KBC bank - Mortgage issues

sharonbyrne

hi has anyone had experience in dealing with KBC with their mortgages? I've engaged with them so many times now over 2 years since i got made redundant and they are really difficult to deal with. I have made so many calls, produced financial statements, arranged meetings with managers and still i'm getting no were and no sense is coming out of them.

I have 2 mortgages in my own name - 500k in total on very high interest rates 4.2% home and 5.2% investment. They have been no help, i've been struggling stressing and worrying for so long now that i really wanted to know was there anyone else out there going through the same situation.

I've proposed a split mortgage and was told that because i dont have a pension behind me i cant be considered because they are not guaranteed that i can pay for the other half of the mortgage. There is no sense in what they are saying.

The comments that have been put to me are outrages, i have a 2 smal children, and if i return to employment i will be worse off, i was told that things will get better when they start college by kbc, then i was told to hang prices will increase etc. They are not dealing with the core problem and just kicking the can down the road and getting people more stressed out that cant deal with it in the end.

D3PO

Write to them and propose a solution extending term, split mortgage, selling the investment property and either consolidating the NE into the current mortgage or looking for some deal on the debt or whatever.

Inform them that if you do not rexieve a satisfactory response and engagement by X date that you will be seekign a PIP (Personal insolvency practicionar) to invoke a PIA (Personal insolvency arangement) on your behalf. They will not want you to go this route so it wouldnt be a surprise if they start to play ball a bit more if you threaten this.

Also inform them that you will be communicationg wirth the financial regulator (if you feel you havent been dealt wirth according to the guidlines put forth on mortgage arears conduct)

Personal Insolvency Arrangement
A Personal Insolvency Arrangement (PIA) provides for the agreed settlement of secured debt up to a limit of €3 million (although this cap may be increased with the consent of all secured creditors) and an unlimited amount of unsecured debt. A PIA will run over a period of 6 years, with a possible agreed extension to 7 years.

The PIA works like a Debt Settlement Arrangement in the following ways:

•You must apply through a Personal Insolvency Practitioner (PIP) – see How to apply below
•You must be able to make some repayments to your creditors in return for a discount of your debts
•It is a voluntary arrangement and will have to get the support of creditors – both secured and unsecured – representing at least 65% of your total debt
In addition, over 50% of your secured creditors and 50% of unsecured creditors must vote in favour.

When the agreed period ends, and if your PIA has operated successfully, you will be discharged from the unsecured debts that it covered but the secured debt will only be discharged to the extent specified in the PIA.

read this and get proactive

http://www.citizensinformation.ie/en/money_and_tax/personal_finance/debt/personal_insolvency/personal_insolvency_options.html

antoinolachtnai

I am very sorry to hear about your predicament.

In terms of your actual question, I have dealt with KBC. They are a bit funny in some ways, but in the end of the day, they are a bank like any other. Banks just want to retrieve their money, in full, on time. Failing that, they want to recover as much money as possible. It is just a commercial transaction for them, whilst it is home, and something very personal for you.

You say that they are kicking things down the road. The bank's view (which they might be reluctant to explicitly state) might be that the best way to avoid you having to immediately sell both properties is to defer things. (I say 'might' because I really don't know the whole story, but I am surmising.)

The rate you are paying isn't terribly high. I'm not saying it's low, but it's probably a commercial rate for mortgage money in Ireland these days.

A lot will depend on financial things like whether you have 'equity'? That is, how much are the houses worth more than the loan (if anything)? This will determine how things will move forward. If there is equity, the bank will be anxious to have you sell so they can get their money back.

Another is your total income. We don't know your circumstances, and you would be better not spell them out on this forum. If you can cover the interest, they might be happy enough to let things run. It is not a great situation for them, but it is not terrible.

Another is the property. If it is near Dublin, they may decide that it is better to take their chances with waiting for an increase in values, rather than closing in on you now,

The fact that you have children may make them reluctant to foreclose on you. I suppose this is to your advantage.

I know it is a terrible situation, but there are people that can help. You need to consider the advice that has been given and talk to the likes of New Beginnings. Do not expect things to get sorted out overnight, but there are things that can be done and people who can help.

I think some advice and an interlocutor to help you deal with the bank could be greatly helpful.

