Bank want to review restructured mortage

A

Averagejoe

Registered User
Messages
3
After 4 years negotiations with the bank, they finally gave me an extension of 3 years on my tracker home loan in April 2015. The new contract was signed by both parties and runs to 2025. I have paid the monthly payments (in fact it was being paid for some time beforehand) and no delays, arrears etc., the new contract stated that there was no requirement for any further review of the arrangements unless I failed to make the agreed payments.

I have now received a notification from the bank (less than 6 months later) to say that they want to review the mortgage facility. I don't understand what or why - particularly given the time it took to agree the arrangement. I was hoping that the stress associated with this situation would be removed by a new arrangement -but it seems now.

Is there any value in asking why or what their intention might be? Anyone else been through this process.
 
Past consideration is no consideration, the new contract you have signed stands, unless both parties wish to change same. If, as you say, there is no contractual obligation to review the new loan facility unless you fail to make the agreed payments, then there is nothing the bank can do so long as you keep your end of the bargain. What bank are you with ?
 
Poor housekeeping I'd say, they clearly just still have you on the list for regular reviews, would imagine it's just an error.
 
AIB....to be honest they have been a nightmare. I am terrified that this is a way to review the tracker. I know that there is something in the Central Bank guideline that requires the banks to keep things under review - but 6 months later seems odd.
 
1) It's extremely unlikely that they are trying to remove your tracker. Lenders have not availed of the very limited rights given in the revised CCMA to offer solutions involving the loss of trackers.
2) I would expect that it is probably an error on their part. So write to them enclosing a copy of the revised agreement and ask them to confirm by return that their letter was an error.
3) Is it possible that they have discovered that you misled them when negotiating the restructure? If so, I presume that they would have a right to review it.
4) Is it possible that the revised contract allows for more regular reviews that you suggest?
 
Thanks for that. I definitely didn't mislead them. I did 3 separate SOA processes trying to convince them to give some support to extending the mortgage period - they were required due to the time lapse from the first version and the time it took for the bank to respond. My understanding was that once they had agreed revised terms that these remain in place unless of course I breach them, which is fully understandable.
The revised contract makes no comment in relation to regular reviews, the only comment is on the second page of the contract where it states clearly that there is no requirement for further review once I continue to make the payments.
Thanks for the suggestions. I will do as you suggest and see what happens. Can I ask a question? When you have reached a formal long term arrangement with the banks, does that take out of MARP or do you remain within the process until the mortgage is finally paid off.
 
You must log in or register to reply here.
Back
Top