My Mortgage - Ripped Off

Iri$hKeLt

Heh,

Six months ago I switched my mortgage to IIB now known as KBC homeloans. I am signed up to a 3 year fixed deal which I never knew until two months ago. Now with interest rates coming down im losing a fortune. I am currently paying interest only my problem is I should just be paying the interest, this is a joke it being fixed.

My repayment interest only is 890euro per month for 208000
I got a quote from another company yesterday for 600euro per month for 208000

I rang my mortgage company today and they told me to break out of my contract would cost me 12,000euro ONLY.

This is a joke im paying 300euro a month dead money. The 890euro would cover a repayment mortgage. I want to break this deal but im not paying 12,000euro :eek:

Does anyone have any information to help me? I didnt even know I was signing up for fixed!! Its stupid paying interest only and being on a fixed rate

:mad:

Any help much apprciated,
brendaN

ntlbell

no advice really.

when your signing up to such a big commitment make sure you understand 100% what you're signing up to.

Evertonia

You took out a mortgage for 208,000 and didn't know what type of mortgage you had taken out?? Find it hard to believe!! There is always a penalty for breaking a fixed rate mortgage and only way of getting out is to pay the 12,000.
If interests went up instead of down then you would not be complaining. In 2 years interest rates may be above the current fixed rate you are on and you will be paying less than the going rate. You should have taken out a tracker mortgage if you wanted your mortgage to move with cuts and hikes in interset rates by the ECB.

Sleipnir

You signed up to a rate without checking it first so....that's it really. Fixed rate is always higher much higher than a variable so if you miss that, you just haven't done your homework.
There's no way out of it without paying up.

Paulw

Have to agree. It really pays (especially in your case) to know what you're signing up to, and potential costs.

Of course, if interest rates had gone the other way, you would be saving plenty. It's the nature of the market. You took a risk in getting a fixed repayment.

I know I took out a 1yr fixed term for my first year, and it worked out well, as interest rates increased. At the end of that I changed to a tracker, and I got lucky with the timing, as interest rates came down.

Changing mortgages can be very costly, depending on the circumstances. I doubt you've any easy way out of your situation.

Iri$hKeLt

To be honest I think it was my father that put me on the fixed!!! Im only young, And hes awful when chosing stuff... I advise him of a mortgage company at the time that would save me over 100euro a month but no he wanted me to join IIB cause hes a member :rolleyes:

Im smart enough when it comes to mortgages and stuff I always do my research I just cant understand why im on fixed.

Reason I listened to him is because he was guarantor. And I have another one in england and only way to get my english mortgage was with IIB no other company would so I guess that was a reason too.

Im very happy with england my repayment was 570stg / month now its only 210stg/ month cause im aon varible.

Im really not happy with my irish mortgage, I heard something on the afternoon show about a woman wanting to break her fixed mortgage and it was possible to get out for a smaller fee but I missed most of it.

Iri$hKeLt

I was advised interest rates were coming down Ireally dont know how this happened. I blame the solicitor she should have outlined this to me.

My papers were wrong 3 times and had to be sent back cause of mistakes!!

Im wondering was this another.

mathie

Evertonia wrote: »

You took out a mortgage for 208,000 and didn't know what type of mortgage you had taken out?? Find it hard to believe!! There is always a penalty for breaking a fixed rate mortgage and only way of getting out is to pay the 12,000.
If interests went up instead of down then you would not be complaining. In 2 years interest rates may be above the current fixed rate you are on and you will be paying less than the going rate. You should have taken out a tracker mortgage if you wanted your mortgage to move with cuts and hikes in interset rates by the ECB.

I'm with PTSB and they didn't charge us a cent to go from fixed to variable. that was six months ago.
M

vms7ply9t6dw4b

If sombody was on a 3 year fixed and they decided to move morgtage providers at the end of that 3 year term would the penalites be any less severe then what they would impose if you moved midway through the 3 years?

Iri$hKeLt

mathie wrote: »

I'm with PTSB and they didn't charge us a cent to go from fixed to variable. that was six months ago.
M

you got very lucky mate, never heard of that...

im paying interest only its stupid that its fixed!!!! Im paying a repayment mortgage atm but really only interest its a joke!

Iri$hKeLt

I got my solicitor fees payed it was a promotion, I was then told if I leave the mortgage companywithin the 3 years I would have to pay them back??? They never said anything about this 12,000euro??

Iri$hKeLt

I think I would pay up to 3,000euro to break this if possible

DJDC

So you describe yourself as "young" yet you pay over €1000 a month in mortgages and own two properties. Also you let your dad decide what mortgage you should choose despite already owning a property in the UK.