You will have to find a way to psychologically deal with the struggle and stress and worry, if not for your own sake, for the sake of your children. I know it is easy for someone else who does not have to live your life to say this, but you are lucky to have your children and a roof over your head. These are the main things. At the end of the day, money matters have to be given their appropriate priority.

Another thought is that ultimately, the only way for you to really resolve this problem will be to figure out some way to make more income. This is the case no matter what happens with the house. I know this probably sounds impossible at the moment, but think about it and something will come up.

TrishSimon

I hope things do get better for you but I have my mortgage with KBC I had various issues with them over the years I have a great credit history and never missed a payment but it was because of me renting my apt I won't go into it but they were of no help and downright rude and were trying to force me to pay extra so I went to the financial ombusdman did the process there they are very helpful and got sorted.

sharonbyrne

TrishSimon wrote: »

I hope things do get better for you but I have my mortgage with KBC I had various issues with them over the years I have a great credit history and never missed a payment but it was because of me renting my apt I won't go into it but they were of no help and downright rude and were trying to force me to pay extra so I went to the financial ombusdman did the process there they are very helpful and got sorted.

Thank you for your response, i may contact them because it is ridiclous i'm also the type of person that wouldnt miss a payment and likes to get things done but sometimes you have to look at the real picture and work a solution not make things worse. lets see the banks have ruined this country and the people in it, the stress and worry people are going through, if i could sell tomorrow i would to pay back the banks, but the bank would make me pay the balance back with a 5.4% interest rate impossible so when does this nightmare end.

TrishSimon

Do honestly they can help you and its all a very easy process

D3PO

sharonbyrne wrote: »

Thank you for your response, i may contact them because it is ridiclous i'm also the type of person that wouldnt miss a payment and likes to get things done but sometimes you have to look at the real picture and work a solution not make things worse. lets see the banks have ruined this country and the people in it, the stress and worry people are going through, if i could sell tomorrow i would to pay back the banks, but the bank would make me pay the balance back with a 5.4% interest rate impossible so when does this nightmare end.

not wanting to be harsh but in fairness its your own doing if you didnt make provision for interest rates of a mere 5.4% thats still way below the normal mortgage rate average.

i did outline above what you shoudl do so im not going on a crusade to make you feel bad but your in the positon your in 100% from your own doing so you also need to get real and stop blaming the banks for your problems.

antoinolachtnai

The financial services ombudsman (FSO) is not a one-way street. Involving them can be treacherous and can actually weaken your case. You can lose recourse to the Courts as a result which could make a difference later.

I would go to IMHO or NB for some advice before going the FSO route.

TrishSimon

antoinolachtnai wrote: »

The financial services ombudsman (FSO) is not a one-way street. Involving them can be treacherous and can actually weaken your case. You can lose recourse to the Courts as a result which could make a difference later.

I would go to IMHO or NB for some advice before going the FSO route.

The FSO can advise you also on the best route to take they dont just accept your case straight away they ask you for all the information and then gave me the different options or services I could go to for advice and help and before any steps are taken you are sent information and given time to think about things, you might be better off going to the IMHO or NB first and the FSO is not as bad as its made out to be you just have to be smart about the decisions you make what option is best for you.:)

antoinolachtnai

The FSO cannot give you advice in relation to your complaint except in the most informal level.

From website:

"In relation to giving advice, the Ombudsman Scheme offers an investigative service only and it does not provide an advisory service. "

The FSO is not the consumer's friend and does not claim to be.

FSO may be a good and relevant path for you to go down but you need to get proper advice before doing so. It is very attractive if you are in a very weak position because it is free, welcoming and well-resourced but if things go against you, you will end up considerably worse off than where you were when you started.

The main problem in principle with FSO is that if you go down that route you lose the right to ever have a Court hearing later on the issue. This may weaken your position, for example if there are repossession proceedings at a later point.

There is a very limited and expensive appeals procedure if you are unhappy with an FSO finding.

If there is a conflict of evidence between you and your bank then you should be very aware of the FSO procedures in relation to this situation

It is not necessarily a bad thing but if you are facing the prospect of possibly losing your home you should get other advice first.

homerno

sharonbyrne wrote: »

hi has anyone had experience in dealing with KBC with their mortgages? I've engaged with them so many times now over 2 years since i got made redundant and they are really difficult to deal with. I have made so many calls, produced financial statements, arranged meetings with managers and still i'm getting no were and no sense is coming out of them.

