PAC - People against Clawback (and related AH campaiging issues)

Re: Not able to change lender in AH

Some friends and a family member have purchased affordable homes and they were all aware of this condition. They purchased through Fingal and DCC so maybe some LA are better than others with their info.

Did any of you ask specifically about this? I don't think 'I was desperate to get on the property ladder' is an excuse not to fully understand what you are getting into.
 
i am in the process of purchasing an affordable home and i was also aware of this, thinking back though i was made aware of it by banks information that i read up, council had supplied no information of it. seriam was your post correct stating that if you sell your affordable house within 0 years (assuming that is within 12 months of purchasing it) you pay no clawback. i find this hard to beleive.

Is this organisation PAC against the clawback or against the fact you can not change lenders?
 
Re: Not able to change lender in AH

lightup said:
Some friends and a family member have purchased affordable homes and they were all aware of this condition.

Did any of you ask specifically about this? .
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How were they "well aware" if you dont mind me asking? Was it something that was specifically said to them by their bank or LA?
Also, if we were not aware of it how could we "ask specifically" about it? Of course i would have questioned it if id known, im not thrilled at the idea of being stuck with the same lender for 20 years!
 
Re: Not able to change lender in AH

swordshead said:
How were they "well aware" if you dont mind me asking? Was it something that was specifically said to them by their bank or LA?
Also, if we were not aware of it how could we "ask specifically" about it? Of course i would have questioned it if id known, im not thrilled at the idea of being stuck with the same lender for 20 years!
Click to expand...

In the case of my friends I cannot comment on how they all became aware of this fact, I think most just asked. I know at least 2 who purchased from DCC found out from their lenders in the information packs they provide.

In relation to my family member, I assisted them with their application with Fingal as they have limited literacy and so attended every meeting/read every form and was made aware that the mortgage cannot be moved from Fingal at several steps in the process.

At the first viewing of a property I asked the question 'Other than the clawback, is there any other differences between this and any other mortgage?' and their response was 'Yes, you cannot re-mortgage/change lender'.

At a later stage in the process I found their life protection offering to be uncompetitive and asked if it could be switched and was told no, and neither can the mortgage.
 
Re: Not able to change lender in AH

Lightup, its a typo error, it should be 20 and not 0 years.
 
Hi all,
P.A.C IS NOT against the clawback regarding the resale and profiterig. We are against all the other issuses like not being able to change lender.

For me personaly its not about % or consolidating. I have an issue that we are not happy with our lender DCC. OMG you wouldnt beleive the problems and to top things off we got a letter last friday saying we were in 1700 arrears, when i rang to sort it out i was treated appauling the way the guy spoke to me was a disgrace he also informed us it was now 2089 and that it had been accumilating since jan that we have been in arrears since jan this is nov!!!!! i ended up in tears for ages. Anyway its nothing of the sort its just yet another C*** up on their behalf im sick of them and to send people letters 5 weeks to xmas is bad especially that they were wrong. And when i asked there was a good few in our complex got the same letter and the same attatude when they rang.

Now realy if you were being treated by a bank/ morg institute like this theres no way you would put up with it and you can complain to ifsra we dont have this option so have to put up with any Cr** they throw at us!!!! We are not talking bout a once off here.

When we bought our homes there was no info packs and the legislation regarding the clawback was only at the early stages. We did not buy our homes from the council we were part of a local group building homes in our area to keep people in our area the only reason we had this clawback was the council wouldnt sell us the land onless we agreed to this, at that stage it wasnt in legislation. So the 2 women who were "in charge" agreed to this we had no choice. The council hadnt built in our area for 20 years there was a real shortage. Whan we asked would we be able to remorgage they said YES after a year and the people going shared ownership were told they could also change over at any time. But we never thought to ask for that in wrighting we beleived them and had no reason at that stage not to beleve them.

Anyone buying AH now are being made aware of the extra things that hadnt been mentioned in the past. But what gets me is that its not actually writen in the legislation and for us its not writen in our deeds or clawback pack!!!! What we sined was that if we sold we would have to pay the clawback, THATS IT nothing else. At the time of signing even our own solicitor beleived that we could remortgage. Because it wasnt writen anywere to state otherwise.


Hope this gives you some isight into why and how pack was set up

Sorry about spelling!!!!!
 
