Extortionate Change in Break Fee

Jimbodean said:

I never switched banks, my old mortgage was with KBC too. They said because I had previously signed a direct debit instruction when I first took out the original mortgage I didn't need to sign a new one. KBC decided the the monthly amounts based on the break fee and I was only told about it in the final response to my complaint. I had repayments taken out in Sep and Oct but each time I phoned KBC nobody could say what the direct debits were for.

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This doesn't make sense to me. You must have been given a loan document that stated how much your monthly repayments would be. Is that figure equal to what they have now taken out.

- You sold your house (mortgage 1 KBC)
- You bought a new house (mortgage 2 KBC)
- You paid back your mortgage 1 with KBC out of the money the purchasers paid you, was their equity or not? But there was a break fee of €17K
- You took out a new loan on the new house
- You have the mortgage documentation for this

Did your solicitor discuss with you how much you would need to pay KBC for Mortgage 1 at any stage?
When did KBC first mention the 17K break fee?
Who did you speak to in KBC when you asked them what the DD's were for. I presume this is a figure added to your Mortgage 2 amount. Something has to have happened in KBC for this to be organised. Did you find out this information.

It is entirely within the capability of KBC or any bank to waive the break fees.

You need to find the thread on break fees and figure out can it be that in 8 months a break fee goes from zero to 17K.

Bronte said:

Did your solicitor discuss with you how much you would need to pay KBC for Mortgage 1 at any stage?
When did KBC first mention the 17K break fee?
Who did you speak to in KBC when you asked them what the DD's were for. I presume this is a figure added to your Mortgage 2 amount. Something has to have happened in KBC for this to be organised. Did you find out this information.

It is entirely within the capability of KBC or any bank to waive the break fees.

You need to find the thread on break fees and figure out can it be that in 8 months a break fee goes from zero to 17K.

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-My solicitor asked me to find out how much I owed KBC so he could pay it off once we closed on the sale...verbally over the phone, KBC confirmed the amount outstanding which was in the region of €139,000 not including any break fee but I assumed this was still in or around the €0 mark.
-KBC first mentioned the 17k break fee a few days after we actually moved into our new house and after my solicitor had lodged the €139,000 into my old mortgage account...what we assumed paid paid off our mortgage.
-I spoke to two different guys from the customer service department when I noticed that KBC had set up a new DD from my account. Neither could tell me what it was for and although they both said they'd look into in and call me back, they never did.
- Eventually, the lady handling our complaint from the complaints dep told me what the new DD was for.
-The 17k is not part of my new mortgage, they just haven't closed my old mortgage account until the 17k is paid off. So I assume now I have two mortgages.