<snip> mortgage broker

lily_white08

Anyone ever had any dealings with this man?

Just got off the phone from my bank who are trying to help me out with reducing my mortgage payments.
They couldn't believe how this guy relentlessly convinced me to buy into the mortgage I took (6% fixed for 5 years on €361,000, salary=€45,000 p.a.) To be honest, as an off the record remark I was told I should "wring his neck" if I ever met him again.

And before you say anything yes, I know I was the one who signed the dotted line so I should shut up? NO! As a first time buyer I feel I should have been guided better and I feel a little taken advantage of.
This guy told me to go "Find a house and we'll find the money for you, don't worry about the high rate it'll be gone before you know it."

Sorry, the word cowboy springs to mind.

mcaul

I don't blame anyone who signed up for an overpriced overextended mortgage. Mortgage brokers were highly trained sales people who convinced people that they had to get on the ladder. They were only interested in their commisiion and they should have been tightly regulated - also the idocy of mortgage brokers & estate agents being the one and same was utterly crazy.

Some people saw it coming, but it was very difficult for many to see through the hype.

Possibly the budget may have something good for those who bought in 2005 - 2007. I sent a proposal that mortgage relief be extended to 10 / 12 years @ 30% on interest up to €20,000 pa for properties bought in 2005/2006/2007, but in tandem reduce new applicants to 3 years making it revenue neutral. (Doesn't affect me as I bought in 1999 and don't get TRS anymore)

Probably no chance of it happening

Antoennis

lily_white08 wrote: »

Anyone ever had any dealings with this man?

Just got off the phone from my bank who are trying to help me out with reducing my mortgage payments.
They couldn't believe how this guy relentlessly convinced me to buy into the mortgage I took (6% fixed for 5 years on €361,000, salary=€45,000 p.a.) To be honest, as an off the record remark I was told I should "wring his neck" if I ever met him again.

And before you say anything yes, I know I was the one who signed the dotted line so I should shut up? NO! As a first time buyer I feel I should have been guided better and I feel a little taken advantage of.
This guy told me to go "Find a house and we'll find the money for you, don't worry about the high rate it'll be gone before you know it."

Sorry, the word cowboy springs to mind.

When did you do your mortgage? Last year interest rates were going up like crazy every week the banks were increasing and ECB was raising almost every month up until October. If you done your mortgage during this time nobody new what was going to happen. Mind you 5 years is a long time.

mcaul

I thought there was no chance, but the budget had good news for you.

7 years of interest relief at 25%, this will mean a decent buffer until 2013 of approx €208 / month for a single person & €416 if the house was bought with a partner based on interest of €20,000 / year and then graduated down for a further 5 years.

Not a massive amount, but certainly a half decent helping hand.

Example :
Interest Paid: €20,000
Eligible Amount as a First Time Buyer: €10,000 - couple = €20,000
Relief Rate for First Time Buyer: 25%
Relief to be granted is calculated as: €10,000 * 25% = €2,500 - couple = €5000
Monthly TRS based on above figures: €2,500/12 = €208.33 per month - Couple = €416.33

This figure is for first 7 years, thereafter it is graduated downwards for a further 5 years. Only applies to 1st time buyers from either 2005 / 2006 - the details will be in the papers tomorrow.

lily_white08

Hi,

I took the mortgage out during november 2007.
I wonder had he seen what was on the horizon as he seemed very pushy and me not knowing much about the whole mortgage process, just went with it thinking I had to go with it before my chance passed.

My mortgage payments are €1695 after TRS has been taken out, was fine two years ago as I had about three jobs and money wasn't really an object (my only full time job is with the ambulance service)...different story now. The bank were actually livid, only now have they started to take notice of my case, shows how much attention they paid to the finer details of mortgage applications back then!

mcaul

Hi

I just checked what rates were like at that time, and the best 3 year rate was 4.9% with AIB, so 6% for 5 Years was probably about right.

There were also predictions of ECB rates moving to 5% in Early 2008 and then the sh1t hit the fan on world markets and instead of raising rates they kept them steady for a few months until they realised the whole market was near collapse and the agressive rate cutting started.

So whilst I'd love to say that you were wronged on the mortgage rate, it was probably reasonable advice at that time however under no circumstance should you have been offered €361k on a 45k salary - which is where the problem of house price inflation started. Give everyone loads of money to outbid each other and run when the bottom card collapses.

At least the bank is trying to do something for you!

ArmaniJeanss

lily_white08 wrote: »

Hi,
I took the mortgage out during november 2007.

My mortgage payments are €1695 after TRS has been taken out, was fine two years ago as I had about three jobs and money wasn't really an object (my only full time job is with the ambulance service)...different story now.

mcaul wrote: »

Hi
Under no circumstance should you have been offered €361k on a 45k salary - which is where the problem of house price inflation started. Give everyone loads of money to outbid each other and run when the bottom card collapses.

If the OP had '3 jobs' two years ago (which is the time they were applying for the mortgage) then the salary multiple was probably not as bad as €361K - €45K might seem.
OP - is the €45K your current salary? - how much was it at the time you applied for the mortgage?

ElectraBlue

This was not just this guy - a LOT of places were pushing the 5 year rate on customers.

I am with First Active and last May I came out of a cushy lovely 3 year 3.4% fixed rate to very high variable rate of 5%+ that just kept going up and up and up... Before coming out of this fixed rate I signed a form requesting to be transferred straight to the .5% Tracker rate which went 'missing'; a second Tracker request (now 1% or 1.25% as the .5% offer was 'no longer available') made in branch went 'missing' as well.

