KPMG: Doubt over PTSBs ability to continue as a going concern

From Simon Carswll's piece in today's IT:

"Irish Life and Permanent, the biggest mortgage lender during the boom, will be broken up, and its profitable pensions and investments business Irish Life sold to help cover the cost of its bank, Permanent TSB.
The bank may still be merged into Bank of Ireland but Irish Life must first be sold."
 
penalised for moratorium

Hi everyone,

I'm new to the site but have been visiting for quiet some time now and have found you all quiet helpful.

Can anyone tell me if this sounds right? My mortgage (capital) was 382k before i asked for a three month payment freeze. Now the payments are due and my capital has gone upto 388k?? The lady told me that this was the interest adding up but i thought that it all froze. They penalised me by increasing my mortgage capital by 6k in just three months?? How is this helping customers. Of course it is ptsb, the most unhelpful and money grabbing bank in the country.
 
DTJAE said:
The lady told me that this was the interest adding up but i thought that it all froze. They penalised me by increasing my mortgage capital by 6k in just three months??
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DTJAE the interest is still charged when you take a payment holiday. This amount is added to the capital outstanding on your mortgage and spread over the remaining life of the mortgage.

Do you know what rate of interest are you paying on the loan?

I think the PTSB Variable Rate is in excess of 5.44% (or it was back in April) in which case then three months interest on a mortgage of €382,000 would be in the region of €5,200.
 


Thanks for that Panacea. It is unfortunate that nobody told me this because had i known i would never have taken the break. Would you know if i had scope for taking the bank on for reckless lending? Partner remortgaged our principal residence in 2009. He was self employed but his company was 60k overdrawn he personally guarnteed. His company was fully reliant on the construction industry for survival but all the bank looked for was 2yrs accounts from sept06-aug07 & sept07-aug08 just as the industry was dying. His income in this period would have been enough to do so. but 5months prior to application he didn't pay himself a wage because he couldn't afford to and his biggest client went into receivership. but even with the outstanding balances owed he would not have cleard the 60k. They didn't look for any company bank statements. We also had two other mortgages with another llender on interest only repayments and the ptsb would have been acutely aware of impending intersest hikes leaving it less likely to repay these mortgages, also the rental income had declined several months prior to application. The only positive part of the applciation was our home was at a 45%ltv. they didn't look at CURRENT capacity to repay. the reason we gave for needing the mortgage was to build a house on the site (one of the mortgages) when property prices were plumeting. We are not looking to get away with paying our mortgage as we take full responsibilty for taking the money but they should never have offered it at the time given our then financial situation.
 


Thanks for that Panacea. It is unfortunate that nobody told me this because had i known i would never have taken the break.
 
This sounds a little like reckless borrowing... Was the home loan really to dig the business out of trouble ?
 
There must be something in whatever paperwork you signed for the break regarding the interest accumulating?
 
No, they posted me a form and i signed it and sent it back. No one informed me my capital would increase by doing this.
 
millieforbes, what would the point be in digging the buisness out? that is why the overdraft was increased and look what good that did! The construction industry was on its knees and there was no work out there. the money waas to build the house on the site. I have not doubt that the banking sector will continue to get away with ruinning peoples lives with their reckless lending and bad banking practices, leaving the tax payer to pick up the bill while they walk around scott free regardless of their obvious inability to run a bank and make proper and good decisions as to wether or not an applicant is suitable for a loan required. Do you think a doctor would get away with removing a healthy organ because they didn't do their homework. There not giving out mortgages now because they fear inability to repay so what is the differnce between then and now.......to little to late but they should be held accountable.
 
Ok, I was confused by your comment "the reason we gave for needing a mortgage was building a house". Given your previous statements about how the business was struggling and there was no way it could repay the overdraft and that you seem fully aware of your poor financial prospects I though you were distinguishing between the reason you gave the bank and the real reason.

I appreciate that the bank don't seem to have done their checks, but can you honestly say you accurately presented your financial position to them? Given that your partner had taken no wage for 5 months, how were you intending to pay a mortgage?

I find your logic a little confusing, but that may be because hindsight is confusing things
 
We did it through a broker and have everything bit of info d bank ask for. We didn't hide anything, they didn't require any further info. Every other bank turned us down just because of the reliance of the construction industry for an income. People do stupid thing when desperat, are the banks not supposed to confirm suitability of an applicant before proceeding (due care). The're doing it now so what's the differance between then and now?
 
DTJAE said:
Every other bank turned us down just because of the reliance of the construction industry for an income. People do stupid thing when desperat,
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It sounds like you had a pretty good indication from the other banks that this project wasn't a good idea, but you went ahead anyway. And now you expect the bank to bail you out?

DTJAE said:
what's the differance between then and now?
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About €80 billion of taxpayers money that has gone into keeping them afloat.
 
DTJAE said:
People do stupid thing(s) when desperat(e),
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Precisely, I heard a woman last year on the radio who had run up financial problems and opined, 'sure, we didn't think beyond the end of our noses' or words to that effect..

Hey, it's a 'free' world - do stupid things, don't think beyond the end of your nose .... but do expect to live by the consequences.
 
EsterCaloPoE said:
I have all my savings in PTSB as I thought that they were the safest Irish Bank ??? Are KPMG correct? Could Permo shut down? I am taking my money out of Permo on Monday and moving it to KBC.
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You need to diversify, diversification is the key nowadays. You shouldn't be loyal to any bank... Expecially banks...
 
Complainer,
I don't expect to be bailed out, i take full responsibiltiy for taking the money but the fact remains that the bank should never have given us the money in the first place ie they did not do their jobs and now we are left with the consequences of that. How can you type words that sound like you agree with the bankers or irelands banks, are you a banker??? All i want is for the bank to take responsibility for not doing the job they are paid very well to do. Many people are refused for loan applications by other institutions and one or two will offer the money. We were not aware all other institutions refused until after we were told about ptsb approval as the broker did not contact us every time he got a refusal letter. Please, have you every applied for a loan or been pushed into a corner?? obviously not!
 

Never thought I would see someone ask Complainer that!
 
DTJAE said:
All i want is for the bank to take responsibility for not doing the job they are paid very well to do.
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How should they take responsibility and what difference will it make to your situation exactly?
 
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