Only in Ireland.....or maybe africa or south america.

delly

Sorry, but your solicitor isn't employed to advise you on what type of rate to take. Its down to yourself or your Da in this case.

With my first and my current house I kept looking at the rates and only made my decision at the last moment. It really is a big part of getting a mortgage, so to be ignorant of it is kinda silly tbh.

Paulw

Iri$hKeLt wrote: »

I blame the solicitor she should have outlined this to me.

I'd be surprised if the solicitor was giving you financial advice on what mortgage to take out. They tend to stick to giving legal advice.

You should be able to talk to your bank about switching between fixed and tracker.

But, from the sounds of things, you let others make the financial decisions for you in this case, so only yourself to blame, unfortunately.

stovelid

We're on fixed.

When you choose fixed, you are in effect saying I'm taking a gamble: I'm hedging peace of mind against the possibility that rates could fall.

No use in moaning when you lose.

Sleipnir

There's always a penalty for breaking a fixed term mortgage. It's not up to them to tell you, it's up to you to ask these things.

Sure if there was no penalty for leaving, everyone would be on one when rates are going up and everyone would get on a variable when the rates are dropping!

Iri$hKeLt

As I said, I wanted to take my mortgage out with a different lender but as I was getting my mortgage in england at the same time IIB was the only one to offer me the english mortgage and as my father was guarantor I had no choice but to go along with him.

If it was up to me I wouldhave picked bank of scotland at the time.

woodseb

Iri$hKeLt wrote: »

Im smart enough when it comes to mortgages and stuff I always do my research I just cant understand why im on fixed.

this is obviously not the case, the choice of rate is the main choice you take when getting a mortgage. You would have been offered a number of rates and the fixed rate would have been among the more expensive yet you chose that. Also if you had actually done research you it would have been obvious 6 months ago that rates were on a downward path. You may have got bad advice but don't claim you were ripped off

stovelid

And if you wangled out of the fixed rate, went to tracker or variable and the rates went up again in 3 years time, you'd probably sign right up for fixed again.

You can't expect the bank to care about the fact that you didn't investigate the implications of fixed rate and somehow facilitate you purely on the baiss that it didn't work out financially for you.

delly

Iri$hKeLt wrote: »

As I said, I wanted to take my mortgage out with a different lender but as I was getting my mortgage in england at the same time IIB was the only one to offer me the english mortgage and as my father was guarantor I had no choice but to go along with him.

If it was up to me I wouldhave picked bank of scotland at the time.

It has nothing to do with which bank you went with. They all have fixed and variable rates, so choosing IIB really is a side issue.

Fighting Irish

Iri$hKeLt wrote: »

Heh,

Six months ago I switched my mortgage to IIB now known as KBC homeloans. I am signed up to a 3 year fixed deal which I never knew until two months ago. Now with interest rates coming down im losing a fortune. I am currently paying interest only my problem is I should just be paying the interest, this is a joke it being fixed.

My repayment interest only is 890euro per month for 208000
I got a quote from another company yesterday for 600euro per month for 208000

I rang my mortgage company today and they told me to break out of my contract would cost me 12,000euro ONLY.

This is a joke im paying 300euro a month dead money. The 890euro would cover a repayment mortgage. I want to break this deal but im not paying 12,000euro :eek:

Does anyone have any information to help me? I didnt even know I was signing up for fixed!! Its stupid paying interest only and being on a fixed rate

:mad:

Any help much apprciated,
brendaN

So you got a 200K mortgage without reading the terms and conditions? lol

Evertonia

This is what you get for being greedy!! Two properties!!

Iri$hKeLt

You guys keep talking, I keep saying IT WASNT MY CHOICE can you read

Thanks for your help no more help needed if you arent going to listen.

MY FATHER WAS GUARANTOR I DIDNT HAVE A CHOICE!!!! REGISTER IT PLEASE!! I DIDNT HAVE A CHOICE OR HE WASNT SIGNING

Im looking for a way out now not stupid comments

Iri$hKeLt

And tell me what a solicitor is paid for???

There ament to read out everything to you when signing and let you know exactly what your signing up for. There ament to go through all terms and conditions with you there and then. Dont tell me otherwise

Oh god, another IrishKelt classic.

Is it actually possible for you at all to post in a thread and it not ending up like this? Probably too busy having sex with a beautiful girl last night :P

delly

Iri$hKeLt wrote: »

You guys keep talking, I keep saying IT WASNT MY CHOICE can you read

It wasn't your choice of bank, or to go with a fixed rate?

