EBS - buy to let

appleb

I have a buy to let property with EBS and got a letter from them today to say there has been an error with the interest rates and they are reducing it from4.8% to 1.5%! Of course I am delighted about this but unsure about what the likely outcome will be. They said that it will take a few months to sort it out. Has anyone any idea what the likely outcome might be? I have a mortgage of about 150k. Mods, if this is in the wrong place, please move it to a more relevant thread.

SarahMollie

appleb wrote: »

I have a buy to let property with EBS and got a letter from them today to say there has been an error with the interest rates and they are reducing it from4.8% to 1.5%! Of course I am delighted about this but unsure about what the likely outcome will be. They said that it will take a few months to sort it out. Has anyone any idea what the likely outcome might be? I have a mortgage of about 150k. Mods, if this is in the wrong place, please move it to a more relevant thread.

Did you have a pre-crash tracker that they took off you at some point? 1.5% is seriously good.

appleb

No, I never had a tracker. It was interest only for the first 5 years and for the past 6 years, I have been paying over €1250 per month , which has now dropped to just over €1000. This is quite a substantial drop. Just wondering if I am going to get a big refund. Not wanting to get too excited!

L1011

Have you been using the interest as an expense against tax on the income? Expect to have to pay a substantial amount of the refund to Revenue

appleb

Yeah, I expect a lot will go to revenue. However, anything is a bonus!

billymc1

any update on the ebs mortgage redress ?

appleb

I have heard nothing since. Anybody else heard anything?

power101

If they were charging you the wrong interest rate then you would be due money back.

Fender543

Hi,

Got this letter also two months ago, nothing since.
I have not contacted a solicitor yet but I think its the best option.

Great to have the boot on the other foot this time.

Has anyone else contacted a solicitor yet ?

appleb

Never crossed my mind to contact a solicitor. I was just planning to wait and see how it all plays out and take it from there. Maybe we should join forces - strength in numbers and all that! Anyone else out there??

kennypowers

Got one of those letters myself.Interest rate has now been adjusted to 1.25 per cent happy days.Took the mortgage out in 2005 at variable rate and cant understand where this tracker rate /adjustment/compensation is coming from.Moved into the property about 4 years ago and notified the bank maybe its something to do with this .
willing to sit tight and find out in November as stated in the letter.

April 73

Can't believe that EBS would have sent out this letter without there being something big behind it. There must have been something in the original contract about tracker rates. If I'd received this letter (wish I had!) Id be going through the contracts with a fine toothcomb.

Kings Inns or bust

There was a case recently enough, I know one of the Barristers involved. I've not caught up with him of late, given I've not seen him recently I'm assuming it went rather well! :pac:

kennypowers

Just a quick update .got a letter from the ebs today ,saying that they were still investigating the matter and will get back in touch in the new year.
very disappointed .

appleb

I got a letter yesterday to say I would hear in December or January. Anyone any idea how much we are likely to get back? I know it will depend on the amount of mortgage etc. But some rough idea per €1000 borrowed??

tippbiffo

My wife had a right go at them yesterday. We originally took out this buy to let mortgage 10 years ago as a poor punt for a long term investment. We understand that it was a risk that went wrong on us but the EBS have literary put our life on hold trying to pay back the mortgage under the wrong interest rate. We thought it would be sorted this month but it's now dragging onto the new year. With the amount that we will get back I wouldn't hold my breath.

Affy

We got a letter earlier this week too which added nothing to the August letter....except to say we are now to wait until Dec/Jan. If the shoe were on the other foot, we would not be able to stall the EBS the way they are stalling with us - and they have NO idea of the impact this has had over the years.
Appleb thank you for the original post - it was so nice to see it on a Google search, even if we are all in the same boat.
Btw has anybody sought legal advice? We spoke to a solicitor briefly in September and he said wait until the November letter arrives. Don't know what he'll say this time!! I was thinking of contacting the likes of New Beginning too though they may just be interested in Owner Occupier cases. Whatever I hear back, I'll post here to share.....

newacc2015

Affy wrote: »

We got a letter earlier this week too which added nothing to the August letter....except to say we are now to wait until Dec/Jan. If the shoe were on the other foot, we would not be able to stall the EBS the way they are stalling with us - and they have NO idea of the impact this has had over the years.
Appleb thank you for the original post - it was so nice to see it on a Google search, even if we are all in the same boat.
Btw has anybody sought legal advice? We spoke to a solicitor briefly in September and he said wait until the November letter arrives. Don't know what he'll say this time!! I was thinking of contacting the likes of New Beginning too though they may just be interested in Owner Occupier cases. Whatever I hear back, I'll post here to share.....

Ask bank to see your bank files via the FOI. I say it will be interesting to see your bank files to see what their internal files ie it will show what they have been saying/doing on your files

You might be entitled to redress for overcharging. Most of the other banks have been giving customers compensation for overcharging. I would very careful to incase you sign away the right to sue in return for your overcharging

Graham

newacc2015 wrote: »

Ask bank to see your bank files via the FOI.

It's a data protection request.

kennypowers

just had a look at my mortgage account and see 8500 sitting there with b d ref adj as the reference.this is on a 150000 mortgage.am delighted but confused as I only got the letter about the delay last week.

