I cannot remember the person that gave me the loan. The bank manager was busy at the time and sent me on to another Aib bank. A friend of hers worked there. The fellow that is looking after the loan now only contacted me in Sep 2010
Didn't think they could do that, it has nothing to do with your mother. It sounds very unprofessional. Sounds like someone screwed up by giving you the initial loan and is panicking and maybe trying to hide it from their boss. I wonder was their a "rogue" loan approver firing out loans to blow up their commision. Now it's all gone wrong and they're desparetely trying to clear it up. I also find it strange that you received text messages from them. All my contacts with banks has always been mail, voice calls or voice messages - never a text. Is it always the same people in the bank you're dealing with?
I did my calculations last week on the mortgage repayments when the 30k would be paid off I could afford it, but then as I say the bank turned around and said that the monthly payments will not reduce so I am back in the same position I was in first day with the repayments.
My family and I have been banking with AIB for years surely you think they would act in our best interest.
They gave me a 100k mortgage on a site worth say 100k in the good years. Property collapsed site only worth 10k now. Bank has a problem.
They put me under pressure to bring in the money. The person in charge said he was under pressure form head office to get money in against the loan even though up until then I never missed a repayment.. Constant phone calls and text as to when the money was coming in. Then when the money came in I was put under pressure again to sign a new laon approval and this had to be done immediately again as he said he was under pressure again from head office. I signed this because I did not want any trouble from the bank. So now the the bank problems are less the 30k is in the bank. I was paying interest on it to keep it there. When I asked to put the 30k against the 100k they asked for deeds of my mothers land to secure the loan. If she had this would have been another bonus for the bank. Now and only for my solicitor contacting the bank the 30k is off the 100k. But my monthly payments are still unaffordable. The should have expalined to me first day that the monthly payments were set. I was put under so much pressure to sign every time and get money in. I just did it as I never thought the bank would try and screw me.
Yes they tricked me to put the 30k in a deposit account with no access to it and charge me 4.8% to borrow this 30k and give me 2% on depositSomething really doesn't add up about this whole situation. OP are you on a fixed interest rate at the moment? If so, the bank would have every right to insist on the same payment for the duration of that fixed rate contract. No not on a fixed rate, they just told me I was on a fixed monthly payment. I argued that I was on a variable but they said no the monthly payment was not changing.
If you're on the Standard Variable Rate, then that 30K should reduce the term length. If you want to decrease the payment to 70K over the same length of time, you would need to remortgage the new amount over the same term I think, which the bank is never going to do given the extremely low LTV. My solicitior phoned the bank and told them that the 30k must be put against the 100k. I don't know what pressure she put on them but it worked and now the 30k is being put against the 100k. I could be wrong, but I believe overpaying a mortgage, where allowed, will reduce the term rather than the payments. However, this means you pay the same principle monthly and should in theory reduce your interest payments unless you're on a fixed rate - in which case the bank has a contract to expect a fixed amount of interest for the duration of that contract
As for the 30K deposit being used as security, that's very odd, but it's probably the bank trying to make its balance sheet look healthier. 10K site on a 70K loan is LTV of 14%, while 10K site + 30K deposit is 40K security on a 100K loan giving an LTV of 40% which helps the banks balance sheet. It sounds like they tricked you into voluntary charge on your asset, the 30K.
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