I have 2 mortgages in my own name - 500k in total on very high interest rates 4.2% home and 5.2% investment. They have been no help, i've been struggling stressing and worrying for so long now that i really wanted to know was there anyone else out there going through the same situation.

I've proposed a split mortgage and was told that because i dont have a pension behind me i cant be considered because they are not guaranteed that i can pay for the other half of the mortgage. There is no sense in what they are saying.

The comments that have been put to me are outrages, i have a 2 smal children, and if i return to employment i will be worse off, i was told that things will get better when they start college by kbc, then i was told to hang prices will increase etc. They are not dealing with the core problem and just kicking the can down the road and getting people more stressed out that cant deal with it in the end.

hi i deal with a few different banks never a problem but in my experience kbc are extremely bad to deal with , I would never deal with them again ever,

olestoepoke

I am currently waiting to hear from kbc on a proposal made by IMHO on my behalf for a split mortgage. I am in 4,000 euro arrears, the IMHO told me to call kbc and make a payment as much as i can afford so i called them to make a payment of 400 euro and i have to say the three different guys i dealt with were ignorant abrupt and downright judgmental, i won't go into my personal situation but theres no excuse for bad manners

homerno

olestoepoke wrote: »

I am currently waiting to hear from kbc on a proposal made by IMHO on my behalf for a split mortgage. I am in 4,000 euro arrears, the IMHO told me to call kbc and make a payment as much as i can afford so i called them to make a payment of 400 euro and i have to say the three different guys i dealt with were ignorant abrupt and downright judgmental, i won't go into my personal situation but theres no excuse for bad manners

yep serious attitude problems , had to put them in their place on a number of times, i would never deal with them again .

olestoepoke

homerno wrote: »

yep serious attitude problems , had to put them in their place on a number of times, i would never deal with them again .

Its like they are trained to be rude,assertive no nonsense attitude

noodle007

Hi,
I would really appreciate some advice.
My home is in 150,00 negative equity and I have arrears of 47,000.
I have been struggling since my ex and I broke up as I am living in the house with our children and paying what I can on the mortgage.
KBC have recently advised me that they will be basing a split mortgage on my income alone as they have deemed my ex partner to be non-engaging and non-contactable. His name is NOT on the deeds, has no equity and no savings
The amount they have offered is 50.00 less than if I was on interest only. What is the best option for me? I am a public sector employee (one of the little low paid ones), live week to week so my lump sum pension will be badly needed when the time comes. (I have two children). Can KBC take this lump sum from me as I will be retired before I pay off the first part of the mortgage? How am I supposed to pay off the ware-housed portion when I am retired? (It will be 150,000). If I die will my mortgage life insurance pay out on the whole mortgage so that my children will be looked after?
If I am still alive after my mortgage life insurance is out and I die having one half of the mortgage paid will this leave my children with the banked 150,00 if they want to remain in the family home? I doubt i will be able to take out another mortgage life insurance policy to cover all of these eventualities without it costing a fortune.
Have I any leverage with the bank to try and get some of the arrears or balance to be written off as they are now only coming after me for payment.
I fully appreciate I got myself into this mess but the mortgage was based on both of our incomes at the time whereas now it is just mine. I do not think I will be able to sustain the monthly amount they want on the split mortgage - anything other than groceries, esb and running the car are being deemed as extras so if the car packs it in or if a door falls off the house (it wouldnt be the first time!) I'm screwed!
The amount they are looking for is on the same level as rents in my area so I'm better off in the long run trying to sort this out once and for all.
Does the fact that my ex was never on the deeds to start with help with the overall picture or as I said am I clutching at straws to try to come to an arrangement that I can sustain and not have to worry about when I am 70!?
Thanks for any info

olestoepoke

noodle007 wrote: »

