# Compensation for Buy to Let repossessed & tracker incorrectly lost



## Harryseven (29 Apr 2017)

Hope this outline of genuine facts helps. I would also like comment on whether to appeal

We (myself and now ex wife) Bought Buy to let Property in 2005 with a 110,000 buy to let mortgage (interest only for a few years)

Ran into difficult with falling rents and poor tenants in 2012, I had also lost my job in 2012
Ran up about 15 months arrears over a 18 month period June 2012 to December 2013
Kept open communication with Bank, who suggested a restructure. I came up with a new rental strategy - to students for 9 months and short term summer lets - which would have averaged €600 per month however Bank said this wouldnt meet there minimum payment of 750pm (BTW, it turns out that the banks 'minimum payment' was an over charge of between 250 and 200 pm).

So Repossession in late 2013 and was sold by liquidator for 55,000.
Capital outstanding was 106,000 plus arrears plus penalties plus continuing overcharges....We paid nothing as I had no job, no rental income obviously, and we were going through a lengthy divorce
Contacted bank periodically for updates but heard nothing from bank and had been considering a move to England for Bankrupty purposes...then came the redress phone call...

Outcome:
Had been overcharged by 17,000 from 2008 to 2013
Penalties and arrears amounted to 31,000
Got 0 back for this

Recieved 1,300 for Time Value of Overchahgred Money I paid from 2008 to 2012

Recieved Legal advice bursary of 3,600

Received 50,000 Compensation cheque


Total 55,000 = 27,500 each for myself and ex


All sounds good and perhaps I should take the money and run....however I got divorced in 2015 (this buy to let property was one of the nails in the coffin in that relationship)
I have lost a tracker mortgage
I have no assest
27,500 is not much if I wanted to buy something else as I am still named on the mortgage of family home meaning I'm approaching lenders with debt already to my name (however this has never been in arrears and is well serviced - have to wait another 5 years before I'm free of this)

What I really want is to have a property with a 75% LTV ratio and to again be paying a 110,000 Tracker Mortgage with only 12 years remaining

Should I appeal?
(It's messy because my ex has no interest in appealing as she has already had her cake and blah blah blah)


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## moneymakeover (29 Apr 2017)

Never ceases to amaze how awful these banks behave

I agree you should be restored to having a property and a tracker

But will the appeals board support you?


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## nowhere123 (2 May 2017)

Harryseven,

Did the bank write off the outstanding 106k as part of the redress "compensation"?


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## Brendan Burgess (2 May 2017)

Harryseven said:


> Penalties and arrears amounted to 31,000



It makes no sense to add "penalties and arrears" together. 

What does "penalties" mean anyway? 

Sounds like you were overcharged €17k but were €31k in arrears. 

Therefore you did not lose the property because you were overcharged. You lost it because you could not/did not even meet the repayments which you would have been charged had you been on a tracker. 

Brendan


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## PFS7979 (2 May 2017)

Harryseven,

Regardless of some other opinions here, the overcharging was a significant factor. The investment did not stack up as it otherwise would have had u been on the correct interest rate. There were other factors at play in your private life contributing to ur situation. The Banks redress needs to reflect ur economic loss and at €50k you have a reasonable starting point but also grounds to appeal it in my opinion... (some others here seem to express their opinion as though it were a fact)

 I can tell you, our position is very similar in terms of selling price of house and shortfall. However, we managed the house sale on effective direction of the bank and paid net rent into loan right until we asked tenants to leave to facilitate sale... the arrears were much less than your arrears figure and we received c. 60% of the compensation payment you received...

We are obviously appealing our redress.. Good luck with ur appeal.


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## Harryseven (29 Jun 2017)

Hi All,
Thank you for the replies and opinions. Apologies for not responding sooner, however I have signed in here with an email address that I rarely check.

Just to update, I have sought legal advice and have been preliminary advised that I have a case with which to pursue the Bank.
Currently assembling information upon which the solicitor can base a concrete decision on whether or not to instigate legal action.

Has anyone gone down this route? Has it gone all the way to court?

Thanks again


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## Harryseven (19 Aug 2017)

nowhere123 said:


> Harryseven,
> 
> Did the bank write off the outstanding 106k as part of the redress "compensation"?



The funds from the sale offset the balance and the bank cleared the remaining balance.


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## Palerider (19 Aug 2017)

The Bank wrote off a portion so, how much was written off ?


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