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Thread: PTSB to Hit Tracker Mortgage Borrowers

  1. #1
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    Default PTSB to Hit Tracker Mortgage Borrowers

    I think this could well be something that will put feet on the streets. No-one would be able to afford these kind of repayments:-

    Permanent TSB is plotting the first controversial assault by banks on loss-making tracker mortgages by resetting the monthly payments it charges investment property borrowers, the Sunday Tribune has learned.




    From this autumn, thousands of small landlords and holiday home-owners face paying steeply higher monthly payments and higher interest rates.

    Other banks will likely follow suit if the leading mortgage lender wins the Financial Regulator's approval for the move.

    The bank briefed its most senior managers last Tuesday on plans to renegotiate with residential investment property customers who borrowed money at so-called tracker rates that are linked to official European Central Bank rates.

    Dowling calculates that an investor who borrowed €500,000 and is currently paying €730 in interest per month will now face a new monthly bill of €2,470 in interest and capital repayments.


    http://www.tribune.ie/business/news/...age-borrowers/


    The bank has apparently sought legal advice as to whether or not it can renegotiate with tracker mortgage customers by triggering review clauses in the loan contracts.

  2. #2
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    Default Re: PTSB to Hit Tracker Mortgage Borrowers

    Quote Originally Posted by ang View Post
    I think this could well be something that will put feet on the streets. No-one would be able to afford these kind of repayments:-



    http://www.tribune.ie/business/news/...age-borrowers/


    The bank has apparently sought legal advice as to whether or not it can renegotiate with tracker mortgage customers by triggering review clauses in the loan contracts.
    Wow - that is serious! Will watch this space to see if they can get away with it.

  3. #3
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    Default Re: PTSB to Hit Tracker Mortgage Borrowers

    It seems like they can only do it to people in arrears or who have in some way broken the existing mortgage contract.

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    Default Re: PTSB to Hit Tracker Mortgage Borrowers

    The article certainly doesn't mention anything about it only being activated for people in arrears:-

    Customers buying investment or 'buy to let' properties typically borrowed money for 25 years with monthly interest-only payments.

    After triggering terms in the contracts to review the home loan terms after the first three or five years, Permanent TSB now plans to write to the borrowers demanding both interest and capital repayments.

    If customers are unable to pay, they are likely to be offered a higher tracker rate or a "suite" of variable interest rates at much higher levels.
    http://www.tribune.ie/business/news/...age-borrowers/

  5. #5
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    Default Re: PTSB to Hit Tracker Mortgage Borrowers

    Quote Originally Posted by ang View Post
    The article certainly doesn't mention anything about it only being activated for people in arrears
    Yeah, I know. But other newspapers reported recently that cancelling tracker rates could only be done to someone who had in some way breached their mortgage contract.

    The Tribune doesnt clarify this point. I think they might be exaggerating for the sake of sensationalism.

  6. #6
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    Default Re: PTSB to Hit Tracker Mortgage Borrowers

    If you even muck about with your house insurance you need to be careful you don't disrupt any clause in your tracker. I have one and I am very careful not to do anything wrong with it. They are losing a fortune on them and what out of them in any way possible. There was talk of bribes to get people off them.
    Mr Lenihan said the guarantee was “the cheapest bailout” compared with bank rescues in other countries, including the UK and the US, where “billions and billions of taxpayers’ money are being poured into financial institutions” - October 24 2008

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    Default Re: PTSB to Hit Tracker Mortgage Borrowers

    You can be sure that AIB and BOI are looking very closely at this as well.

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    Default Re: PTSB to Hit Tracker Mortgage Borrowers

    Quote Originally Posted by Xray View Post
    If you even muck about with your house insurance you need to be careful you don't disrupt any clause in your tracker
    In what sense tho? As long as the Bank are noted as the Mortgagee on the replacement Policy and the property continues to be insured for full reinstatement value I'd imagine things would be fine as the Bank's interest shouldn't be "prejudiced"

    I have a Tracker myself - great to see the Banks out of kilter with Trackers - may they long last and the Banks efforts to change it flounder btw

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    Default Re: PTSB to Hit Tracker Mortgage Borrowers

    Glad for all of you with Trackers, but not so much for the other borrowers as the banks will just gouge the difference out of them.

