Bank closed my mortgage account with no communication with me

I can't help with your original question I'm afraid but, out of interest, would the cost of mortgage protection premiums not negate the benefits of deed storage/current account fees?
 
Concrete said:
I can't help with your original question I'm afraid but, out of interest, would the cost of mortgage protection premiums not negate the benefits of deed storage/current account fees?
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When I reduced my mortgage by making lump sum payments, I re-negotiated my mortgage protection policy by taking out a new policy and substituting the new one as security.
 
Pineapple, yes certainly I'll post if there are any updates. Everything was processed and then a week later that credit was applied to the account to close it so it was definite intervention by the bank - maybe the system is programmed to do it if a balance drops to a certain level. I even allowed for Q2 interest in my calculations which is/was due on 16th June so I'm positive I had figures correct.

Concrete, yes you're right, substantial difference but I had planned to keep the policy anyway as "normal" life assurance. It runs much longer than the mortgage as it was a policy taken out for a long long Celtic tiger mortgage that I kept when I sold that property. Another error of judgement with the purchase of that one!
 
SlugBreath said:
Borrowing against the property to fund a holiday home abroad or similar.
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Are any of the banks even allowing this at the moment? Aren't they insisting on mortgages tied to the actual property at buy-to-let rates?
 
Leo said:
Are any of the banks even allowing this at the moment? Aren't they insisting on mortgages tied to the actual property at buy-to-let rates?
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I am not sure. I would like to keep my mortgage open in case things change. I suppose it could depend on the equity that you have in your home and the amount of the borrowing.
 
SlugBreath said:
I am not sure. I would like to keep my mortgage open in case things change. I suppose it could depend on the equity that you have in your home and the amount of the borrowing.
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From posts on here over the last few years, top-ups are tougher to get, even those for refurbishment work require proof of the work you are carrying out. Topping up a residential mortgage to buy a holiday home is unlikely, it'll require a new mortgage application.
 
I think the problem was letting the balance drop so low, there is probably something to alert them to very small balances and to clear they just debit a nominal account rather than having them sit on the system doing nothing for years which could happen. I have done similar in that I could clear my mortgage but would rather not have the hassle of minding the deeds until I have to so I have reduced the balance substantially but it's still around 5k and has 7 yrs I think left to run. I pay no interest at all though so doesn't cost me anything to do this as it's an offset mortgage.

In fairness it's not something the bank would be inclined to think a customer would have a problem with seeing as the main goal for most people is clear mortgage!
 
They may have made a miscalculation earlier when changing the interest and capital so often which resulted in them owing you a refund. They then just paid this directly into your mortgage account which it cleared it. Whether it was deliberate or not is something we will never know.
 
Just a quick update - the transaction was reversed (at my request last week) this morning resulting in the small balance returning to the account. Still have had no communication from the bank though other than an automated acknowledgement when I emailed them last week to ask. I'll update again when the next quarterly fee is due to see if they refund.
 
Success, that's brilliant.
 
Im far-away from clearing my mortgage but personally, id prefer when it gets low to just get it finished and get deeds returned to me, and keep them in a safe.

What kid of fees are people paying that is worthwhile extending out the mortgage?

I have revolut + credit union and also have a credit card.
I pay 2.99 or something per month as ive 2 revolut junior accounts set up from mine, and that fee will.go away in few months.

Would this not be a suitable setup and avoid fees from banks such as AIB etc? Also mortgage protection wouldnt be a concern
 
I'm not an AIB customer but if fees are €18 a Year (€4.50 a quarter) and a variable rate mortgage is 3.75% then a mortgage balance of less than €480 would seem to pay for itself. I'm sure AIB would know this too.
 
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skrooge said:
I'm not an AIB customer but if fees as €18. Year (€4.50 a quarter} and a variable rate mortgage is 3.75% then a mortgage balance of less than €480 would seem to pay for itself. I'm sure AIB would know this too.
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AIB charge a lot more than €18 a year for their current account
 
McGaggs said:
AIB charge a lot more than €18 a year for their current account
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€4.50 a quarter according to this. Admittedly before you actually use it for anything. I got disheartened reading all the various charges. It's like the worst bits of Ryanair and without a destination.


If you actually depend on AIB for a banking service then obviously the breakeven mortgage balance will be higher than €480.
 

I see it differently from various aspects:
  1. Free deed storage
  2. Keeping loan principal to a low value like 100-200 euros and spreading that repayment over 15-20 years does nothing to hurt you even if interest rate increase. The trade off is, It is more or less free fees practically until when you retire (Assuming most people's mortgage is to finish near retirement age). You can say it is paying for itself. That is a tradeoff I can live with.
  3. It gives alternative option as back up banking (although I have to say AIB has been my main back since I was in secondary school, where as Revolut is my back up).
  4. Mortgage protection side depends on what cover you took out. It probably is not worth it is you took out "Reducing term cover" (i.e. same premium but reducing payout based on the loan balance). For my own example, I took out "level term dual life cover" mortgage protection. The premium is a little bit more expensive (though not too much) but the payout in the event of first death will be the full initial mortgage loan amount. It will also pay out on second death (provided still within the lifetime of the loan term) as long as the premium payment continues after first death occur. So even if I pay off the mortgage in full tomorrow and I keep paying the premium, I can treat the mortgage protection cover like a life insurance until the end of the loan term. I'm certainly not giving that up. Approximately 10.5K worth of premium payment over 28 years for potentially dual payout of 205K is well worth it in my book.
  5. Majority of people will likely get one shot at getting a mortgage in their lifetime. This sort of opportunity to get a leg up on the banks may not come around as easily again.

Anyway I have digressed, it might not work for some people but I cannot see any downside to this for my scenario when my day comes.

Also does it really hurt to have alternative banking option? Like the BoI ATM glitch issue and some recent one I read about PTSB system went down when the user was abroad. I wouldn't like Revolut to go down and I'm stuck with no alternative. At the end of the day I see value in having different options and if it is practically free with not much effort, I'd take it.
 
Great thank you for your insight on this!
 
Sorry folks have been quiet due to some health issues. Everything proceeding as normal. Monthly mortgage payment comes out each month and balance now reduced to below €80. They haven't charged any interest on the account since I got the balance down - even if they add it all on at the end it wont' be much - I haven't bothered querying it with them. Interest rate has gone up from 2.75% to 3.75% in the last year which moved the monthly repayment from 86c to 87c. In relation to the fees they can range from €12-€18 per quarter depending on usage but Revolut has helped reduce them. Hope this is of some assistance.
 
Hope you get better and thanks a lot for the update!
 
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