mortgage settlement figure

J

Jimmy Mc Donald

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My mortgage was originally with KCB and two years ago it was transferred to the Bank of Ireland. In November of 2023 I rang the B of I to see what was outstanding on my mortgage. They said it was €84000. I was then looking at retiring and using my lump sum to clear my mortgage and other small loans. I called the bank again in December to see what was outstanding on my mortgage. They said that it was around €83400. I then decided that it was a good decision to retire and clear my mortgage and small loans. My pension lump sum came through yesterday (June20th) and I went into the Bank of Ireland with the intention of clearing the outstanding balance on my mortgage. I rang the mortgage department and they said that there were two accounts attached to the mortgage. The first account had an outstanding balance of €80973.27 and the second account had an balance of €44318.15. This was never mentioned last year and I said that retired on the information that the gave me. They said that the account was split but could couldn't say why. I lodged a formal complaint and they said that they would check back on the phone conversations and would get back to me. I never missed a mortgage repayment and didn't get a top up on the mortgage. Where do I stand legally as I don't have the means to clear the second balance.
 
My mortgage was originally with KCB and two years ago it was transferred to the Bank of Ireland. In November of 2023 I rang the B of I to see what was outstanding on my mortgage. They said it was €84000. I was then looking at retiring and using my lump sum to clear my mortgage and other small loans. I called the bank again in December to see what was outstanding on my mortgage. They said that it was around €83400. I then decided that it was a good decision to retire and clear my mortgage and small loans. My pension lump sum came through yesterday (June20th) and I went into the Bank of Ireland with the intention of clearing the outstanding balance on my mortgage. I rang the mortgage department and they said that there were two accounts attached to the mortgage. The first account had an outstanding balance of €80973.27 and the second account had an balance of €44318.15. This was never mentioned last year and I said that retired on the information that the gave me. They said that the account was split but could couldn't say why. I lodged a formal complaint and they said that they would check back on the phone conversations and would get back to me. I never missed a mortgage repayment and didn't get a top up on the mortgage. Where do I stand legally as I don't have the means to clear the second balance.
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So you had a mortgage and you did not know roughly speaking what the balance was?

Have KBC or BoI never sent you a statement?

Come on! You knew that the balance was about €125k and you just needed to know exactly what it was.

You are chancing your arm to exploit some error made in a phone call.

Brendan
 
Brendan Burgess said:
So you had a mortgage and you did not know roughly speaking what the balance was?

Have KBC or BoI never sent you a statement?

Come on! You knew that the balance was about €125k and you just needed to know exactly what it was.

You are chancing your arm to exploit some error made in a phone call.

Brendan
Click to expand...
with no hope of success!
 
Every year you get a mortgage statement. You would have received one this year too, but from Bank Of Ireland. It will give details of all payments made separated into interest payments and capital payments.

Having two balances may suggest that you split the rate at some point with XX% being fixed and XX% being variable.

Where you stand legally is the bank still has a mortgage over the property until the last cent is paid. Anyone who tells you otherwise is telling you fibs.
 
When you checked the settlement amount, I would imagine you were asked for an account number and they gave you the information based on that account.
If you had a second account but didn't provide any number, why would they have checked?
If you knew your account number, it means that at some point you received some documents with it, I find it extraordinary that you would have another account with no information provided for years.
 
Do you have any documentation from KBC? That should be the starting point to see what balance was remaining and if mortgage had been split at that stage or was somehow split when it went to BoI.
Obviously the first thing to determine is if you owe that additional 40k or if its an admin error.
I would imagine that if it's valid, you wouldn't have any valid complaint as you owe it.
Take a step back, dig out any documents that you have. Check the outgoing payments to see what you were paying out and of it was against one or two accounts.
 
Brendan Burgess said:
Come on! You knew that the balance was about €125k and you just needed to know exactly what it was.
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The mortgage was transferred because KBC left the market. I don't think the average customer would know how much was left on their mortgage (even roughly) unless they were switching themselves.
 
Hi Corola

I agree that there is a shocking ignorance among people about their finances. I was surprised recently when a friend of mine whom I believed was switched on, did not know what interest rate he was being charged.

And I know that some people do not open correspondence from the bank.

And I know that mortgage statements are badly presented and many people have difficulty understanding them.

But most people know how much, roughly speaking, is outstanding on their mortgage. And if they are making a major decision about retirement, then they would definitely know. And if they don't know, then they should not blame the bank for any decision they made based on incorrect information over the phone.

Brendan
 
Op mentions other small loans in their post, I'm wondering if they were additional home improvement loans or other loans secured on the property and were actually more then they realised.?

It sounds as if the split was done at the KBC end and in fairness to the OP, it is not beyond the bounds of possibility that some error was done in the transfer. Regardless, he should have a good idea as to what is outstanding as the bank rights to him every year with a statement and a statement of interest paid. I am wondering if for some reason the interest was being warehoused and he did not understand what he was doing

regardless, until he replies, we won't know
 
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