Discussion: Should customers be let out of fixed rate mortgages?

[callybags]

PLEASE SIGN PETITION www.actiononfixedmortgages.com. AIM is to get the government to take notice and do something about charges of getting out of a fixed mortgage.

This must be the most ridiculous post I have seen to date.

Can the government get on to BoyleSports because they are giving far too short odds on Barcelona winning the Champions League?. it's just not acceptable.

Also, I've just realised that where I bought my house is not close enough to where I work. Could the government intervene to sort out this problem?

What happened to individuals taking responsibility for their own actions?

 

[Bronte]

Despite much searching I cannot find the thread I want, it was one where I ranted a lot about banks/builders developers etc.

Well today I'm incensed that a bank has loaned money to it's own staff for property purchases/investments/speculation but they, the staff, are getting the kid glove treatment. Have I got the story correct, the staff's loans are being written off as bad debt but we the public who are paying for the bad loans (NAMA) are being told nothing. Also the staff still have their jobs but they don't have to pay back the bad debt nor do they have their homes/assets seized. They will not be brought to court, much less prison, what type of a system is this. Are the rest of you not just burning with fury at this?

 

[TheBigD]

<delete>

 

[DerKaiser]

Despite much searching I cannot find the thread I want, it was one where I ranted a lot about banks/builders developers etc.

Well today I'm incensed that a bank has loaned money to it's own staff for property purchases/investments/speculation but they, the staff, are getting the kid glove treatment. Have I got the story correct, the staff's loans are being written off as bad debt but we the public who are paying for the bad loans (NAMA) are being told nothing. Also the staff still have their jobs but they don't have to pay back the bad debt nor do they have their homes/assets seized. They will not be brought to court, much less prison, what type of a system is this. Are the rest of you not just burning with fury at this?

Take a deep breath.

Anyone with a written down loan has to continue to make payments. The process of writing it down simply means that the bank is being realistic about it's chances of being repaid in line with prudent accounting practices.

This thing is a non-story compared to the loans for shares, hidden directors loans and dodgy deposits from other institutions. Most likely staff got preferential loan terms (most companies do this) and have now had their pay cut or are unlikely to ever get a bonus again so their ability to repay is seen as less likely

 

[so-crates]

of course, customers should be allowed to come out of fixed rate depending on their current circumstance, if they're still earning as much as they were when they took the fixed rate, then it's fine, but if not, is it better for banks to reposses customer's homes and then still lose or allow them come out of fixed rate if repayment is too high for them to keep? if the government bailed out the banks from their debts then they should bail out customers from fixed rate.

we all have our right to different opinion, and guess wat u dont av to agree with mine. it's a free world

if the banks can make mistakes and went into debts, show me one man who is perfect and i'll rest my case

hmm - somehow there is something terribly appropriate about the moniker you have given yourself... If you want a contract whereby you can break out of a fixed rate when your circumstances change you should negotiate such a contract before signing it. You can't simply throw your toys out of the pram and demand attention babybisi.

PLEASE SIGN PETITION www.actiononfixedmortgages.com. AIM is to get the government to take notice and do something about charges of getting out of a fixed mortgage.

Good grief! No, I wouldn't sign up to anything so ludicrous.

Despite much searching I cannot find the thread I want, it was one where I ranted a lot about banks/builders developers etc.

Well today I'm incensed that a bank has loaned money to it's own staff for property purchases/investments/speculation but they, the staff, are getting the kid glove treatment. Have I got the story correct, the staff's loans are being written off as bad debt but we the public who are paying for the bad loans (NAMA) are being told nothing. Also the staff still have their jobs but they don't have to pay back the bad debt nor do they have their homes/assets seized. They will not be brought to court, much less prison, what type of a system is this. Are the rest of you not just burning with fury at this?

It's not exactly unusual that banks loan to their staff preferentially. The problem isn't really that the staff have been loaned to it is the policies that Anglo engaged in wholesale. Like Der Kaiser says, the loans haven't suddenly disappeared, these self-same staff are still obliged to repay them. I suppose in a twisted sense it gives them a double incentive to ensure that the bank succeeds in getting repayments for all outstanding loans...

 

[shirley_d]

Getting a mortgage is one of the largest decisions of a life time, you need to understand what your doing. I do not have one yet because of the following considerations.


Is the house worth the price?
-I do not like over paying for anything, this was no exception.