Going with IIB has NOTHING to do with the fixed rate option, so stop trying to blame your Da, your solicitor or your bank.

Sleipnir

Right, you didn't have a choice. Point is you didn't know that you were on a fixed rate because you didn't find out.

So what are you complaining about? Do you think you can go in to your bank and say "let me out of this for free because my dad had to go guarantor so I had no choice but to go with you"

jimmycrackcorm

Iri$hKeLt wrote: »

You guys keep talking, I keep saying IT WASNT MY CHOICE can you read

Thanks for your help no more help needed if you arent going to listen.

MY FATHER WAS GUARANTOR I DIDNT HAVE A CHOICE!!!! REGISTER IT PLEASE!! I DIDNT HAVE A CHOICE OR HE WASNT SIGNING

Im looking for a way out now not stupid comments

Perhaps you should ask your father to pay. Did he actually insist on a fixed rate or just that it should be with iib.

Evertonia

Options:

1) sell property
2) acknowledge the fact that your mortgage has not gone up since you took it out, the repayments are the same.
3) Thank you dad for you being able to buy the property in the first place, instead of blaming everything on him!

Iri$hKeLt

delly wrote: »

It wasn't your choice of bank, or to go with a fixed rate?

Going with IIB has NOTHING to do with the fixed rate option, so stop trying to blame your Da, your solicitor or your bank.

Ok it was all my fault I lied

Iri$hKeLt

Rojomcdojo wrote: »

Oh god, another IrishKelt classic.

Is it actually possible for you at all to post in a thread and it not ending up like this? Probably too busy having sex with a beautiful girl last night :P

classic long time since I heard someone say that

(And that was my bro that posted that haha)

Sleipnir

Iri$hKeLt wrote: »

Ok it was all my fault I lied

YOU wanted a house. Your dad offered to go guarantor which was decent of him seeing as he was putting his own house on the line. They offered you a fixed term mortgage. YOU agreed to it. You're dad couldn't have because he's the guarantor. YOU signed the documents.

The responsibility lies squarely with YOU.

Paulw

Iri$hKeLt wrote: »

And tell me what a solicitor is paid for???

For making sure all legal documents are signed and checked. To ensure that the purchase of the property is legal and proper.

They tend not to give any advice on what mortgage to take out, or where to take a mortgage.

While your father may have insisted on using IIB, surely IIB gave you options - different fixed terms/rates, etc.. I know my bank gave me the options of 5 different packages.

You seem to be trying to blame everyone else, except yourself. You signed the documents and it's your mortgage. Live with it.

Iri$hKeLt

Tis is the facts:

Took my mortgage out in 2007, I had to go to first active because he was at first active and he was guarantor I didnt have a choice.

Switched my mortgage mid 2008, Had to go with IIB cause he had changed and because my english mortgage being with IIB prob made sense I didnt mind that.

My father sorted everything for me for the switch, He made all phonecalls etc. All I had to do was sign. I didnt know it was fixed, More than likely he thought it made sense to know exactly my repayments. I dont mind that if I have to pay this 900/month so be it my rent and tax relief just covers it but I could still be making money on it thats my problem.

My choice I would have had IIB for my english mortgage and Halifax for my irish mortgage as I believe they have the best rates. I had no control as he was guarantor, I dont blame him if it wasnt for him I wouldnt have either mortgage all im looking for is a way out to save me money.

I studied everything when making my choices but all choices werent mine to make. Hes guarantor so obviously he has a big say. I would have done things differently so dont start blameing me. I know the facts.

If theres no way out so be it, But I heard a woman on the afternoon show about breaking the deal and she was advised she could a far cheaper way.

I think there is a way around it.

Also as I said I was advised by IIB if I switch my mortgage within the 3 years I would have to pay the solictior fees they paid for me. Not a futher 12k.

Iri$hKeLt

Sleipnir wrote: »

YOU wanted a house. Your dad offered to go guarantor which was decent of him seeing as he was putting his own house on the line. They offered you a fixed term mortgage. YOU agreed to it. You're dad couldn't have because he's the guarantor. YOU signed the documents.

The responsibility lies squarely with YOU.

My father doesnt even know why im on fixed term.

The solicitor should have advised me before I signed dont tell me otherwise. Thats there job to ensure you know what your signing up for

Sleipnir

No, the solicitor will advise you if it's legal. He's not going to give you financial advice!??

So neither of you checked the rate???! How can you not know the most basic thing about your mortgage? That's not even small print!

Paulw

Iri$hKeLt wrote: »

My father sorted everything for me for the switch, He made all phonecalls etc. All I had to do was sign. I didnt know it was fixed.

