Was on an LTV rate with ptsb - but Start increasing this rate?

We were part of the Project Glas sale to Start a few years back but had sorted out our arrears before the sale . We had switched to a LTV MVR rate of less than 50% with PTSB .
They did not pass on the 0.1% reduction from July 2020 but now want to peg on 1.2% yet PTSB have not increased their LTV rates .
A letter of complaint on the way as advice received is that PTSB set our rates , many more may be caught in a similar trap , we expect it now to go to FSPO .
We however are not in dire stress with this as we only have 6 years to go and expect to clear the mortgage inside 4 years .

@CorkHome2022

You have raised a really interesting point.

This is what ptsb's terms and conditions were when you switched to an LTV MVR



You were told by ptsb that you would be on their <50% MVR for the remainder of the mortgage term.

I don't think that Start can change this term and condition unilaterally.

Their current MVR <50% is 3.6%.

What rate are Start proposing to increase your rate to?

Please remember to post Start's response here.
When you get a response, you should send your letter of complaint and the response to the Central Bank.

They will write back to you telling you to go to the Ombudsman. But they will investigate the issue. And if they agree with you, they will tell Start to fix it for everyone.

The Ombudsman, will take about 2 years to resolve it.

Brendan

Brendan ,
Thanks for the reply . Start just said they were raising the rate to 4.9% in line with their funding costs , this however is farcical as they bought the Project Glas Portfolio at a 38% discount . I suspect Start did not due proper due diligence . PTSB had reduced the LTV Rate in July 2020 and they did not pass this on , so they are already breaching the terms .
I had emailed them last week and paper copy to go in mail to them . I do not expect an acknowledgement of wrong doing so it will end up in FSPO .
As I said in my email to you we have 6 years left on our mortgage and expect to clear it in under 4 years so we can put up with this extra cost knowing we are in the right but I suspect that there are many out there will be looking at their new repayments with dread .

CorkHome2022 said:

this however is farcical as they bought the Project Glas Portfolio at a 38% discount

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You have a really good case here.

Don't get distracted by completely irrelevant points. Neither their funding cost is relevant to their argument nor is your comment on the discount relevant.

You have a contract with ptsb to give you the <50% rate.
That is clear cut.
The sale does not extinguish that.
That is the rate which Start must charge you.

Lots of these complaints are lost because one side or the other distracts the Ombudsman from the key point. Don't fall into that trap.

Brendan

Thanks as always for sound advice , I hope this helps other out there who were bundled up in theses sales .

I see that I raised this issue 4 years ago:

I expect this will go to FSPO for adjudication but from section 8 of the LTV conditions its the rate for the band as set by PTSB(The Bank) is the benchmark rate , I am guessing pretty much the same way the Trackers were linked to ECB rates and it was never foreseen that the rate would ever be 0% and costing the Banks money . We have the paperwork putting this LTV MVR in place and one of our last letters from PTSB specifically said "Mortgage Product LTV MVR 50 or less" When so many mortgages were bundled together I bet the due diligence could have been better and was not overly thorough as they may well have missed our locked in Terms and Conditions , plus in our mortgage conditions one could test exactly what the meaning of
plus this extract from PTSB info re sale top Start .

We can play the waiting game and go to FSPO on this , our arrears were sorted over 4 years ago and we are lucky that we now have a years worth of mortgage repayments aside for rainy day , we learned our lessons from the crazy days of the naughties and the payback when the crash happened.

CorkHome2022 said:

I expect this will go to FSPO for adjudication

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I doubt it.

It seems that Pepper does not have a leg to stand on.

They should admit their error and fix it promptly. They know that they won't get away with it.

When you hear back from them, send your file to the Central Bank. They won't get back to you other than to acknowledge it, but they will investigate Pepper and tell them to fix it.

Brendan

Brendan Burgess said:

I doubt it.

It seems that Pepper does not have a leg to stand on.

They should admit their error and fix it promptly. They know that they won't get away with it.

When you hear back from them, send your file to the Central Bank. They won't get back to you other than to acknowledge it, but they will investigate Pepper and tell them to fix it.

Brendan

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Don't they need to go through the lender's own complaints process and get a final response first before the CB or FSPO will even look at it?

They need to go through the lender's complaints process before they go to the FSPO.

But there is no need to go through any process to alert the Central Bank to what might be a systemic overcharging.

Brendan

Brendan , Start reply was to say the interest rate is a matter for them .
They also said this was their Final Response so it will go to FSPO in a few weeks when I have a few days off to put together a comprehensive complaint . Again back to due diligence Start should have been aware of our contractual rights as their Welcome letter said that those transferred as did the Goodbye letter from PTSB .

That is a pity that they won't admit it upfront. They are probably hoping that you will be too busy to stay the two year course with the Ombudsman.

Make sure to bring it to the attention of the Central Bank and not just the Ombudsman.

The Ombudsman will take about two years unless Start concedes early. But it's still important to go to the Central Bank for all those affected by it who are unaware of it.

Brendan

New letter today from Start , rate to go to 5.65% .
Have again written back to them highlighting the error that we had switched to a LTV MVR product and the current rate for that is 3.6% .
I also reminded them of their welcome letter that said "There is no change to the terms and conditions of your Loan" putting us on a Standard Variable Rate and not applying the LTV MVR rate is a big change of terms and conditions .
No other thing for it but to send it to FSPO , I know thats going to take time but we have built up a rainy day fund with a years worth of mortgage payments in it so we can play the long game .
Others out there cannot and will be in bother , it surprises me how quiet things are in respect of this given so many people were sold off to the funds in recent years.

An update , Have complaint gone to FSPO today , anybody else who was transferred to Start , Pepper or others and if ye were switched to the Managed Variable Rate Loan To Value check your terms and conditions and put in a complaint also .

Just to update , we got a letter today to say the rate is going to 6.4% from 5.65% from July 1st , again breaching our terms of the LTV Switch . Things gone a bit quiet out there regards the Vultures .

What happened with your FSPO case?

ClubMan said:

What happened with your FSPO case?

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Gone to the Investigation stage since March , have sent them in the new rate rise letter with a request to fast track same .
As per above extract from Brendan , Section 8 sets out the relevant rates for the PTSB LTV MVR bands , ours should be 3.6% as of todays PTSB website information .And of note in Section 8 to sum up any other rates including the ECB rate are not relevant to the individual bands so they stand alone and only PTSB set same .