Just because they will give me this load can I really repay it?
- If I go for a 35 year mortgage and my circumstances change I have no room for negotiations, How much will they lend me at a 25year and can I buy what I want for that.
- should I factor interest rate relief into my calculation?, no because things like that are subject to change I'll not factor it and see if I can afford if rates go up by 3%
- How much of our income am I really willing to pay, I could loose my job, have an ill child or relative that needs permanent care.. generally the unknown.


Granted I did a lot of reading and was fairly sure things couldn't go on forever. So I decided not to buy, but I'm doing the second phase of research now by reading threads like this one as I'll look for a mortgage in Jan.

When you decide what you can afford you look at the mortgages themselves.

What are the types what are the risks and what are the rates?
Then you think of things like, if its fixed what happens when it ends?
If I come into a lump sum from a relative, does my mortgage provider allow me to may the money of the principle with out penalty can I build that into my mortgage contract?

Insurance what does it cover? Illness, unemployment?

End result, I'll get a 25year mortgage perhaps with not the lowest rate if some of the term are more important. And I have room to move if something goes wrong.


What I'm highlighting here is that we all have free choice, and you should do your homework before you sign a contract. If you find your self with little choice perhaps its a sign you are overstretching yourself. If you are getting a load you can very easily afford my guess is the banks will be easier to deal with.


A contract is a contract, the banks know what they are doing we should too. And then live with the choice

 

[Bronte]

Take a deep breath.

Anyone with a written down loan has to continue to make payments. The process of writing it down simply means that the bank is being realistic about it's chances of being repaid in line with prudent accounting practices.

This thing is a non-story compared to the loans for shares, hidden directors loans and dodgy deposits from other institutions. Most likely staff got preferential loan terms (most companies do this) and have now had their pay cut or are unlikely to ever get a bonus again so their ability to repay is seen as less likely

Deep breath is not doing it for me. I like to know the truth and I guess I'll have to wait about 10 years or so for that.

I'm not annoyed that staff got preferential treatment in their loan rates. I'm annoyed they don't have to repay the debt and can continue in their good jobs. Ordinary people are not getting their loans written off if they have difficulty repaying them. I understood, but I'm open to correction, that the staff in fact do not have to make repayments 'if they cannot afford to'. Meanwhile banks are increasing their charges, cancelling overdrafts, hiking up the rates on investment mortgages and telling all and sundry they are open for business.

 

[shirley_d]

As has been already stated they have not had the loans written off, for all you know they have classified them as a risk because they are planning to make them redundant (being cheeky here) or perhaps there partners were made redundant.

If you are a a risk and are having difficulty they may have classified your loan in this way too, doesn't mean they don't want what they can get. And you wouldn't necessarily know about it.

 

[Dazzles]

Hello.....I know this has all being discussed before but I am hoping that someone could offer a bit of advice.

Myself and my husband were forced to put our newly built home on the market due to a drastic change in circumstances. My husband has now being out of work for three months and has only now being called for an assessment with regard to getting JSA. To cut a long story short we are in a terrible mess finacially. So luckily we got a buyer for the house, we are losing money but have no other choice but to get out. So all was going well - buyer very happy and all until the solicitor called us in Friday to tell us that our bank KBC were looking for E10,000 for us to break out of the mortgage. This means that we are going to have to actually borrow this money to pay KBC. I have researched this and understand that a lot of people are in the same situation. Personally I think its horrible and very unfair of the banks - we are not making money on this sale but a loss and we now have to borrow money in order to sell our home - but who cares what I think!

So my query.....is there any chance that we could do something about this? Or that the Financial Regulator will be addressing this issue anytime in the near future (we are trying to close the sale in a week or two!!!!! No pressure!). Or should we just go with what we are being offered and be thankful of getting out? I am desperate!

Also....if I post up details of our mortgage would anyone be able to do the calculations (just to be sure they are correct) as I can't figure out where they are coming up with the amount.

Any advice really, really appreciated. I feel like I am cracking up!

 

[so-crates]

Um - Dazzles - it may be best to start a new thread. You are looking for specific advice in a general discussion so your post may not get the attention it deserves.

I can't see IFSRA "addressing the issue" to your satisfaction in order to help you with those deadlines. Hard and all as it is, I think you are going to have to deal with the problem as it stands.

I know you are losing money on this. I am guessing though you have a fixed rate mortgage? From the banks perspective it is losing money by letting you pay off the mortgage in full at this time hence the requirement to pay a breakout fee. As another poster has pointed out, the current low interest rates mean that breakout fees are currently very high.

Have you spoken to KBC and explained your situation in full? Have you queried them as to how they have arrived at a figure of €10k? Will you be able to sort out the additional €10k in the next two weeks? Are you already borrowing to cover the negative equity?