Property purchased during the height of the Celtic Tiger 2005 and went to Ulster for an investment mortgage but they suggested this type of 'loan' to me because it was way easier to get me the money. Something about it being easier to avoid the rules of mortgage lending. Interest rate was excellent so I went for it as I paid a 'margin' of 1.6%. Over the Cost of Funds.
History
Purchased with a Facility letter. Paid same amount monthly. I borrowed more for renovations in 2006, which was added to the loan and I was on a fixed rate of 3.21% with a margin of 1.6% in 2006. Title changed from Loan to Loan Fixed Int. The monthly amounts were set.
October 2014
Account statement shows the overdrawn balance, and then that's all 'paid off' by Chap/International. with Interest to close. And account is zero. Plus an account closed final document.
Everything changed as regards formalities when I fixed in 2014 and there was a much more complicated procedure. More so than getting the initial loan. Cost of funds were now about 1% plus my margin of 1.6% Referred to as 'loan' and 'facility' in docs, plus Capital Markets, hedging, capital markets terms of business. I was sent an amortisation able. Rate was great so all good.
I have their definition of Cost of Funds.
An annual review was carried out whereby I'd to prove our incomes.
I fixed again in 2019, the credit facility letter was now a lot longer. Rate was Cost of Funds .36% plus my margin of 1.6%
When the fix was up this year I was denied a new fix because there was no 1 or 2 year rate, there was a 5 but I didn't have enough time left for that. Which pretty well annoyed me. Loan transferred to AIB this year.
Statements
My mortgages sent me an annual statement of interest. This type of loan does not so I requested one. It was incorrect the second year so I asked them for a correct one. Sometimes it was different forms. Mentioned 'Bus Term Loan Cap&Int Account. Other times it was just 'loan'.
I received a bank statement with the amount borrowed as OD (overdrawn). My monthly amount is in lodgements and the interest and capital amount is as 'withdrawn. Interest is in varying amounts initially, quarterly. May/August/November. Looks like a normal bank statement. A4. But it did not look like my smaller monthly bank statements for my UB current account. In October 2006 the statements were now no longer A4.
I got a table for 5 years when I fixed in 2014 from Capital Markets which outlines the fixed rate and how much is capital and how much interest.
I chased up and got an interest certificate (needed for my rental tax returns)
From Jan 2010 to Jan 2014 I received a document with the interest rates outlined monthly. But not 1st to 31st month. So 18 Jan 2013 to 7 Feb 1.43%. 10 Jan 2014 to 17 Jan 1.05%.
At some stage in 2019 I was variable and got emails every couple of weeks driving me bonkers. Title EUR Loan Rollover with Decrease. (and Fixed rate Option Euribor Loan) Which has a rollover amount (the capital) and the interest. For say a month eg 4 Oct 2019 to 3 Dec 2019. With also an effective date. and new rollover with the payment subtracted I assume.
As I hated that I fixed again in 2019 and received a new amortisation table bringing me to Nov 2022. My annual loan statement were now A4 again. With monthly payments and called Repricing.
I was sent a table in 2016 onwards, which had Principal balance refinancing in Jan 2016 and ends with principal balance at year end, showing monthly payments.
Refunds - 1€10,500 in 2012
In mid 2012 my relationship manager said my name/account had come up at a meeting and he noticed there was something wrong with my account. My loan had been transferred to Business Banking. Previously it was the Commercial Division (I had no clue about any of this). This phone call came up as a result of the annual review.
I received an email with the refund calculated manually. From Feb 2010 to June 2012. And my account was credited with the refund. Basically 11 credits of interest amount circa 1K quarterly it looks to me. I never understood it but said to myself I'll deal with this in the future.
Subsequently it was explained as an error as they incorrectly applied a fixed rate from 5 Jan 2010 to 13 June 2012.
Refund 2 - 2019 - €1100
Letter says "there was an interest overcharge. Due to 2012 definition change of Cost of Funds. A variable component. And my rate on my account from 26 April 2012. And that the legal rules didn't allow this for my type of loan. Causing an overcharge. Despite my being on a fixed rate"
They gave me a refund of overcharge of €949 from 14 June 2012 to 4 Nov 2014. And threw in an addition €161 to make me feel good about it. Called Additional Interest. And 'compensation'. yippedy do da. There was no physical way a mere mortal like me could figure out how they came up with those figures.
So I foolishly went into battle with them because I use interest paid as a tax deduction on rental tax returns. I have my phone calls and emails etc. I argued Ulster should pay an advisor to
a) check all interest charged on the account from year 1
b) pay an accountant to redo my tax returns for all years involved. Obviously the bank refused because they could not care less.
c) I also argued my compensation amount. Why should they compensate me at 3% when they are charging customers 20% on overdrafts etc.
Result was nada. Their view that it was up to me to pay an advisor/accountant. And I lost the will to live dealing with them. Which I well know is a commercial tactic. (I took them all the way to the ombudsman on another account, lost most of it but got compensation for their handling. If it were now I believe I would win as the new ombudsman was not in hock to the banks)
Refund 3 - 2019 €67
Was because Refund 2 was not calculated correctly. Wrong dates used.