Boy_le

I had a buy to let property which I purchased in 06..... I since had to sell the property in 2013 due to not being able to afford the mortgage.... now today I get a phone call from the ebs regarding the mortgage they informed me that I was on a tracker mortgage but was getting charged the wrong rate..... I sold the property on their advice basically they told me to sell it and I was told by them to kick out my tenants and sell up, which I did.. I ended up selling at a massive loss that I was liable for... Depending on the rate I should have been on I figure I might have been able to sustain the mortgage repayments...Did anyone else encounter this problem or can anyone advise me on this thanks

newacc2015

Boy_le wrote: »

I had a buy to let property which I purchased in 06..... I since had to sell the property in 2013 due to not being able to afford the mortgage.... now today I get a phone call from the ebs regarding the mortgage they informed me that I was on a tracker mortgage but was getting charged the wrong rate..... I sold the property on their advice basically they told me to sell it and I was told by them to kick out my tenants and sell up, which I did.. I ended up selling at a massive loss that I was liable for... Depending on the rate I should have been on I figure I might have been able to sustain the mortgage repayments...Did anyone else encounter this problem or can anyone advise me on this thanks

I would stop speaking to them immediately. I would apply for a data protection request which will get you all your files and then find a good solicitor. This is not legal advice but looking at the fact you suffered a loss you might be entitled to compensation. By compo I mean decent compensation for the loss you suffered and not the token amount that other banks are offering

Boy_le

They said that they were going to write out to me this month should I wait to see what the letter says before I get legal advice

kennypowers

Boy_le wrote: »

They said that they were going to write out to me this month should I wait to see what the letter says before I get legal advice

I would seek legal advice immediately .I think they will be liable for all legal and financial advice you receive up to a certain amount .i went in today and was told as much.
To add to the circus ebs are creating.the money was taken out of my account again but at least I know the ball park figure I will be getting back.

newacc2015

Boy_le wrote: »

They said that they were going to write out to me this month should I wait to see what the letter says before I get legal advice

Ask for the data protection request now. I will hazard a guess their letter and the compo will ask you to waive your right to sue them for redress.

Affy

Any suggestions on who to approach for legal advice that would have a lot of experience in this area? I just think our solicitor is more experienced in property conveyancing than this sort of thing.

Also, I'm a little sceptical of the Data Protection process...do they not just do a bit of "spring cleaning" and only send you what they want you to see? Once we asked them to resend us a letter that they had sent us but that we had lost and they denied it had ever existed! By chance we found the letter a couple of years later but it has made me very wary.

Would it be better to get legal advice before going FOI / data protection route? Really not sure where to begin but feel we need to do something.

athtrasna

Legal advice or on thread recommendations of individuals or companies may not be given on here alas.

Mod

Affy

athtrasna wrote: »

Legal advice or on thread recommendations of individuals or companies may not be given on here alas.

Mod

That's a pity, but fair enough!

appleb

Hi guys. I got a document today outlining the redress etc and a cheque included. It actually was substantially more than I expected. I really am not sure what I should do now. do I just grab it and run or is there value in obtaining legal advice? :)If there are others out there in a similar situation, would it be worth joining forces and seeing what we should do? Anyone interested, please PM me

Boy_le

Did they explain in the letter any terms or conditions of the redress......did they show you the dates from when they started to over charge you? ???

Michael D Not Higgins

Considering these are buy to let and you've been charged higher interest (which you've deducted 75% on your tax return if renting them out) and have now been refunded, I'd be speaking to someone on any tax implications for previous returns.

Affy

Hi - got letter and cheque in the post too. Not 100% sure about their mode of calculating the redress element - they are basing it on the Time Value of Money, compensating us for not having access to the overpaid money during that time. In reality, that money would have gone against the mortgage and would have compounded our loan down by more than the actual redress amount. I think so anyway! Am going to get some independent financial advice. Appleb good idea ...I'll PM you now

d1980

Hi all

Got letter yesterday too with cheque. Significant amount over 8 years, had being paying 5.08 percent. Mortgage was cleared earlier this year. Will call revenue, accountant in the morning. I assume half will need to be given to revenue.

Talk to your accountant or a tax advisor first before volunteering any information to revenue.

appleb

It actually stated in my letter that they have cleared with revenue that there will be no tax implications

kennypowers

Got my letter and cheque as well.Am meeting my accountant tomorrow although letter states that there will be no tax implications.Had a top up mortgage as well which is since payed off but there is no reference to it in my letter .

d1980

I'll read my letter again but it does say in the FAQ that the revenue confirmed this also. Surprised this was put in there as you would expect a question like that to say contact your tax advisor etc

d1980

d1980 wrote: »

I'll read my letter again but it does say in the FAQ that the revenue confirmed this also. Surprised this was put in there as you would expect a question like that to say contact your tax advisor etc

My letter also says that too

Affy

Our letter also confirms no tax implications.

KennyPowers we also have a top up mortgage so I'd be interested to hear what feedback you get on that. We are meeting a financial advisor and solicitor, hopefully both this week.

billymc1

also got letter and cheque from ebs .did anyone get legal advice as not sure what to do next do I just pay it off the mortgage and leave it at that ?

d1980

Here's my story.  Got a letter before Christmas. 
Called Accountant who pretty much read the letter back to me and said things like 'may' have to pay something to revenue but was non committal.  His advice was to call EBS to confirm what was meant by the [email=Q@A]Q@A[/email] 'revenue have confirmed to us that no tax liability will arise for you in respect of these payments'
I called them and they did not provide too much information on this so I called the Revenue, did not give my details and the lady I got said they were not aware of any redress scandal at banks. 
For now, I've lodged the cheque and will leave it there until I hear any more.
The reason I got the compensation was not because I was on a tracker and taken off but because it was not explained to me that  the interest rate at the time, despite being 1.5% of the ECB would not always be tied to the ECB rate.
I knew that and did not have any issues with the repayments so have not spoken to a lawyer and consider it an unexpected bonus.

tippbiffo

No letter yet bar the letter last November stating about the error in the interest rate charged and to be expecting an outcome December or January. It's just another turn in the road with my life trip with the EBS. I await with bated breath.