Anybody got an NIB Variable Rate Home Loan? - Beware of so-called "default" rates..

H

Hot_snot

Guest
Hey,

I have a Variable Rate Home Loan (VRHL) from NIB. This loan was a 2-yr fixed loan that reverts to the (or NIB's) standard rate at the end of the fixed period. The fixed period ended a while back and I was placed onto the variable rate of a whopping 5.9%. The repayment was a good bit higher than I had been paying (cripplingly high!), but I knew the rate had to be be reduced soon thereafter.

When I realised last week that the repayment still hadn't been reduced, I got straight on the phone to NIB. They told me the rate had dropped but the "default was to keep the higher payment unless otherwise specified by the customer". How could I have specified this if I had never been made aware of it???. So I told them to put me on the correct rate and refund any overpayment that had been made.

{Coincidentally, if my "default" was to pay the lower rate, how long do you think it would take them to inform me!!!!?}

I received a letter today informing me of my new rate (a mediocre 4.15%) and the repayment to be paid from now on.. They have not, however, backdated the rate change. So, to my question:

Does anybody know when NIB changed their VRHL rate from 5.9% to 4.15%???

Thanks,
Kashstrapd
 
Re: Anybody got an NIB Variable Rate Home Loan? - Beware of so-called "default" rates

This post should be forwarded to anyone who feels that they do not need to use an independent advisor when dealing with the banks.

This is another appalling example of how lenders "suck" people in with very attractive "new business" rates & then strangle them with inflated "existing business rate scale" when they have you in their claws.

Have you asked NIB or checked what variable rate they currently offer new loans? Is this rate any better than your 4.15% & if so why?
 
Re: Anybody got an NIB Variable Rate Home Loan? - Beware of so-called "default" rates

That is disgraceful behaviour by NIB.
 
Re: Anybody got an NIB Variable Rate Home Loan? - Beware of so-called "default" rates


what you will probably find is that you were always on the reduced rate when it came into existance, its just your repayment was not reduced.
so you were paying less interest than before, but this means you were paying more off the capital balance.

so they dont need to backdate it as it was probably applied anyway.
the only option available to you will be
that you can have the overpayments refunded to you, but
if you take this refund your mortgage balance will increase by the amount of the refund.

so you need to get on to the bank and aske them when the reduced rates were applied to your mortgage account.
id ask for it in writing so its fact.
 
Re: Anybody got an NIB Variable Rate Home Loan? - Beware of so-called "default" rates

Relax, when it comes to money if you don't stay on top of it yourself you always pay more than you expect. Not defending the bank , but you would have been aware that the fixed rate expired and you are on the "Standard" variable rate. If you were on an ECB Tracker rate then you're owed back the difference, but a standard variable rate is there and it applies to people like you who let there fixed terms expire without sitting down and having a look at your finances and options on a regular basis. I'm in a fixed rate at the moment and I know that it reverts to the banks standard rate when its up next year, because when I signed the mortgage agreement , it explicitly stated that would be the case. Also that is one of the basics of business management, if your customers are prepared to pay more then let them, it happens with phone packages, broadband , insurance , its everywhere. You just mightn't be a savvy consumer. So by all means highlight the issue but don't absolve yourself from some responsibility as a consumer to keep on top of yor game.
 
Re: Anybody got an NIB Variable Rate Home Loan? - Beware of so-called "default" rates

Hot_snot said:
Hey,



Does anybody know when NIB changed their VRHL rate from 5.9% to 4.15%???

Thanks,
Kashstrapd
Click to expand...

On 27/10/08 rate dropped from 5.9% to 5.4%

01/12/08 rate dropped from 5.4% to 4.9%

12/01/09 rate dropped from 4.9% to 4.15%

23/02/09 rate dropped from 4.15% to 3.65%

My repayments have always been adjusted after rate changes, I don’t recall ever specifying this, it just happened. I have the letters for the first three of the above reductions with my new rate and repayment.
 
Re: Anybody got an NIB Variable Rate Home Loan? - Beware of so-called "default" rates

switch to Halifax and avail of great rates 3.15% and they'll pay your legal and valuation fees. NiB are the the most competitive anymore
 
Re: Anybody got an NIB Variable Rate Home Loan? - Beware of so-called "default" rates

Thanks all for your comments. Especially to twofor1, you probably had to root out your NIB docs, but I really appreciate it. I just needed to find out when other NIB customers had their rates reduced so that NIB cannot attempt to pull the wool over my eyes any further when I get back to them about my refund.


"what you will probably find is that you were always on the reduced rate when it came into existance, its just your repayment was not reduced.
so you were paying less interest than before, but this means you were paying more off the capital balance"

That's all fine and good when one has some spare cash lying around the place.. The thing is, at present, I don't, and the extra cash is worth more to me now (while I'm still building a career, etc.) then it will at the end of the life of the mortgage. Furthermore, 1000euro today is worth a lot more than 1000euro will be worth in 20years time.


In order for me to avoid the risk of breaking the rules outlined in the , I will not be replying to roro123, namely:
19. Please stay on topic
16. If you are not a Frequent Poster, please do not Let Off Steam
10. Please be civil - avoid causing offence

Cheers!
 
Re: Anybody got an NIB Variable Rate Home Loan? - Beware of so-called "default" rates

Between this thread and the other recent thread (where home loans are being converted to 'investor loans), really looks like NIB must be under pressure. All that selling they did on very keenly priced trackers (of which I am thankful I switched to )they did must be hurting them??
 
Re: Anybody got an NIB Variable Rate Home Loan? - Beware of so-called "default" rates

This is confusing me, you reverted from the fixed to a variable rate but you did not get a 'standard' variable rate (ie the low normal one) but instead got a 'default' higher than normal variable rate. I've never heard of this. When you signed for the fixed did it specify that you would at the end of the term revert to the variable rate or revert to a default variable as versus a standard variable? I thought that when one was on a variable rate that with each drop one was automatically sent a letter outlining that the rate had dropped and repayments likewise and ditto for rate rises with increased repayments? As outlined by twofor1.
 
Re: Anybody got an NIB Variable Rate Home Loan? - Beware of so-called "default" rates

Hot_snot said:
I received a letter today informing me of my new rate (a mediocre 4.15%) and the repayment to be paid from now on..
Click to expand...

Based on twofor1's rates you should now be offered the 3.65% rate with a letter soon.
 
Re: Anybody got an NIB Variable Rate Home Loan? - Beware of so-called "default" rates

found the answer
 
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