Refund 4 May 2013 - €700
Was because Refund 2 and 3 were not calculated correctly. "not rounded down to the nearest one twentieth of one percent"
History
Purchased with a Facility letter. Paid same amount monthly. I borrowed more for renovations in 2006, which was added to the loan and I was on a fixed rate of 3.21% with a margin of 1.6% in 2006. Title changed from Loan to Loan Fixed Int. The monthly amounts were set.
October 2014
Account statement shows the overdrawn balance, and then that's all 'paid off' by Chap/International. with Interest to close. And account is zero. Plus an account closed final document.
Everything changed as regards formalities when I fixed in 2014 and there was a much more complicated procedure. More so than getting the initial loan. Cost of funds were now about 1% plus my margin of 1.6% Referred to as 'loan' and 'facility' in docs, plus Capital Markets, hedging, capital markets terms of business. I was sent an amortisation able. Rate was great so all good.
I have their definition of Cost of Funds.
An annual review was carried out whereby I'd to prove our incomes.
I fixed again in 2019, the credit facility letter was now a lot longer. Rate was Cost of Funds .36% plus my margin of 1.6%
When the fix was up this year I was denied a new fix because there was no 1 or 2 year rate, there was a 5 but I didn't have enough time left for that. Which pretty well annoyed me. Loan transferred to AIB this year.
Statements
My mortgages sent me an annual statement of interest. This type of loan does not so I requested one. It was incorrect the second year so I asked them for a correct one. Sometimes it was different forms. Mentioned 'Bus Term Loan Cap&Int Account. Other times it was just 'loan'.
I received a bank statement with the amount borrowed as OD (overdrawn). My monthly amount is in lodgements and the interest and capital amount is as 'withdrawn. Interest is in varying amounts initially, quarterly. May/August/November. Looks like a normal bank statement. A4. But it did not look like my smaller monthly bank statements for my UB current account. In October 2006 the statements were now no longer A4.
I got a table for 5 years when I fixed in 2014 from Capital Markets which outlines the fixed rate and how much is capital and how much interest.
I chased up and got an interest certificate (needed for my rental tax returns)
From Jan 2010 to Jan 2014 I received a document with the interest rates outlined monthly. But not 1st to 31st month. So 18 Jan 2013 to 7 Feb 1.43%. 10 Jan 2014 to 17 Jan 1.05%.
At some stage in 2019 I was variable and got emails every couple of weeks driving me bonkers. Title EUR Loan Rollover with Decrease. (and Fixed rate Option Euribor Loan) Which has a rollover amount (the capital) and the interest. For say a month eg 4 Oct 2019 to 3 Dec 2019. With also an effective date. and new rollover with the payment subtracted I assume.
As I hated that I fixed again in 2019 and received a new amortisation table bringing me to Nov 2022. My annual loan statement were now A4 again. With monthly payments and called Repricing.
I was sent a table in 2016 onwards, which had Principal balance refinancing in Jan 2016 and ends with principal balance at year end, showing monthly payments.
Refunds - 1€10,500 in 2012
In mid 2012 my relationship manager said my name/account had come up at a meeting and he noticed there was something wrong with my account. My loan had been transferred to Business Banking. Previously it was the Commercial Division (I had no clue about any of this). This phone call came up as a result of the annual review.
I received an email with the refund calculated manually. From Feb 2010 to June 2012. And my account was credited with the refund. Basically 11 credits of interest amount circa 1K quarterly it looks to me. I never understood it but said to myself I'll deal with this in the future.
Subsequently it was explained as an error as they incorrectly applied a fixed rate from 5 Jan 2010 to 13 June 2012.
Refund 2 - 2019 - €1100
Letter says "there was an interest overcharge. Due to 2012 definition change of Cost of Funds. A variable component. And my rate on my account from 26 April 2012. And that the legal rules didn't allow this for my type of loan. Causing an overcharge. Despite my being on a fixed rate"
They gave me a refund of overcharge of €949 from 14 June 2012 to 4 Nov 2014. And threw in an addition €161 to make me feel good about it. Called Additional Interest. And 'compensation'. yippedy do da. There was no physical way a mere mortal like me could figure out how they came up with those figures.
So I foolishly went into battle with them because I use interest paid as a tax deduction on rental tax returns. I have my phone calls and emails etc. I argued Ulster should pay an advisor to
a) check all interest charged on the account from year 1
b) pay an accountant to redo my tax returns for all years involved. Obviously the bank refused because they could not care less.
c) I also argued my compensation amount. Why should they compensate me at 3% when they are charging customers 20% on overdrafts etc.
Result was nada. Their view that it was up to me to pay an advisor/accountant. And I lost the will to live dealing with them. Which I well know is a commercial tactic. (I took them all the way to the ombudsman on another account, lost most of it but got compensation for their handling. If it were now I believe I would win as the new ombudsman was not in hock to the banks)
Refund 3 - 2019 €67
Was because Refund 2 was not calculated correctly. Wrong dates used.
Refund 4 May 2013 - €700
Was because Refund 2 and 3 were not calculated correctly. "not rounded down to the nearest one twentieth of one percent"
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