KBC Bank Rant

bobbybud

Have 2 mortgages with KBC. The first is our existing house for some 6 years now and the 2nd on a self build property which will be ready in 3-4months. Have requested to covert to interest only on our original house whilst it is on market for sale/rent. Reply "no can do"
The self build property has been on interest only as stage payments were made. As they have now reached end of construction, from 1st August, payments will rise from €656 to €1657 pm!
We have both experienced income drops of 35% since construction has started and are living hand to foot by end of month. KBC still say "no can do" when we requested a 12 month extension of interest only period to allow us to finish new house, move and sell/rent our old house hopefully.
Anyone else getting the door slammed in their face like this?
Have tried contacting MABS but they said "they will get back to me in the future with an appointment"!!
As KBC get both mortgages repaid by monthly Direct Debit, is it time to....
1. Wait for MABS but be hungry all during August.
2. Go to of the new debt management companies.
3. Cancel both Direct Debits and pay them interest only by cheque. They might be more accommodating then when their DD Is not coming go them like clockwork every month.
I thought the government had issued guidelines for banks to be more accommodating!
Any advice appreciated. Less than two weeks left to make a decision.
Bobby

unclebill98

I think your taking the wrong stance here.

Firstly, interest only or reduce payments are normally only given in cases where there is a job loss. They should have at least assess your case by taken all income and outgoings into account. Normally this would result in a % drop in mortgage repayments but never a full interest only payment.

Like most of these type lenders the mortgage is there main source of income so they are not going to be very flexible and will push you until you pay or until you can't.

MABS are not going to sort out your debt. They advise and manage your money. In short, they'll keep you going but will not solve your issues long term. At the moment the waiting list can be week, months based on how serious your case is.

These Debt companies will only do the same and all of these places will do nothing more than what you can do for yourself.

Arrange to meet with your lender and bring in a budget planner detailing income and outgoing based on your situation when both mortgages are going full. If they refuse to reduce it based on your income then its in their opinion you can afford the mortgages. If your not happy with that, then make a complaint to them and go through their complaints process and obtain there final response on the matter. If this is not to your liking then go to the Ombudsman at that stage.

Not paying your mortgage and cancel'in your DD will only make your case harder. Keep up repayments until you at least take it to the ombudsman. Make it clear to KBC that at some stage you will default on your mortgage. Keep a copy of all letters to and from the bank and a note off all the calls, including names of people you spoke too, what they said and what they offered to do and more importantly did they do it.

Best of luck.

chris85

I think you are taking the wrong stance here too OP. Dont blame the banks on this, try work with them. The banks cant continue to have you on interest only. how long will your income drop last? IF you are going to be on this reduced income for a few years then what do you expect the bank to do.

You sound suprised the self build is going up in payments. you had to be aware of what they were going to jump to before you started the build. the rates and so forth would have been advised to you off.

I would not recommend cancelling the DD and paying the interest only by cheque. As this interest only payment was not agreed they will be persitent in recovering the principle amount. They certainly wont be bullied into it.

MABs and the debt management companies can help manage your money but if you keep to contractual payments then not much they can do.

jor el

bobbybud wrote: »

1. Wait for MABS but be hungry all during August.

As mentioned, MABS won't solve the problems, they can only offer advice, but based on your specific circumstances.

bobbybud wrote: »

2. Go to of the new debt management companies.

Very bad idea. They will charge you money (so more debt for you) and can do nothing but advise too. How reliable their advice is, is anyone's guess. This is an unregulated market, so they could tell you absolutely anything in order to get money from you.

bobbybud wrote: »

3. Cancel both Direct Debits and pay them interest only by cheque. They might be more accommodating then when their DD Is not coming go them like clockwork every month.

Another very bad idea. Cancelling your mortgage payment will not make them more accommodating, it's likely to bring on court cases, and probable injunctions, after which you will be in an even worse case.

While waiting for MABS, try to arrange an appointment with the lender so that you can talk to them in person. Bring along all relevant financial info, and see if you can work out some sort of deal.

bobbybud wrote: »

I thought the government had issued guidelines for banks to be more accommodating!

Guidelines being the important word, it's not a law, or even a requirement. Besides which, they do seem to have been accommodating toward you already, having had both mortgages on interest only for a year.

superbad50

I too have been dealing with KBC on mortgage arrear's. I originally got 1 month interest option, circumstances still the same so requested an additional extension in which I got with no problems. I found the bank very helpful and concerned . I would have to agree with the other comments. The interest extension is purely for people who lost there jobs.

I know the government bro
ught out a clause of some sort were the banks cannot proceed for legal demands for 2 years but am not sure if your situation fits the bill.

I too would suggest going to the bank in person and explaining your situation. Best of luck