# BoSI inviting people on interest only to review their options



## cremeegg (17 Mar 2014)

Update on BOSI cheap tracker.

Despite my previously declared intention to write to Certus making them an offer to pay off my tracker, I have not actually done so.

Partly because I am a lazy sod and partly because I could not decide on a plan that I really believed in.

Brendan suggested that I would need to be offering around 90%. Well I would not be interested at that level.

Others had suggested 30%. That would be nice, but it is hardly credible.


*So to the update.* 

Last week I got a letter from them. Headed "Important information about repaying your interest only full term mortgage"

They outlined 5 possible options 

. Changing your interest only mortgage to capital and interest repayments.
. Changing a portion as above
. Making overpayments
. Making lump sum payments
. Other options may be available depending on your financial circumstances

Not the most clear cut letter I have ever received, but it is interesting to see that they seem to becoming interested in these loans.

Any ideas what, "Other options may be available depending on your financial circumstances" might mean.

Does it mean if you are in deep trouble we might give you a break, 

OR

does it mean if you can afford to redeem the mortgage we might give you a discount.

Any insights welcome


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## Brendan Burgess (17 Mar 2014)

Hi Cremeegg

That is very interesting. 

Do you not have the option of doing nothing?  I would love to see a copy of the letter if you would be prepared to email it to me at brendan at this site. 

Brendan


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## Commercial (17 Mar 2014)

Other options line is very vague. There are many many options. Trade down, voluntary surrender, part payment etc. Again they are currently not doing write downs on lump sums received where the Borrowers remain in the house. I could be wrong, but I haven't seen it happen.
They have however recently sold 2,000 distressed mortgages to a fund. It will be interesting to see what they do


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## TRS30 (18 Mar 2014)

cremeegg said:


> Update on BOSI cheap tracker.
> 
> Despite my previously declared intention to write to Certus making them an offer to pay off my tracker, I have not actually done so.
> 
> ...



Hi Egg

Very interesting. Are you in arrears? Is the interest only loan on a PPR or BTL? 

I have a 30 year interest only loan on a BTL however have not received any letter.


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## Brendan Burgess (18 Mar 2014)

Commercial said:


> Other options line is very vague. There are many many options. Trade down, voluntary surrender, part payment etc. Again they are currently not doing write downs on lump sums received where the Borrowers remain in the house. I could be wrong, but I haven't seen it happen.



I don't think that cremeegg is in arrears?


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## Commercial (18 Mar 2014)

Other options depends on his financial circumstances.
Apologies, I should have made myself clear. I mentioned options based on poor financial circumstances.
I wouldn't be sure of what other options would be available if his financial circumstances were fine. If they were fine, the bank would say continue to pay IMO


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## cremeegg (18 Mar 2014)

There are two properties, both similar. The mortgages are interest only, ECB + 0.75% for 19 more years. Both properties are buy to let. 

There are no arrears. They are both rented and easily cover the IO repayments. The rent would not cover a full repayment mortgage on either. 

Both properties are in negative equity. One would sell for about 85% of the loan, the other about 50%

My financial circumstances are fine at the moment, however I have four children who I am hoping will start college over the next few years so a big expense in the offing. My own earning power is probably not increasing. I would be able to gather the cash to redeem these mortgages at a certain level.

Previously I contacted BOSI with a view to redeeming either or both mortgages and asking for a discount. They said that they would not make any offer, but if I put an offer to them in writing they would respond. That conversation was about 2 years ago, I did not actually make them any offer.

Since then nothing, though I see from the press that they sold non-performing loans to some fund.

Now I get this bizarre letter, which basically seems to say that I have an option to pay them more money than I am contractually obliged to. 

It seems to me that having sold the non-performing loans, they have now turned their attention to the performing loans. 

I am hoping that this is only an opening offer and something worthwhile may come along later.


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## TRS30 (18 Mar 2014)

Thanks egg for the reply. 

I'm in a slightly similar situation in that I have one BLT (and one PPR on C&I) on a 30 year IO at ECB +1.5%. 

I wonder if they have started with the loans with the lowest rates.


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## Brendan Burgess (18 Mar 2014)

Here is the text of the letter 

*[FONT=&quot]BANK OF SCOTLAND
[/FONT]*[FONT=&quot]Retail,  Mortgage   [/FONT][FONT=&quot]&  [/FONT][FONT=&quot]Private[/FONT]  [FONT=&quot]Banking   Operations Lloyds  Banking   Group 
PO Box  1717[/FONT][FONT=&quot]
Pentland   House[/FONT][FONT=&quot]
8 Lochside   Avenue[/FONT]  [FONT=&quot]
Edinburgh, EH129DJ[/FONT][FONT=&quot]

1st March  2014[/FONT]  
​ 
*[FONT=&quot]Important[/FONT]**[FONT=&quot]  information about repaying your Interest Only Full Term Mortgage[/FONT]* 
  [FONT=&quot]Dear  Mr  [/FONT]

  [FONT=&quot]Each year  you  receive   an annual   mortgage   statement   which   informs   you  of the transactions   on your[/FONT] [FONT=&quot]Mortgage   Account   over  the  previous   twelve   months.[/FONT]

