Underfunded BOI
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There is no loss so why would there be compensation?I was coming to the end of my 20 year mortgage but it was underfunded ( the bank consistently debited the incorrect amount). I complained and the bank explained that it was due to their system not being able to calculate weekly mortgage but no offer to compensate. I am now left with an outstanding balance. Anyone run into similar trouble?
Will clarifyAre you saying that the weekly mortgage payment should have been €400 and they charged you €300?
You knew this but didn't up the payment yourself? So you knew that your mortgage would not be cleared.
The banks normally set up a monthly payment, so presumably you requested a weekly payment and they facilitated you.
You haven't lost out so you shouldn't be getting any compensation.
Assuming I have understood you correctly.
Brendan
Or the weekly mortgage payment should have been €387.96 and the bank took €378.96. Would you have spotted the difference, which approximates to €3,000 weekly over 6 years.Are you saying that the weekly mortgage payment should have been €400 and they charged you €300?
You knew this but didn't up the payment yourself?
mine was a weekly mortgage for the last six years or so of the term
There was no loss but I was left with an unexpected ‘balloon’ payment at the end of my mortgage term. We had made financial arrangements based upon the mortgage being paid within term. Instead of a few extra euros per week over many years there was an outstanding balance of 3k at the end of mortgage term. The technical term is ‘underfunding’There is no loss so why would there be compensation?
you man remember maybe 2013 or so , Irish times consumer page advised changing to weekly mortgages as there would be a saving compared to monthly repayment ( am not sure there is). I applied to BOI and was changed to weekly and thought no more about it. Got a letter from BOI in late 2021 saying my mortgage may not be paid off in full (term ended August 2022). When i contacted BOI they were unable to put an exact amount on the shortfall that would remain at the end of term. On the phone at one stage they said 16k but the eventual sum was just over 3k. Isuspect everyone on weekly mortgages with BOI will have an outstanding balance when term ends. Just was wondering if anyone else was out there in the same situationWhy was it put on weekly payments if they couldn't calculate them?
Brendan
you man remember maybe 2013 or so , Irish times consumer page advised changing to weekly mortgages as there would be a saving compared to monthly repayment ( am not sure there is)
There isn't. Or nothing material.advised changing to weekly mortgages as there would be a saving compared to monthly repayment ( am not sure there is).
There isn't. Or nothing material.
The "saving" is if you make quarter of a monthly repayment every week, you're actually making the equivalent of 13 monthly repayments in a year, so you pay mortgage off quicker.
What's the 3k in relation to the original mortgage? It's difficult to calculate an exact weekly repayment, but 3k sounds like a lot.
Or, was your monthly repayment, say, €1,000 but you were making weekly repayments of €250? In that case, even if their system couldn't give you any benefit for weekly repayments, you would still have been paying 52 x €250 = €13,000 instead of 12 x €1,000 = €12,000. You probably need to clarify with some actual or representative figures.
It might be worth raising with the Ombudsman. Maladministration.
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