    The banks are out of money.

  10. #10
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    Default Re: PTSB to Hit Tracker Mortgage Borrowers

    From my understanding of the situation this particular instance is aimed at the investor buy to let brigade who would have 3 and 5 year reviews in their mortgage contracts.

    I suppose you can't pay interest only forever ?

    If this goes ahead you will see the bottom of the housing market sooner than anticipated.

    Or will Lenny be tempted to step in to protect the NAMA project ??

  11. #11
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    Default Re: PTSB to Hit Tracker Mortgage Borrowers

    Quote Originally Posted by ang View Post
    From my understanding of the situation this particular instance is aimed at the investor buy to let brigade who would have 3 and 5 year reviews in their mortgage contracts.

    I suppose you can't pay interest only forever ?

    If this goes ahead you will see the bottom of the housing market sooner than anticipated.

    Or will Lenny be tempted to step in to protect the NAMA project ??
    The sooner the better for me.

  12. #12
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    Default Re: PTSB to Hit Tracker Mortgage Borrowers

    Quote Originally Posted by ang View Post
    From my understanding of the situation this particular instance is aimed at the investor buy to let brigade who would have 3 and 5 year reviews in their mortgage contracts.

    I suppose you can't pay interest only forever ?

    If this goes ahead you will see the bottom of the housing market sooner than anticipated.

    Or will Lenny be tempted to step in to protect the NAMA project ??
    The banks are scratching around for cash and the ECB is trying to edge back out of providing liquidity. There's not much room for manoevre. Many of the so called "performing" NAMA loans are paying interest only, with no prospect of the capital being paid off any time in the near or medium future.

    Nobody is prepared to say the system is bust but...

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    Default Re: PTSB to Hit Tracker Mortgage Borrowers

    Quote Originally Posted by Ah Well View Post
    In what sense tho? As long as the Bank are noted as the Mortgagee on the replacement Policy and the property continues to be insured for full reinstatement value I'd imagine things would be fine as the Bank's interest shouldn't be "prejudiced"

    I have a Tracker myself - great to see the Banks out of kilter with Trackers - may they long last and the Banks efforts to change it flounder btw
    I cant find the link now, but I read it in a sunday paper about a month ago. They are going thru the contract with a fine tooth comb, if you even look like you broke the terms they will cancel. If your house has decreased in value and there have any reason (ie new insurance policy) to revalue you may fall outside the terms on which the loan was given, ie the loan to value ratio might be altered. So if you ring you insurance company and ask for a lower insurance premium because you house is cheaper to rebuild now than before you could be giving your bank a reason to ditch you from the terms of the tracker. They will keep up mortgaged but on a variable. We are talking about the lowest form of scum known to man, they have the NAMA money now, the mask is going to be dropped like a lead weight.
    Mr Lenihan said the guarantee was “the cheapest bailout” compared with bank rescues in other countries, including the UK and the US, where “billions and billions of taxpayers’ money are being poured into financial institutions” - October 24 2008

  14. #14
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    Default Re: PTSB to Hit Tracker Mortgage Borrowers

    Something here which was in SBP in april this year:-

    It might also be possible for the bank to revoke the promise to track the ECB rate if the borrower had breached the terms of the contract, for example if the borrower had missed repayments, the source said.
    http://archives.tcm.ie/businesspost/...story48629.asp

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    Default Re: PTSB to Hit Tracker Mortgage Borrowers

    Quote Originally Posted by ang View Post
    Something here which was in SBP in april this year:-



    http://archives.tcm.ie/businesspost/...story48629.asp
    They are talking about this on the Late Debate and saying if someone asks to renegotiate their mortgage terms in any way they in some cases are being taken off their Tracker mortgage.

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