Ulster Bank error in 2013 capital shortfall

Lorry

Registered User
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Good afternoon
Earlier this year Ulster Bank had a systems error whereby interest only investment mortgages did not switch to capital and interest after a specified time as per the mortgage contract. For example an investor took out a mortgage and was charged interest only for the first 5 years and then after this time the mortgage was due to switch to capital and interest. However due to a systems error the mortgage never reverted to capital and interest after 5 years and the investor continued to pay interest only until Ulster Bank discovered their error and then sent letters stating that the mortgages would switch to capital and interest. In some cases the capital shortfall was over 20k. I know Ulster Bank offered 4 solutions- did anyone take a case to the Ombudsman?
 
If Ulster offers 4 solutions , it may be that 1 is suitable.
There is no case for Ombudsman here unless and until matters are not resolved via Ulster.
If Ulsters solutions end up not fair, Ombudsman may then have an input.

Long way to go yet.
 
However due to a systems error the mortgage never reverted to capital and interest after 5 years and the investor continued to pay interest only until Ulster Bank discovered their error and then sent letters stating that the mortgages would switch to capital and interest. In some cases the capital shortfall was over 20k. I know Ulster Bank offered 4 solutions- did anyone take a case to the Ombudsman?

Lorry we had a poster with exactly the same problem on here a while back. He didn't go to the Ombudsman, and he couldn't pay back capital, ultimately what happened to him is that the bank just ignored him and he continued to pay interest only. You'll have to search to find it as I cannot remember the poster. He came back more recently with the current situation.

Can you afford capital and interest? Or what can you afford. If it's interest only, when is the mortgage term up and what is your solution then?
 
I had a similar problem to Lorry, but I noticed it after six months, UB ignored it and sent me 2 bottles of red wine (I only drink white). 18 months later they came back with the 4 options, I opted for a payment break (which was allowed in the contract) and then the repayment over the original term plus interest free on what they didn't collect. I am now paying 25% more on what I would be paying if they hadn't made the mistake. This is unsustainable for me, but I do not want to lose my tracker. I want to restructure, most people I talk to say they won't or I will lose my tracker. Does anybody think that some of the concepts in the URL posted by Raging Bull (uncollected amounts can be written off if the whole thing is their fault) can be used in an argument to restructure. Comments would be appreciated
 
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