# KBC  Split Mortgage - Redress Query



## LCYEATIN (10 May 2018)

Hello. 

I received my redress from KBC this week, and i have a query relating to the split. 

(figures approximated) 

Mortgage €350,000 
of which €200,000 eligible for tracker and €150,000 on standard variable

Split 50:50 in 2014 - so €175,000 warehoused and €175,000 on repayment 

KBC advise that when they split the mortgage they warehoused the largest 'deal product' first 
ie they warehoused €175,000 of €200,000 tracker.

So post-tracker redress on the repayment mortgage I have only €25,000 of tracker and €150,000 on SVR (seperately I fixed for 5 yrs a couple of years ago and it appears that KBC have dropped the 5yr fixed and put Deal product 2 onto SVR as part of redress?)

Now none of this has been transparently provided by KBC and it is only on challenging their numbers have I been able to make sense of the maths post-redress.

This inequitable split impacts the redress calculation (since 2014) along with the current position.

I would have anticipated, on the basis of fairness, that the split should have been between both deal products and i should have c.€100k of tracker across both the repayment and warehoused parts of the mortgage.

I would appreciate any thoughts and comments on what KBC have done here as I believe that this is worthy of a strong challenge via the Appeal process?


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## peemac (11 May 2018)

I don't know about "warehoused" mortgages,  but surely they are still payable, just that the payable amount is deferred and interest still accruing? 

Maybe it's different to that?


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## Brendan Burgess (11 May 2018)

Hi LC

Your story is interesting, but very confusing. 

Could you set it out in chronological order as it happened . e.g. 

2014 Had €350k SVR - split as follows: warehoused €175k and €175k repayment
2016 - fixed repayment bit for x years at y% 
2017 KBC acknowleged that €200k of mortgage should have been on tracker - I accept that €150k was on SVR 
2017 Received €225k redress ( Seems very high) 
2018 Total mortgage now  €175k - €150k SVR and €25k tracker


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## LCYEATIN (12 May 2018)

Hi @peemac - the warehoused portion of the split with KBC is deferred, but no interest is charged/accrued. So KBC effectively ended up warehousing the tracker. Though this only became apparent post-redress.

@Brendan Burgess will try to clarify the confusion

2014- €350k split - €175k repayment @ SVR & €175k warehouse @ 0%
2016 - fixed €175k repayment @ 5 yr fixed - €175k warehouse @ 0%
2018 - Redress
(i) advised that €200k of original mortgage should have been 0.95% tracker
(ii) overpayment of interest repaid via redress (& compensation, legal fee etc)
(iii) overcharge of interest reduced mortgage balance equally across both warehouse & repayment
(iv) Repayment Portion now €25k tracker & €150k SVR (lost 5 yr fixed from 2016 which is <2018 SVR) & €175k remains warehoused @0% *

*I have not included the specifics of the redress and/or the reduced mortgage balance post-reduction of overcharged interest to protect anominity 

Basis of the query with the forum is that KBC, when splitting the mortgage, effectively warehoused the tracker. Whether this was deliberate or inadvertent, we will never know. 
However in the spirit of redress and fairness, it appears incongruous. 
I assumed that the benefit of the tracker would have been split across the mortgage (ie of the €200k tracker - at least €100k of the repayment mortgage would be on a tracker post-split/redress)

I would like to ask 
(i) if any other KBC split mortgage & tracker redress impacted customers have found that their tracker portion ended up mainly warehoused?
(ii) any other views on the challengeability via appeal or otherwise.


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## Brendan Burgess (12 May 2018)

This is really frying my head.



LCYEATIN said:


> (iv) Repayment Portion now €25k tracker & €150k SVR (lost 5 yr fixed from 2016 which is <2018 SVR) & €175k remains warehoused @0% *



  If these numbers are correct, then the balance today after the redress is as follows

€150k SVR

€200k Tracker

€350k total 

But how can that be? 
1) You should have reduced the balance through capital repayments since 2014 when the balance was €350k
2) They allocated some of the overcharge against the warehouse. 

A) How much were you overcharged in total?
B) How much of a refund did you get - excluding compensation?
C) How much was the balance reduced by? 

Brendan


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## dvshah1974 (21 May 2018)

I have similar problem but I split my mortgage into fixed and variable in 2011. They have restored both portions to tracker but only given redress for variable part. Fixed part which was for 2 years between 2011 and 2013, KBC is yet to refund overcharged interest etc.. Is there any legal issue why KBC is not giving that?


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## LCYEATIN (21 May 2018)

@Brendan Burgess KBC 
I was trying not to provide specifics for fear of personalising and possibly prejudicing my appeal.
Generally though, i received compenstation for overcharge, and balance was reduced. 
Due to the split, the balance was reduced (across warehouse&repayment) more than the compensation recieved (due to overcharge), which is both fair and reasonable.
The balance was reduced 50:50 across the warehouse and the repayment mortgage.

However, none of the above is really relevant to the question, which was... when KBC split the mortgage (4 years before the redress), they warehoused the majority of the tracker mortgage, though they claim that they were not aware that that deal product was a tracker at the time (which does not appear fair or reasonable now).
In addition, i fixed the entire (of the repayment part) about two years ago at 5 year fixed at <4%. However post-redress - the non-tracker portion is now on a 5 year fix (to Apr'22) @4% - which is not the terms i fixed at in 2016.
I would have thought the split, when split was 50:50 - it doesn't seem fair and reasonable that I warehoused (and agreed to same)  the majority of the  tracker  - and was not aware/advised of this by KBC at the time.
In addition, i find it strange that I have entered into a new 5 year fixed, ending in 2022 - at a higher rate than i fixed previously in 2016 - without consenting/signing to same


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