mortgage restructuring fees? A kick when you are down.

L

luckyspike

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1
I recently contacted my Building society to warn them that I may soon fall into arrears as I am out of work. I requested an interest only period and a six month period was agreed. I did this with their advertising in mind as they actively request that you enter into consultation and that they will be 'transparent' in the process. I have never been in arrears in 14 years but they have now reported me to ICB which will effect future credit and they also charge me a fee of €778 for the pleasure of dealing with them, one meeting.

This 'credit cost increase' seems to be totally immoral and against their stated policy, they are meant to be helping in times of difficulty, not making extra profit of my misery. The ICB reporting is just unfair. Am I just being naive? Is this sort of 'help' fully sanctioned by the government?
 
How do you mean they have charged you a fee of €778? Does this relate to the extra cost you will incur repaying the capital over a reduced term when the interest only period is up. If so then that is normal.

As for 'reporting you to ICB', again what do you mean, are there missed payments showing up on your record or what.
 
You are naiive , but then we all were to believe our {lenders} act with integrity!!!
I would think the 778 is the extra interest you incur on (missing) payments.
Send a request to ICB with 6 euro to Icb Newstead,Clonskeagh Rd Dublin 14, for a print out of your ICB. On receipt if it looks unfair contact your lender to get it mended. ps I wouldn,t worry too much on credit ratings provided you can show good cause.
Yup ,this is the {help} we can expect from Government and their Banking, Ombudsman buddies !!!
 
Interest is calculated on a mortgage on the balance outstanding every day. If you delay paying your mortgage, you will be charged additional interest. That is perfectly normal and perfectly right.

If it's your home, they are not allowed charge you any other fees or penalties under the Mortgage Arrears Code.

They are obliged to report the restructuring to the ICB although it does not affect your score.

Brendan
 
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