What happens to my BoS mort. if IRE leave euro, default, and punt nua devalues to 33%

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bdumtish

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I have a 5 yr old euro mort. with BoS, on my sole property, where I live with my family.

Say, we depart the euro on some day in the next year or two, adopt a new currency, default and de-value.
And say 3 or 4 days later appear to be settling at an exchange rate of:
1 punt nua <=> eu .33 cent

Regardless of how how unlikely the scenario is, if it did occur:

Would my mortgate debt and repayments effectively treble?
 
I may not have been clear, but my worry is that a BoS mortgage is a debt to a foreign non euro bank, and that in the event of a devaluation of our next currency, I'd be much better off owing money to an Irish bank. Unfounded?
 
Who knows? Anything could happen - the court cases would run into years and even then ...
 
I am a BoSI mortage holder:

At the time my mortgage and mortgage top up were taken out the BoSI was a retail bank operating with a Branch Network in Ireland.

Based on the above, I don't see BoSI mortgage holders treated any differently to those whose banks are still retail banks in Ireland.

My account is still being monitored/controlled by a company in Ireland called Certus.

But I'm not a legal expert.

Marion
 
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I am in the same position. morgage 100k.repayments 500pm.Ideally it would be Punt nua morgage70k.rps.350?But would it?I also need some feedback.
 
Nobody has an answer to this question as it simply the unknown until or if it happens.
 
This gets brought up quite a bit and as said no one really knows. Most of the "dump the euro" campaigners say that the law of the land would switch things over to punt nua so your 100k Euro becomes 100k Punt Nua on that lonely Friday night. For the majority of people, your wages come via Irish companies so it also goes through the 1 to 1 rate change and you are no worse off regarding your mortgage.

One thing to remember is that the are *lots* of other people with mortgages in similar positions. Short of a mass repossession wave on a scale that would pale other countries, it is extremely unlikely you'd lose the house. Hell just look at the people today who are in massive arrears, not dealing with the banks through re-structuring, mabs, whatever, and still do not have proceedings against them.

The worst situation I can come up with mortgages staying in Euro while wages go to Punt Nua relates to someone who was very prudent in borrowing or has a large cash wedge. Having the capacity to pay the mortgage under a massive devaluation when everyone else doesn't would likely rip through any and all savings you had built up before dropping you back to the same position as the others.
 
This question applies equally to savings and mortgages.
Your mortgage is borrowed in Euro, the bank will have borrowed it from European Banks in Euros.
If Ireland left the Euro, I'd assume the European banks would still want to get repaid in Euro's. Hence our lender would also want to get repaid in Euro's from the borrower. Otherwise they would make a massive loss on the loan.
I queried this some months ago with RaboDirect in regard to savings, if Ireland left the Euro, would my savings be converted to Punt Nua or left in Euro, and i got a reply along the lines of "The bank will adhere to whatever leglislation is enacted at the time, in the unlikely event that it will happen". You can take from that, what you like!
 
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