Re: Not able to change lender in AH

Hi tina,
i agree totally with everything you say. I agree absolutely with the clawback if i wanted to sell etc. but like that i bought my house off FCC nearly 6 years ago and there was NO mention of changing lender etc. I was fully aware of paying the clawback if i wanted to sell before 20 years and that's fine. I have checked every single bit of literature i received at that time and there's no mention of not being able to change lender without incurring the clawback. I have had a lot of problems too dealing with the Council over the years. We also can't change mortgage protection we are alll paying the same premium regardless of whether we are 25 or 45 and have health problems.
 
Re: Not able to change lender in AH

tina, thanks so much for the literature you sent i'm very impressed with all the work you have done. I will be sending a letter today to the Ombudsman. I'm not with DDC but with Fingal County Council.
 
Re: Not able to change lender in AH

Thanks for the feedback Rex, there is just the 2 of us basicaly running the whole thing and i tell ye its alot of hard work. But when you beleive in something so strong as we do its worth it.
Thanks again.
 
Re: Not able to change lender in AH: Up to 35 years is a long time to be tied to 1 le

Hi tina4,

I fully agree with the unfairness of not being able to change AH lender and commend you on your efforts to rectify this situation.

A similiar problem to this one is not being able to change mortgage insurance. (I have a AH mortgage and insurance with Cork County Council of 3 years standing). The mortgage % is not bad value but i find myself paying nearly 600 pa for mortage insurance when
the going rate for someone of my circumstances is more like 100-150euro pa.
 
Re: Not able to change lender in AH: Up to 35 years is a long time to be tied to 1 lender

Wouldnt have a clue about the mortgage insurance i thought that you could take your insurance out with anyone, but seems this is not the case. Can you pm me some details and examples and i will gladly add this to our list of priorities. Thanks for your nice comment its nice to get some positive feedback instead of the negative stuff like we should be greatfull!!!!! When i posted this on Daft ie and boards ie the comments were appauling i couldnt beleive it. There is real ignorance out there and i guarentee if these peolple were in our situation it would be a different story.
Thanks Tina
 
Re: Not able to change lender in AH: Up to 35 years is a long time to be tied to 1 lender

hi tina, i am puchasing an affordable home and today got copies of the contract in the post it states in these that i can remortgage my affordable home but have to first get permission from the council befor doin so. i was surprised by this as was under the impression i would not be able to remortgage at all. whether this is something new being addeed to such contracts though i do not know. i rang my solicitor who confirmed this for me and i asked why i would need to get permission and an example i was given was so that i could not benefit fron whatever price rises the property accumalates as the council needs to ensure if house is sold and mortgage is paid off there is enough money available for there clawback to be paid. basically should not be a problem to remortgage to avail of better rate from different lender. i totally agree with your arguments and hope your succesful in getting it sorted.
 
Re: Not able to change lender in AH: Up to 35 years is a long time to be tied to 1 lender

Hi Jasonia. That would be fantastic if they have changed it. But as far as i know the legislation would have to be changed first and this hasnt happen yet but im not 100% sure. Get your solicitor to confirm that you do not have to pay the clawback in order to change provider. Get your solicitor to get this in writing. This is were loads of people get caught because they read that they can change, and in fact anyone can change if they chose, but its not writen that in order to change the clawback has to be payed.If you dont mind me asking what council you are purchasing with? Best of luck and congrats on your new home.
Tina

A question to anyone who sent in letters to ombudsman, did anyone get a reply yet?
 
I have changed the title (again) to reflect the direction this thread has taken. Any problems let me know.

aj
 
Thanks ajapale, didnt know who was changing it i thought i could only do it. Thanks Tina
 
i think the thread title is misleading because i like most dont object to the clawback per-se, its the inlflexibility of the clawback and how i must repay it if i do change mortgage providors (which is not the intention of the clawback - to me its to protect the counclis investment on an early sale and cash in - which has happened in the past) but not allowing us to chose a better mortage on our homes is totally unfair and a situation that we were ever informed of - at what point did we agree and sign to this principle or it ita 'policy' that wouldnt stand up to legal scrutiny? while i know that those taking out a mortgage wit the council seemed to have been informed i was certainly not at any point and by any party told about this
 
Hi cmb,

Yes, there appears to be at least three seperate issues being discussed in this thread.
1)Clawback.
2)Inability to change provider.
3)Tina's AH Campaign. (called PAC but which appears to deal with other issues beside Clawback).

Do posters see any merit in splitting it out into three components?

aj
 
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