Mars Capital not offering a fixed rate?

Annabelle

Annabelle

New Member
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8
I had an EBS mortgage, It is about 16 years old. It was taken over last year as it was classed as a non performing loan, by a company who are not a bank.
I have no idea why it was categorised as non performing as house is in equity and no reason to be a risk as both parties are and were in long term careers.

My question is, as the company are not a bank, they cannot offer anything other than a variable rate, is this legal?
We had no say in our load being transferred to this company it was transferred without anything being signed etc which I assume is the norm.

I havent heard anything anywhere about loans similar to mine where this has happened so I can only assume there are only a few. My account was one that was taken off a tracker years ago and we were compensated, I have a feeling that is linked to the reason we were considered "non-performing"

My first post on here helpful advice would be appreciated

Edited to add the fund that own my mortgage is Mars Capital
 
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Hi Annabelle

The lender is not obliged to offer you fixed rates.

Did you get your tracker back? If you did, what is the tracker margin?

Brendan
 
Annabelle said:
I have no idea why it was categorised as non performing as house is in equity and no reason to be a risk as both parties are and were in long term careers.
Click to expand...

EBS did not randomly sell off performing loans.

Were you in arrears?
Had the loan been restructured?
Did you have a separate loan on an investment property which was in arrears or restructured?

Brendan
 
Brendan Burgess said:
EBS did not randomly sell off performing loans.

Were you in arrears?
Had the loan been restructured?
Did you have a separate loan on an investment property which was in arrears or restructured?

Brendan
Click to expand...
Nope not in arrears, load had been restructured a long time ago, close to ten years, and no other loan.
 
Brendan Burgess said:
Hi Annabelle

The lender is not obliged to offer you fixed rates.

Did you get your tracker back? If you did, what is the tracker margin?

Brendan
Click to expand...
Nope didn't get it back
Brendan Burgess said:
EBS did not randomly sell off performing loans.

Were you in arrears?
Had the loan been restructured?
Did you have a separate loan on an investment property which was in arrears or restructured?

Brendan
Click to expand...
Had a look at their definition of non performing and it doesn't apply to my account.
 
Annabelle said:
load had been restructured a long time ago, close to ten years
Click to expand...

OK. What sort of restructure was it? Was it a split mortgage? Or interest and part-capital?

The Central Bank told ptsb that any loans where there was a balance outstanding at the end of the scheduled term of the mortgage was a non performing loan.

Could this be the reason.

Brendan
 
Brendan Burgess said:
Where did you look at this definition?
Click to expand...
in the EBS annual report from 2021 - chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.ebs.ie/content/dam/ebs/pdfs/annual-financial-reports/annual-financial-report-2021.pdf
Brendan Burgess said:
OK. What sort of restructure was it? Was it a split mortgage? Or interest and part-capital?

The Central Bank told ptsb that any loans where there was a balance outstanding at the end of the scheduled term of the mortgage was a non performing loan.

Could this be the reason.

Brendan
Click to expand...
There had been in arrears over 10 years ago and was restructured to lengthen the term and keep repayments up to date.
Brendan Burgess said:
What mortgage rate are you on now?
Click to expand...
I cant seem to find that information anywhere!
 
Annabelle said:
me-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://
Click to expand...

Hi Annabelle
I had not even realised that EBS produced a report separate from AIB.

This is their key definition

Loans are identified as non-performing or defaulted by a number of characteristics. The key criteria resulting in a
classification of non-performing are:
– Where EBS considers a borrower to be unlikely to pay their loans in full without realisation of collateral, regardless
of the existence of any past-due amount; or


Are you sure that there won't be a balance on your mortgage at the end of the term?

(By the way, I have commented that this definition is absolutely nonsense, but it's the definition that the CB imposes on the banks.)

Brendan
 
Annabelle said:
in the EBS annual report from 2021 - chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.ebs.ie/content/dam/ebs/pdfs/annual-financial-reports/annual-financial-report-2021.pdf

There had been in arrears over 10 years ago and was restructured to lengthen the term and keep repayments up to date.

I cant seem to find that information anywhere!
Click to expand...
The correct link is...
This seems to be the relevant section (sorry about the formatting)...
Non-performing/default

EBS's definition of default is aligned with the EBA ‘Guidelines on the application of the definition of default’ under Article178 of Capital Requirements Regulation and ECB Banking Supervision Guidance to Banks on non-performing loans.

EBS has aligned the definitions of ‘non-performing loans’, ‘classification of default’ and IFRS 9 Stage 3 ‘credit impaired’,with the exception of those loans which have been derecognised and newly originated in Stage 1 or POCI (purchased or
originated credit impaired) which are no longer classified as credit impaired but continue to be classified as nonperforming and in default. This alignment ensures consistency with EBS’s internal credit risk management and
assessment practices.
Loans are identified as non-performing or defaulted by a number of characteristics. The key criteria resulting in a
classification of non-performing are:
– Where EBS considers a borrower to be unlikely to pay their loans in full without realisation of collateral, regardless
of the existence of any past-due amount; or
– The borrower is 90 days or more past due on any material loan. Day count starts when any material amount of
principal, interest or fee has not been paid by a borrower on the due date.
EBS’s definition of financial distress and forbearance are included in the AIB's Forbearance policy. Identification of nonperforming exposures ('NPEs') and unlikeliness to pay are included in AIB’s Definition of Default and Credit Impairment
policy.
Click to expand...
Edit: my post crossed with Brendan's.
 
Brendan Burgess said:
Hi Annabelle
I had not even realised that EBS produced a report separate from AIB.

This is their key definition

Loans are identified as non-performing or defaulted by a number of characteristics. The key criteria resulting in a
classification of non-performing are:
– Where EBS considers a borrower to be unlikely to pay their loans in full without realisation of collateral, regardless
of the existence of any past-due amount; or


Are you sure that there won't be a balance on your mortgage at the end of the term?

(By the way, I have commented that this definition is absolutely nonsense, but it's the definition that the CB imposes on the banks.)

Brendan
Click to expand...
Yes there is absolutely no reason for there to be any balance remaining at the end of the term (I assume this would imply there is currently an outstanding balance) They gave no information when the transfer happened except that it was happening. are they obliged to explain do you know?
 
Brendan Burgess said:
It's critical that you find this. How do you know that fixing is a good idea if you don't know what variable rate you are being charged.

Brendan
Click to expand...
ok got them there, currently 2.3% going up to 2.8% in feb - also have a top-up on 3.7 (this seems to have kept its tracker)
 
Those rates are not too bad.

I don't think you would do better by fixing. Of course the 2.8% could increase.


Brendan
 
Brendan Burgess said:
Those rates are not too bad.

I don't think you would do better by fixing. Of course the 2.8% could increase.


Brendan
Click to expand...
Yes Im not too concerned at the moment but I dnt have an option to fix regardless, you are stuck on the rate you are on with them regardless, there is no choices. Im just very confused as to why it was moved/sold.
 
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