MsWhitaker
Registered User
- Messages
- 2
70yr old widower, owns PPR outright - Value of home:200k+
Income: Old age pension, with additional deceased spouses pension €5k per annum.
Self-employed income sporadic.
Income history:Serious fall off in work since recession.
Wants to retire for health reasons. No overdraft – No Credit Cards
Term loan - monthly repayments €250 approx. till 2019
Investment property 1
Lender:Ulster Bank - Amount outstanding:approx. €25k (ends in 2020) – no arrears.
Value of home:160k. Monthly repayment - €700, rent received €700
Investment property 2
Lender:KBC - Amount outstanding: €210k
(original mortgage 2008-2012 - €200k 5 year interest only)
Current value of property:170k approx
In 2013 at end of term the bank was fully engaged with and SFS’s submitted as to financial circumstances and inability to repay the original 200k. Renegotiated with bank for 6 & 12-month extensions and in Sept 2014 bank deemed the mortgage in question was unsustainable and they were going to pursue voluntary sale or surrender.
Wife was ill at this time (passed away 2015) and so there was a “moratorium” on the account for 24 months, back dated to June of 2014 (signed Nov/Dec 2014) reducing the repayments from €895 to €700 in consideration of the circumstances and ability to pay.
During this a subsequent LOV sent out by the bank of its own volition, reduced repayments to just under €500 (presumed due to consideration of wifes terminal health situation, which bank were aware of). This was signed but a subsequent LOV revised payments increased to €900! This was disputed (due to inability to pay) and a formal complaint lodged and repayments were agreed to be continued at €700 per month (tenant at that stage was paying €650 p/m). Have been dealing since with the executor relations. Small life insurance policy only covered funeral expenses.
New SFS lodged in Nov 16 requesting a 12m extension to this arrangement. Early Dec bank again deemed mortgage unsustainable but paperwork never materialised, although in contact with bank. Mid Jan, received email to say the bank had reconsidered and would give a 3 month extension! Next day documentation to say that the mortgage was unsustainable!! A phone call to our contact in the bank said to disregard the letter for the time being?? Appealed the 3m extension (on advice from FLAC in respect of all paperwork received) looking for an extended period of 5yrs - (as ideally the market will have risen enough by that stage to clear the negative equity).
Last week the bank agreed to 5yr extension. The first LOV arrived with the 5yr term indicating repayments nearly €4k! Contacted the bank - who will issue a “comfort letter” stating no liability for these repayments, as the fault lies within their internal systems... but it must be signed and returned to the bank so they can reissue another LOV with the agreed repayments of €1000 p/m as the current tenant (Nov 2016) is paying rent of €1000.
Bank will not entertain interest rate negotiation! All agreed repayments with bank up to date although the 10k overrun is from capitalised “arrears” from renegotiating periods and bank delays on documentation.
Interest rate: 5.15% - APR 8.43% - on a Flexi Reslet Annuity mortgage
Question: why such a difference in interest and APR, as the difference on the the banks website for new customers is less than one percentage point (perhaps this will change with new LOV??, but why cant they issue this in advance?)
(Due to previous complaint?) every letter ends with the right to contact Financial Ombudsman? Any advice on this situation is welcomed. Many thanks
Income: Old age pension, with additional deceased spouses pension €5k per annum.
Self-employed income sporadic.
Income history:Serious fall off in work since recession.
Wants to retire for health reasons. No overdraft – No Credit Cards
Term loan - monthly repayments €250 approx. till 2019
Investment property 1
Lender:Ulster Bank - Amount outstanding:approx. €25k (ends in 2020) – no arrears.
Value of home:160k. Monthly repayment - €700, rent received €700
Investment property 2
Lender:KBC - Amount outstanding: €210k
(original mortgage 2008-2012 - €200k 5 year interest only)
Current value of property:170k approx
In 2013 at end of term the bank was fully engaged with and SFS’s submitted as to financial circumstances and inability to repay the original 200k. Renegotiated with bank for 6 & 12-month extensions and in Sept 2014 bank deemed the mortgage in question was unsustainable and they were going to pursue voluntary sale or surrender.
Wife was ill at this time (passed away 2015) and so there was a “moratorium” on the account for 24 months, back dated to June of 2014 (signed Nov/Dec 2014) reducing the repayments from €895 to €700 in consideration of the circumstances and ability to pay.
During this a subsequent LOV sent out by the bank of its own volition, reduced repayments to just under €500 (presumed due to consideration of wifes terminal health situation, which bank were aware of). This was signed but a subsequent LOV revised payments increased to €900! This was disputed (due to inability to pay) and a formal complaint lodged and repayments were agreed to be continued at €700 per month (tenant at that stage was paying €650 p/m). Have been dealing since with the executor relations. Small life insurance policy only covered funeral expenses.
New SFS lodged in Nov 16 requesting a 12m extension to this arrangement. Early Dec bank again deemed mortgage unsustainable but paperwork never materialised, although in contact with bank. Mid Jan, received email to say the bank had reconsidered and would give a 3 month extension! Next day documentation to say that the mortgage was unsustainable!! A phone call to our contact in the bank said to disregard the letter for the time being?? Appealed the 3m extension (on advice from FLAC in respect of all paperwork received) looking for an extended period of 5yrs - (as ideally the market will have risen enough by that stage to clear the negative equity).
Last week the bank agreed to 5yr extension. The first LOV arrived with the 5yr term indicating repayments nearly €4k! Contacted the bank - who will issue a “comfort letter” stating no liability for these repayments, as the fault lies within their internal systems... but it must be signed and returned to the bank so they can reissue another LOV with the agreed repayments of €1000 p/m as the current tenant (Nov 2016) is paying rent of €1000.
Bank will not entertain interest rate negotiation! All agreed repayments with bank up to date although the 10k overrun is from capitalised “arrears” from renegotiating periods and bank delays on documentation.
Interest rate: 5.15% - APR 8.43% - on a Flexi Reslet Annuity mortgage
Question: why such a difference in interest and APR, as the difference on the the banks website for new customers is less than one percentage point (perhaps this will change with new LOV??, but why cant they issue this in advance?)
(Due to previous complaint?) every letter ends with the right to contact Financial Ombudsman? Any advice on this situation is welcomed. Many thanks
