# BoS Mortgage Query



## BlueFrog (21 Feb 2012)

Myself & my Dad purchased a property in 2006 for €420k. The loan was structured as follows: 


The family home was re-mortgaged at €135k (9yr term)
A mortgage for the new property was set up for the balance, ie €285k (15yr term)
The mortgage was set up as a pension mortgage on a tracker rate with BoS. Both of us are self-employed.

The short mortgage terms were structured, I think, on account of my Dad's age (around 60 at the time).

My concern is that we will be liable for the first €135k repayment very shortly and I want to see what options are at my disposal.


I havethree questions:

Can I extend the loan terms out and still maintain my tracker rates or will this constitute a breach in contract where BoS will force me to renege my tracker mortgage and go on a variable/fixed rate term?
Is there scope to argue that the bank was negligent in lending the money on such a short mortgage term in the first place?
Given that BoS want to pull out of the Irish mortgage market, should I try and haggle a repayment deal with them?
I'd appreciate any pointers/experience anyone can provide.


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## Jonny (6 Mar 2012)

Talk to http://certus.ie they are handling all BOSI admin. work  They will listen & I have always found them both helpful & realistic


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## 44brendan (6 Mar 2012)

Forget the negligence issue. That's just not a runner.
 Contact them as per the above post. Yes, if you have something to offer that will clear a predominant amount of the debt, this would be listened to.
Extension may be the only potential option, although the Bank are not really interested in long term arrangements. LTV is an issue. What is the property currently worth v's the loan?


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## Commercial (6 Mar 2012)

Can I extend the loan terms out and still maintain my tracker rates or will this constitute a breach in contract where BoS will force me to renege my tracker mortgage and go on a variable/fixed rate term?
BOS should offer you am extension, but only for 6 months, maybe 12. In the recent past your tracker was not affected, but this could change 
      2. Is there scope to argue that the bank was negligent in lending the money on such a short mortgage term in the first place?
No 
      3. Given that BoS want to pull out of the Irish mortgage market, should I try and haggle a repayment deal with them?

The only deal you could haggle with them is by either a) selling the properties or refinancing them with another financial institution. You could submit a proposal to reduce your repayments while you are trying to refinance or sell.


Certus can be helpful, but like all Banks it depends what individual you are dealing with.


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## bankbattler (7 Mar 2012)

*receivership appointment*

Hi 
I wonder could anyone help me out with an issue I have with receivers being appointed. Myself and my husband have had receivers appointed to our residential investment properties by Bank of Scotland. O

The receivers were appointed pursuant to a  Scottish Court of sessions order, but we and all our properties are in Ireland, so is this a valid appointment? are they acting outside their jurisdiction? 

Also Bank of Scotland have put substantial over-payments by us off the arrears on our mortgage accounts without notifying us prior to this, and and even though this reduced the arrears quite considerably in some cases, they appointed the receivers three weeks later. 

We've registered our complaint with Certus, Bank of Scotland, and the receivers, stating the issues outstanding and to cease all processes, to no avail, some of our properties were sold. 
We now wish to lodge an injunction to halt the complete process and gain a foothold to at least negotiate terms ....any advice on the best way to proceed, bearing in mind we have no financial means to pay for legal representation.


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## Jonny (7 Mar 2012)

Its important to note that Certus are not a bank BOSI have outsourced their administration work on existing buisness in the Irish market to them. The proposal goes to them & they pass it on for decision to UK based BOS underwriters


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## Commercial (7 Mar 2012)

First of all the appointment is valid I am sure. 
I don't understand the over payment of the arrears. Can you explain further.

At the end of the day what are you hoping to negotiate successfully for? Have you the means to pay the mortgages or refinance them?


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## csirl (7 Mar 2012)

bankbattler said:


> The receivers were appointed pursuant to a Scottish Court of sessions order, but we and all our properties are in Ireland, so is this a valid appointment? are they acting outside their jurisdiction?


 
Did they apply to the Irish courts to have the order enforced in Ireland?



> Myself and my husband have had receivers appointed to our residential investment properties by Bank of Scotland. O


 
What way are the properties held by you - what is the commerical entity in charge of the business? i.e. limited company, personally, limited partnership etc?


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## bankbattler (7 Mar 2012)

@commercial - re the overpayments, BOS discovered that due to and 'internal systems error' we had made significant overpayments on our monthly payments over a period of time, which ccame to a fairly substantial amount. However they didn;t inform us of this until the overpayments (about €20k) had been put off the arrears on some of our accounts, in fact our statements show that the accounts were credited 2 days before the letter informing us about the overpayments was even sent to us! I've since discovered a thing called the 'set-off rule' whereby banks can set a credit off one account against a debit on another account, but they can only do it with CURRENT ACCOUNTS, not loan/mortgage accounts.  So what they did was illegal! They also moved the receivers in less than three weeks after doing this. The overpayment amount would have made a big difference to how we approached dealing with the situation. 

@csirl, no they didn't apply to theb Irish courts, they simply put the properties up for auction and despite numerous requests on our part to cease all receivership processes, in light of the outstanding issues, they continued, sold 3 of our properties, and we feel that our only option is a High court injunction.


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## bankbattler (7 Mar 2012)

we hold them as investment properties, not as a company, they are in both our names.


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## Commercial (7 Mar 2012)

OK. I see the issues in the fact that the overcharged you. Would you have been able to pay the repayments if you weren't overcharged?
Can you afford to meet the remaining repayments now?

I am sorry if I am appearing cruel here, but if you are in arrears and have no ability to meet P&I repayments, maybe it is best to move on, unless your Private Home is involved.
Maybe there is more to this than I can see, but that is my honest opinion


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