Some vulture tracker customers seeing no fall in repayments

[Brendan Burgess]

Confusion after vulture-fund servicer puts tracker customers on fixed rates

A firm that manages mortgages on behalf of vulture fund owners has insisted that customers have not had their trackers taken off them.

www.independent.ie

My summary:
1) They are being charged the correct interest rate
2) The interest rate cut is being passed on
3) But the previous owner of the loan had not set the repayments at a high enough level to clear the mortgage by the scheduled end date
4) So BCM, the new servicer, is not reducing the repayment amount so that the loan will be paid off on time.

But from a customer's point of view, they were expecting their repayments to fall so think that the vulture is not passing on the rate cuts.

The headline is misleading in that the customer is not on a fixed interest rate, but their repayment is fixed.

Brendan

 

[ClubMan]

What, then, is the problem that the CB is aware of and looking into?

The Central Bank said it was aware of a problem at BCM Global, a firm that services loans owned by vulture funds.

...

The Central Bank of Ireland said it “has been engaging with BCM Global ASI Limited in relation to an issue affecting some customers”.

 

[AshKhan]

Confusion after vulture-fund servicer puts tracker customers on fixed rates

A firm that manages mortgages on behalf of vulture fund owners has insisted that customers have not had their trackers taken off them.

www.independent.ie

My summary:
1) They are being charged the correct interest rate
2) The interest rate cut is being passed on
3) But the previous owner of the loan had not set the repayments at a high enough level to clear the mortgage by the scheduled end date
4) So BCM, the new servicer, is not reducing the repayment amount so that the loan will be paid off on time.

But from a customer's point of view, they were expecting their repayments to fall so think that the vulture is not passing on the rate cuts.

The headline is misleading in that the customer is not on a fixed interest rate, but their repayment is fixed.

Brendan

I understand borrower might be annoyed or confused, but if they can afford the increase at least there wont be a lumpsum left at the end.