  [FONT=&quot]In line  with  the  terms   and  conditions   on your  account,   you  agreed  to  make  repayments   on  an interest   only basis  for the  full  term  of your  mortgage.   Interest   only  mortgage   repayments                means  that  you  are  only repaying   the  interest   on your  account   over  the  term  of the  mortgage.   No capital   balance   is being  repaid   by you  and  once  the  term  expires,   the  Outstanding                                        Balance   will  become   due  and owing.[/FONT]

  [FONT=&quot]We  recommend   that  you  review   your  financial   arrangements     regularly   with  your  broker  or  an independent financial   adviser   in order  to  ensure  that  you  will  be in a position   to  repay  the  Outstanding                      Balance   owing  at the  end  of your  mortgage   term.[/FONT]

*[FONT=&quot]What[/FONT]**[FONT=&quot]are[/FONT]**[FONT=&quot]your[/FONT]**[FONT=&quot]options?[/FONT]*

  [FONT=&quot]If you  have  not yet  considered    how  you  intend  to  repay  the  Outstanding     Balance   owing  on your  Mortgage Account   or your  repayment                            plan  is not on track,   please  contact  *Certus  in Dublin, on 01-2675818 *as soon  as possible   as there   may  be a number   of alternative                      options   available   to you,  including:[/FONT]
  [FONT=&quot]•           Changing   your  interest   only  mortgage   to capital   and  interest   repayments[/FONT]
  [FONT=&quot]•           Changing   a portion   of your  interest   only  mortgage   to  capital   and  interest   repayments    (part  interest only  part  capital   and  interest)[/FONT]
  [FONT=&quot]•           Making  overpayments[/FONT]
  [FONT=&quot]•           Making   lump  sum  payments[/FONT]
  [FONT=&quot]•           Other  options   may  be available   depending   on your  financial   situation[/FONT]

*[FONT=&quot]Are you already in financial difficulty with your current mortgage repayments?[/FONT]*
*[FONT=&quot]Please note - [/FONT]*[FONT=&quot]If you are currently in financial difficulty with your mortgage repayments and already have an[/FONT] [FONT=&quot]alternative repayment arrangement in place with the Bank, please continue to maintain your payments in[/FONT] [FONT=&quot]accordance with that arrangement.[/FONT]

*[FONT=&quot]Where can you obtain further advice?[/FONT]*
[FONT=&quot]If you are concerned about your ability to repay the Outstanding Balance owing at the end of your mortgage[/FONT] [FONT=&quot]term or you are experiencing financial difficulties, the Bank advises you to seek independent financial[/FONT] [FONT=&quot]and/or legal advice, and/or advice from your local Money Advice and Budgeting Service ("MABS") or an[/FONT] [FONT=&quot]appropriate alternative, prior to making any decision in relation to your Mortgage Account. MASS can also[/FONT] [FONT=&quot]offer guidance on budgeting and debt prioritisation.[/FONT]

[FONT=&quot]MABS may be contacted at [/FONT][FONT=&quot]www.mabs.ie [/FONT][FONT=&quot]or through their helpline at 1890283438.[/FONT]
[FONT=&quot]Information on State supports such as the Mortgage Interest Supplement and Mortgage Interest Relief may[/FONT] [FONT=&quot]be obtained from [/FONT][FONT=&quot]www.citizensinformation.ie.[/FONT]
[FONT=&quot]
Please note that the above Outstanding Balance figure is an indication only of the amount outstanding and[/FONT] [FONT=&quot]should not be regarded as a formal redemption figure. A full redemption statement can be requested by[/FONT] [FONT=&quot]contacting our retail contact centre on 1800556 583.[/FONT]

*[FONT=&quot]The Bank's Lending Terms and Conditions Apply,[/FONT]*
[FONT=&quot]Yours sincerely,[/FONT]
*[FONT=&quot]For and on behalf of[/FONT]*
*[FONT=&quot]Bank of Scotland pic[/FONT]*
  [FONT=&quot]
 [/FONT]


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## TRS30 (18 Mar 2014)

I just rang Certus on the above number. 

They have set up an Interest only team that are sending out these letters. The options they explained to me are pretty much as above. They did say to put any offer to them in writing and they and they will consider it. 

The girl I spoke to said they are very busy and have been getting a lot of calls on the back of the letters.


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## Brendan Burgess (18 Mar 2014)

Did you get the name of the woman you were speaking to? 

If you are in deep negative equity, it might be worth putting in a low ball offer. 

If you have interest only with 20 years to go, it's likely that the rent received easily covers the interest paid, so the negative equity is not too important. 

If your mortgage is €100k at 1% on a property worth €80k, you should not be surrendering it for just the write off of the shortfall. 


It would be different for a home loan, if there were some possibility that you might like to move house at some time in the future. You should be open to a 25% discount.  With an investment property where the rent covers the interest, there is no need for you to pay off the loan early.

Brendan


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## TRS30 (19 Mar 2014)

I spoke to a girl called Rachel, didn't get her surname. 

I would be interested in putting in my details to get people's thoughts however don't want to side track the thread.


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## Brendan Burgess (19 Mar 2014)

TRS30 said:


> I would be interested in putting in my details to get people's thoughts however don't want to side track the thread.



Then start a new thread?


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## TRS30 (23 Jun 2014)

I received a letter on Friday similar to Cremeegg. 

Has anyone discussed with BOSI and put a proposal to them?


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