By the time this was discovered, my variable rate was 6.9% and "going up to 7.2% next week" (or similar, I can't remember exact figures...) I got so upset, the agent dealing with me offered me the 5.99% 5 year fixed rate personally ensuring that it would be "starting immedately"... and I signed up, couldn't afford not to.

Now... :mad: :mad: :mad: :mad: I'm really suffering from it now since my main wages have been reduced, and will be reduced even more in 2010.

Keep telling myself its only 3 more years (!)

padjose

Well, Well, isint it amazing how one sided stories can put a completely different slant on a situation, and one would need to be very careful in casting aspirsions on a persons good character.
The facts of the matter are, you came to me seeking a mortgage for the maximum amount possible to enable you to purchase a home. A couple of institutions were offering better deals if you opted for a 5 years fixed rate mortgage. I would have made it very clear to you at the time what your options were, take a 5 year fixed rate and more money or variable rate and less money. To suggest that I was pushy could never be further from the truth and as a customer I can only give you the best advice possible. I would even go as far as to say that I would never normally recommend a 5 year fixed rate (as the term is too long allowing for rate variances) but it is clear to me that you needed the extra funds to allow you to purchase the property you set out to purchase.
As regards me saying to you (don't worry about the high rate it'll be gone before you know it.) if I gave an opinion on rates, it was clearly a personal opinion based on ECB and economists thinking at the time, and I would certainly not have said it in the tone that you have clearly outlined. I would also have advised that if you opt for a 5 year fixed rate, you are fixed at that rate for the 5 years, the alternative would be to pay a penalty on the get out clause.
The bottom line here is that you clearly knew at the time what your options were based on my advice,( I had nothing to gain financially by you going 5 year fixed or tracker variable) it is also very clear that at the time, noboby knew, even the sharp minds in the ECB that there would be a severe recession and that rates would sink to unprecidented levels. No doubt if rates had gone the other way, you would have posted a thread on Boards thanking me for the very professional advice I gave to you.

danbohan

lily_white08 wrote: »

Anyone ever had any dealings with this man?

Just got off the phone from my bank who are trying to help me out with reducing my mortgage payments.
They couldn't believe how this guy relentlessly convinced me to buy into the mortgage I took (6% fixed for 5 years on €361,000, salary=€45,000 p.a.) To be honest, as an off the record remark I was told I should "wring his neck" if I ever met him again.

And before you say anything yes, I know I was the one who signed the dotted line so I should shut up? NO! As a first time buyer I feel I should have been guided better and I feel a little taken advantage of.
This guy told me to go "Find a house and we'll find the money for you, don't worry about the high rate it'll be gone before you know it."

Sorry, the word cowboy springs to mind.

their was no difference in the commission the mortgage broker recived because you went 5 year fixed , secondly his advice might have been correct at the time with the conditions prevailing , if interest rates had reached 8% by now would you be complaining ? even this is anonymous forum you are defaming a individual and damaging his reputation , you might be bit careful

dudara

Please do not post individual's names on Boards. It may lead to legal issues for both you and Boards.

This one is better suited to the Accomodation & Property forum

dudara

Macsimus

padjose wrote: »

( I had nothing to gain financially by you going 5 year fixed or tracker variable)

danbohan wrote: »

their was no difference in the commission the mortgage broker recived because you went 5 year fixed

Those statements may be not entirely true.. As i'm sure you are aware, most banks had a commission clawback arrangement with brokers which meant that if a mortgage that they arranged, moved from the bank within 5 years there would be pro rata clawback of the commission paid to the broker....

I was actively encouraged by my boss to put people on fixed rates at the time to protect my own and the company's commissions. I ignored this and advised everyone i could to go on a tracker rate, unless they stated they were very uncomfortable with the possiblility of their payments increasing significantly in the first few years...

Thats not to say that the broker didn't genuinely feel he/she was giving the op best advice. However, depending on the financial institution that the mortgage was arranged with, it is highly likely that the broker may have had a potential financial gain, as putting the op on a 5 yr fixed meant that he/she was securing their commission against a potential clawback at a later date, should the op of moved lenders within that period.

D3PO

I read the opening post here and had to laugh. Good old blame game. Typically Irish.

Fact is nobody put a gun to this persons head to sign up to a 5 year fixed rate. The OP did it willingly, regardless of the advise he got your responsible for your own decisions and making sure you have the right level of knowledge to make them.

If somebody told you to jump off a cliff would you do it ? If you want to blame somebody OP blame yourself you made the decision nobody else.

padjose

Macsimus, my brief from my employers was to give clear and impartial advice to my clients and this is what I did at all times, taking into account the economic uncertainties that there would have been at the time. I was never encouraged to recommend one course of action over another for the benifit of the company. The advice I gave was professional and impartial, but Lily_white appears to think differently. Now that I am aware of your comments, (Lily_White) the very least you can do now is to post a response

D3PO wrote: »

I read the opening post here and had to laugh. Good old blame game. Typically Irish.

Fact is nobody put a gun to this persons head to sign up to a 5 year fixed rate. The OP did it willingly, regardless of the advise he got your responsible for your own decisions and making sure you have the right level of knowledge to make them.

If somebody told you to jump off a cliff would you do it ? If you want to blame somebody OP blame yourself you made the decision nobody else.