is again a Variable Rate Home Loan, and as such would be eligible for these discounts.

I have to agree with you, even when you win, it seems the bank win. The home loan rate was .75% less, now it’s the same and to get the discount of 0.45% you have to pay €31.25 in quarterly fees for the Prestige package.
 

Tomorrow

Registered User
Messages
187
Yes, I got my interest refunded some time ago.
Only to be hit with an increase of almost €200.
I am totally devastated and agree that the bank will always win.

I have recently been called into the branch and offered a current account package which for a fee of €35 per quarter will save approx €1000 per year in the mortgage payments.

Cant say no now can I???
 

Brendan Burgess

Founder
Messages
44,659
This very interesting case has been summarised by twofor1 here. If you have a mortgage on an investment property with NIB, read it. - Brendan
 
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