Since those are the facts, it's clear. YOU didn't understand what you were doing and just did as your dad told you, and you signed documents without reading/understanding. So, who is at fault, if it's not you?????


As for getting out, if your bank are saying there are set penalties, I doubt there are easy ways out. Maybe the person on the TV show had a different type of policy.

You may be able to find the show on the rte website.

Iri$hKeLt

To be honest im not here to find out whos at fault.

Ok its my fault, Im just looking for advise in breaking this it doesnt matter whos at fault anymore whats done is done. Can we please drop this and get back to the topic

Sleipnir

Iri$hKeLt wrote: »

To be honest im not here to find out whos at fault.

Ok its my fault, Im just looking for advise in breaking this it doesnt matter whos at fault anymore whats done is done. Can we please drop this and get back to the topic

We keep telling you, you can pay the 12k or not. Those are your choices.

Sometimes mortage providers will let you change if you're near the end of your fixed term anyway but that's about it.

If you want out early, you pay the penalty.

Paulw

Iri$hKeLt wrote: »

My father doesnt even know why im on fixed term.

The solicitor should have advised me before I signed dont tell me otherwise. Thats there job to ensure you know what your signing up for

It is NOT a solicitors duty to ensure you know what mortgage you are taking out. Those financial arrangements are between YOU and the bank.

In most cases, the solicitor doesn't care what sort of mortgage you have, only that the fees are transferred correctly, and the sale goes through properly.

Your father, yourself and the bank obviously signed the mortgage contracts, which would have clearly stated the type of mortgage, the term, the initial repayments, etc. Stop blaming others for your own mistake. Next time, read the documents before you sign anything.

Audio

Face facts chap. You made a mistake. The only way you will get out of is by paying the penalty. Simple as that. I worked for a large Irish Bank for a number of years and there is no way around it. Your mistake, not the solicitor. You should read what you are signing and not expect someone to read it for you.

Iri$hKeLt

Hi Hasselhoff

I have 2 fixed rate mortgage with First Active at 5% , I contacted them to find out what penalty I would have to pay to exit redeem both mortgages. They immediately quoted me 6 months interest for a redemption penalty which equates to 12000€ in total. Based on advice I received here I then asked her to forward to me my contract details highlighting where exactly it states that I must pay 6 months penalty. 3 days later I received an update from the bank stating that they "reviewed" the case and waivered the penalty. They also never forwarded me the contract details stating I would have to pay 6 months interest for each mortgage.

Interesting, I wonder is the 6 month thing pulled out of a hat and because I queried the contract they backed off. Perhaps your quote is plucked from the sky too and really is open for negotiation as clubman mentioned

Because of no penalty I have currently asked if I can go back onto the tracker mortgage I was on before fixing, awaiting their response and will post it . Anyone ever moved from fixed back to tracker and stayed with the same bank ??
Reply With Quote

http://www.askaboutmoney.com/showthread.php?t=99796

delly

Eh, just a thought here, but if your paying €890 a month, surely the most they can charge you is 6 x €890 = €5,340???

Paulw

It may differ from bank to bank and from mortgage to mortgage, depending on the rates/terms, etc.

Iri$hKeLt

delly wrote: »

Eh, just a thought here, but if your paying €890 a month, surely the most they can charge you is 6 x €890 = €5,340???

I havent got through all the posts on that website yet but its very interesting so far. And my thinking would be 6 x monthly repayments. I think I will send IIB a email and try get it to someone high up and explain to them I cant keep making these repayments etc etc.

Hopfully they show some symphaty. I will keep my mortgage with them but id live to get some of the savings since ecb reduced the rates dramatically and there will be another drop hopfully next month.

Im just not impressed im interest only and im paying so much more than what my interest only should be. But as you said I signed the documents. Im just looking for a way out now.

Iri$hKeLt

blah

Iri$hKeLt

Its a basic email, but hopfully they can do something for me

(I lied about losing my job but hopfully it will sound more.....)

Will keep you updated with the reply

Paulw

Iri$hKeLt wrote: »

(I lied about losing my job but hopfully it will sound more.....)

Believe it or not, that's then considered fraud. Just be very careful what you say in emails, and what you post on the internet. It may very well come back to bite you.

TheBigLebowski

Mother of Jaysus! Do you expect them to take that seriously? Did you get a 12 year old to write it?

delly

Eh, it wouldn't be exactly how i'd put it, but if your happy with it...


With regards to 'losing your job', i don't think you should make things up when it comes to your mortgage provider. They will also know that you'll have zero chance of getting a mortgage anywhere else, so there's no point in saying you might go elsewhere.