Mortgage lenders agree framework to facilitate switching from vultures

[Brendan Burgess]

It looks as if they have passed on only 2.66% of the ECB rate rises so could you verify this. When did you last get notified of an increase.

So your average rate is 4.4% so no point in switching

 

[Duff123]

Last notified March, it is correct.

Fully expecting interest rate increase soon.

It's the 89k parked that we need to address switching to full payments with fund with increasing rates is not achievable.

 

[ClubMan]

Last notified March, it is correct.

Fully expecting interest rate increase soon.

It's the 89k parked that we need to address switching to full payments with fund with increasing rates is not achievable.

Isn't that moot - at least for the moment - since, as @Brendan Burgess points out, there's no point in switching right now given the effective rate that you're on and the prevailing rates environment?

It looks as if they have passed on only 2.66% of the ECB rate rises so could you verify this. When did you last get notified of an increase.

So your average rate is 4.4% so no point in switching

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[Resolution]

Where is the innovation? Where are the ideas? Anyone would think the banks don't want these customers!

Zero innovation. On initial reading of the BPFI report on the 'New Supports', there appears to be no change to eligibility criteria to switch? It looks like the new supports are an information campaign on the options that are already there already? Great for people who didn't realise they had options but no real change to the state of play for many mortgage prisoners.

I spoke to someone in MABS last week who knew nothing about it and said there is currently a 10-12 week wait to see MABS, primarily because they are swamped with Vulture customers in distress.

 

[Brendan Burgess]

I am reading the criteria again

Banking industry announces support measures for mortgage customers - Banking & Payments Federation Ireland

Wednesday 6th September 2023 – Banking & Payments Federation Ireland (BPFI) has today launched the second phase of its Dealing With Debt campaign to highlight new and existing supports available for mortgage customers who may be experiencing financial difficulties in light of the continued cost...

bpfi.ie

The initial criteria agreed by the main lenders are as follows:

• Customers must be repaying capital and interest on the full outstanding mortgage i.e. there is no split/warehoused element of the mortgage, and the mortgage is fully up to date
• The customers’ credit history, i.e. their Central Credit Register (CCR) record, must show a clean repayment track record without arrears for at least the past two years.
• Customers must be able to demonstrate that they have sustainable income which is adequate to repay the mortgage in full over the lifetime of the loan.
• Customers must have a satisfactory bank account performance i.e. no unpaid items such as a direct debit or standing order and all the customers’ other loans/debts must be up to date.
• The current Loan-to-value (LTV) of the mortgage must be less than 90%
• The circumstances that gave rise to any previous financial difficulty must have been resolved.

Once customers meet these initial criteria, applications will be assessed on a case-by-case basis in line with individual lender credit policy.

I wonder if anyone has moved money from the warehouse into the active account and then tried to switch?

Even if they meet the other criteria, I suspect that they will be turned down.

I have asked a few mortgage brokers and they have told me that they have received no updates on changes to lending policies from any of the lenders since this announcement.

Brendan