# Ulster Bank reduced my rate, but increased my repayments



## Bgirl (2 Apr 2016)

Apologies if this is wrong forum. We recently received a letter from UB advising us that the rate had decreased but our repayment has gone up. How can this be? Is it an error?


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## Gordon Gekko (2 Apr 2016)

Do you get Tax Relief at Source ("TRS")?

The repayment that they quote may be prior to the deduction of TRS.


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## Bgirl (2 Apr 2016)

No TRS applicable.


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## Cervelo (2 Apr 2016)

Its a "Point in time calculation", every time there is a change in the interest rates banks do a recalculation in your payments so as to make sure your mortgage is paid in full by the end date. This is done on all mortgages especially those that have had any restructuring like interest only period, missed payments etc. etc.


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## Bgirl (2 Apr 2016)

In my case the only thing different about the mortgage is that I pay the annual repayment in ten months rather than twelve. No restructuring, missed payments or otherwise. I'm coming near the end of the term so perhaps it's to ensure its repaid on time.


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## seosamh99 (2 Apr 2016)

I have a similar issue and appear to have similar circumstances to Bgirl. Yesterday April 1st (appropriate), I got a letter from Ulster Bank, informing that ECB had *decreased* rates from 0.05% to 0.00% and accordingly my monthly repayment would change by + €8.40 (*increase*). I checked my feeder bank account and, yes, the increased amount had been taken out a few hours earlier. I rang UB to query the reason for the change and was asked if I had been in arrears. When I said that I hadn't, I was asked to hold whilst she would speak with a 'member of management'. When she reverted several minutes later, she said that they had no idea why the repayment amount had been increased and offered to get someone to get back to me. Whilst she was very polite and understanding, I asked that my query be reclassified now to a complaint as follows:

ECB decreases rate, UB increases payment without explanation. Not acceptable
Notice of new rate arrived on 1/4/2016 several hours after the unilaterally-declared increase had been taken from my bank account. Not acceptable.
On making contact by phone, no explanation is available and call lasts (including answer time and hold time) 28 mins on expensive 1890 line.
I asked for a member of complaints to revert by close of business (time of request 930 a.m.) but this did not happen.

Am I missing something very obvious or have the great computer systems (programmed by real people) of UB cocked up again and increased all tracker mortgages when ECB have implemented a decrease? I would love to hear if there are others with a similar experience or even if someone who could explain that there is a good reason for UB's actions. Maybe it's as Cervelo explains but I have my suspicions especially when they were not able to offer a reason despite chewing over it whilst I was on hold.


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## Brendan Burgess (2 Apr 2016)

This seems so odd that there would be a few of these.

* BoI Mortgage rate cut, but repayment rises?*

Ulster Bank has made TRS errors before 

*Ulster Bank Made Mistake with TRS. Increasing repayments on our tracker*

The only reasons I can think of for this would be:

Recalculation due to arrears or rescheduling
A change in TRS

If neither of these




Bgirl said:


> I'm coming near the end of the term so perhaps it's to ensure its repaid on time.



That should have nothing to do with it.


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## Lightning (3 Apr 2016)

I would guess that a system error is the most likely cause. A lot of computer systems don't like zero as a base rate, it might be causing some issues or it is just Ulster Bank systems acting up yet again. 

Ask your bank to give the full calculation breakdown of how they are coming up the new payment amount and a breakdown of the prior payment amount calculation.


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## poppy1 (3 Apr 2016)

We have the same prob with UB, they are a joke I'm sick of complaining. Our mortgage went up nearly 200 euro on Feb 1st I rang and logged a complaint still waiting for an explanation. Then get the letter about de decrease and ours is -.48 cent. Which is a bit strange


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## Bronte (4 Apr 2016)

seosamh99 said:


> I asked for a member of complaints to revert by close of business (time of request 930 a.m.) but this did not happen.
> 
> Am I missing something very obvious .



I get such deja vous on this.  What's obvious from my many years of dealing with them is that they hire people on the phones to be incompetent, to not give you an answer, to not call you back, to keep you on hold so you give up and eventually you'll be told it's a 'system's error' which is always in favour of the bank.


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## rameire (4 Apr 2016)

its due to the point at which the rate change was keyed to the mortgage.
if the rate change was keyed just after the interest was applied to the mortgage and before your repayment was to be paid off it the balance of the mortgage is going to be higher by a small amount, and this can have an effect on the repayment that is due.
the knowledge of when the term changed on the mortgage will also have an effect on the repayment.
one day you could have a term of 60 months and the next day you have a term of 59 months and the balance is the same so the recalculation of the repayment on the same balance but a different term remaining whill have an effect.


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## SABB3301 (4 Apr 2016)

I have just received a letter from my lender stating that as a result of the ECB reducing its rates my mortgage repayment was being reduced from €1350 /mth  to €1500/ mth. In 2014 I capitalised arrears of approximately €20,000 and extended the term if the mortgage after a significant struggle. 2 questions - does it seem odd that if the interest rate falls my repayments go up? Am I missing something in my understanding of what I signed up to when we capitalised the arrears? I thought that the arrears were added to the mortgage and were paid off over the extended term? Is a different interest rate applied to them?


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## Brendan Burgess (4 Apr 2016)

Which lender? 

Brendan


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## SABB3301 (4 Apr 2016)

Ulster  Bank. Went to branch this lunchtime they cant understand the correspondence.


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## Brendan Burgess (4 Apr 2016)

I have moved your posts to this thread.  It appears to be a systems issue

Brendan


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## SABB3301 (5 Apr 2016)

seosamh99 said:


> I have a similar issue and appear to have similar circumstances to Bgirl. Yesterday April 1st (appropriate), I got a letter from Ulster Bank, informing that ECB had *decreased* rates from 0.05% to 0.00% and accordingly my monthly repayment would change by + €8.40 (*increase*). I checked my feeder bank account and, yes, the increased amount had been taken out a few hours earlier. I rang UB to query the reason for the change and was asked if I had been in arrears. When I said that I hadn't, I was asked to hold whilst she would speak with a 'member of management'. When she reverted several minutes later, she said that they had no idea why the repayment amount had been increased and offered to get someone to get back to me. Whilst she was very polite and understanding, I asked that my query be reclassified now to a complaint as follows:
> 
> ECB decreases rate, UB increases payment without explanation. Not acceptable
> Notice of new rate arrived on 1/4/2016 several hours after the unilaterally-declared increase had been taken from my bank account. Not acceptable.
> ...


I have had exactly the same issue. Received a letter last Friday 1st April (_after the repayment had been taken from my account_) which had been dated 21st March. I was informed that the rate had decreased but in fact my repayment increased by €154 / month.
Similar response when eventually made contact by phone - have also submitted a complaint and am awaiting response. This is not my first issue with UB cannot understand how they continuously make such mistakes.


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## MiseÉire (13 May 2016)

Hi,
Just wondering if anyone has an update on this? My brother in law has seen his repayments to UB rise by €55 a month following a reduction in his tracker rate. Following a query by phone he received a vague letter (that contained a number of spelling errors) saying that because he had decided to withdraw an overpayment of interest in 2014 that his payment had now increased. I dealt with the bank on his behalf at that time and he was given his tracker back and did take the overpayment back as cash. Since then his payments were roughly the same every month until he got notification that his rate was reduced but his payment was to increase by €55 a month. I have written to the bank for him asking that his query be reclassified as a complaint and asking for a full explanation and a breakdown of how the increase was reached. Would be interested if anyone from this thread has heard anything in recent times. Thanks.


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