Rise in repayments

[bond-007]

Can a bank raise your mortgage repayments with only a weeks notice?

 

[rmelly]

What do the Terms & Conditions say? Is this a mortgage that has already been drawn down? If it's linked to the last ECB rate change then presumably you have been expecting it, so it isn't completely out of the blue and not budgeted for?

 

[bond-007]

This is nothing related to the ECB change. We had that rise last month. It is completely out of the blue.

 

[ClubMan]

What exactly does the letter say? What specifically changed? The interest rate charged? The way that they calculate interest? Your mortgage interest relief/total interest bill? Something else? If it's a standard variable rate mortgage then they can change the margin any time they like as far as I know. As above your T&Cs should clarify.

 

[hippo.hi]

yes, if it's variable (not tracker) banks can increase them when they want regardless of ecb (or decrease)

 

[bond-007]

Ok, I can accept that, but can they increase the repayments at 1 weeks notice?

 

[ClubMan]

Depends on the T&Cs of your loan agreement.

 

[Towger]

Ok, I can accept that, but can they increase the repayments at 1 weeks notice?

They gave you notice, AIB only bothered to do that once for me!

 

[bond-007]

Really?

Ok, I should count myself lucky so.