Hi,
I would really appreciate some advice.
My home is in 150,00 negative equity and I have arrears of 47,000.
I have been struggling since my ex and I broke up as I am living in the house with our children and paying what I can on the mortgage.
KBC have recently advised me that they will be basing a split mortgage on my income alone as they have deemed my ex partner to be non-engaging and non-contactable. His name is NOT on the deeds, has no equity and no savings
The amount they have offered is 50.00 less than if I was on interest only. What is the best option for me? I am a public sector employee (one of the little low paid ones), live week to week so my lump sum pension will be badly needed when the time comes. (I have two children). Can KBC take this lump sum from me as I will be retired before I pay off the first part of the mortgage? How am I supposed to pay off the ware-housed portion when I am retired? (It will be 150,000). If I die will my mortgage life insurance pay out on the whole mortgage so that my children will be looked after?
If I am still alive after my mortgage life insurance is out and I die having one half of the mortgage paid will this leave my children with the banked 150,00 if they want to remain in the family home? I doubt i will be able to take out another mortgage life insurance policy to cover all of these eventualities without it costing a fortune.
Have I any leverage with the bank to try and get some of the arrears or balance to be written off as they are now only coming after me for payment.
I fully appreciate I got myself into this mess but the mortgage was based on both of our incomes at the time whereas now it is just mine. I do not think I will be able to sustain the monthly amount they want on the split mortgage - anything other than groceries, esb and running the car are being deemed as extras so if the car packs it in or if a door falls off the house (it wouldnt be the first time!) I'm screwed!
The amount they are looking for is on the same level as rents in my area so I'm better off in the long run trying to sort this out once and for all.
Does the fact that my ex was never on the deeds to start with help with the overall picture or as I said am I clutching at straws to try to come to an arrangement that I can sustain and not have to worry about when I am 70!?
Thanks for any info

Hi. I was in a similar situation about 3 years ago. I opted for the split mortgage option. I called the life insurance and they told me it didnt affect my policy. If i were u id call your insurance and ask the same question. Different insurers might have different rules. Regarding my split mortgage, in the long run i will pay alot less interest. The wharehoused amount still has to be paid when im 65. I went back to education. Im hoping in the next 3 or 4 years to start paying part or hopefully all of the warehouswed amount again. Call the irish mortgage holders association. They were great help. The options for me are finish education and start paying my mortgage in full again. Or hangingbon till im 65. Sell the house pay the devt and hopefully have enough left over to downsize. Apt maybe. Or if my kids were in a position to mortgage the balance and keel the house. The important thing for me was breathing space. And its working out well so far.

brendan86

Hi,

I also got a split mortgage with KBC back around 3 yeats ago.

When I was offered my split I was told every 3 yeas I would have to send in a financial statement and if I earn more money they can bring some of my parked money over.

So I assume its the same with you? At any stage they can keep topping up and carrying over money. So if and when things pick up I wouldnt be surprised if they start playing hard ball with us that got the split.

There is no way they will leave the parked money parked. Our houses are no use to them now that were in negative equity when and if there in positive they will be wanting there money back.

Can someone with knowledge tell me there opinion on these split mortgages we got.

olestoepoke

brendan86 wrote: »

Hi,

I also got a split mortgage with KBC back around 3 yeats ago.

When I was offered my split I was told every 3 yeas I would have to send in a financial statement and if I earn more money they can bring some of my parked money over.

So I assume its the same with you? At any stage they can keep topping up and carrying over money. So if and when things pick up I wouldnt be surprised if they start playing hard ball with us that got the split.

There is no way they will leave the parked money parked. Our houses are no use to them now that were in negative equity when and if there in positive they will be wanting there money back.

Can someone with knowledge tell me there opinion on these split mortgages we got.

Yeah same for me. Im up for review soon. I dont mind. If and when i am doing better financially i want to pay off the parked amount. It has given me the motivation to return to education. It motivates me to do well in school. My ambition is to able to start paying my mortgage in full one day. It has been a great help. It has given me breathing space but i dont want to leave my kids with the debt.

Shemale

A friend of mine had a mortgage with KBC and the husband turned out to be cheating and a psycho so she left the house in fear of her safety about 5 years ago, the divorce has gone through the court and the judge has directed KBC to remove her from the mortgage which they won't do.

The ex keeps missing mortgage payments and KBC are ringing my friend four times a day harassing her for payment and she is blue in the face explaining the situation.

She has been through an awful lot with this prick who is living in the house on his parents land and now can't get a mortgage as the ex and KBC have destroyed her credit score.

Best think that could happen is that they repossess the house.

I will never ever deal with KBC.