KBC Tracker Mortgage

drinkpinkhorse

Really need help??

We are on a fixed rate mortgage which is due to end in September with new term beginning October. I phoned my mortgage lender today who is KBC and asked them what will be my new rate in October. He told me that I will be going on a Tracker mortgage in October to which I am stunned an overjoyed. He said that I will be due a letter in the post in next couple of weeks confirming new rates and details.

Here are my questions:-
1. In my Loan agreement it does not mention a tracker mortgage on a prevailing variable rate so where is he getting a tracker mortgage?

2. What is the current KBC tracker rate?

3. Should I start partying now or wait till I receive my letter confirming what customer service rep advised on the telephone?

Cheers

Dublinarea

Wait till you get the letter. What they tell you on the phone means nothing.If you rang back two minutes later and got a different rep you would probably be told something different.

Something similiar happened to me, told i was getting back on a tracker and asked for it to be sent out in a letter and when the letter arrived it said i will be going back on SVR.

petermurp

I'd be amazed if they offered a tracker rate as all banks have withdrawn that product. You should have a look at your original Letter of Offer and see what the terms and condition say.....By the way, have you received the letter from KBC since your original post??

Mr.G Reaper

drinkpinkhorse,
Im in the same boat as yourself, i rang KBC and was told that once im out of my fixed rate i would be placed on a tracker mortgage.
Im too afraid to contact them back in case they have made a mistake, my fixed rate will be out at the begining of october, could you please let me know if your put on a tracker (because youll be out of your fixed rate before me)as it would really help me out to know if this worked for you.
thanks
G.R.

raglan

Hi Drinkpinkhorse and Mr. G. Reaper,

I am with KBC too. Can I ask when you took out mortgage with them were you on fixed rate from start or on tracker and then decided to fix?

We had a tracker mortgage when we first took ours out and after getting letters with fixed rates in 2006, and rates rising decided to fix for 3 years. We have been on standard variable rate since as we were told then we couldn't get tracker back so just accepted it until recently....it was only in the last year that there had been huge publicity about banks trying to get people to come of tracker mortgages in numerous ways.

Also, the Independent had an article last week about how banks should have been more clearer to their customers about long term effects of fixing etc....and that 3 banks still allow customers coming of fixed rate to retain their tracker mortgages and KBC was one. So on this basis I rang up KBC to try and see if we should have been put back onto tracker and they are looking into it....here's hoping!! I qouted from original paperwork a special condition relating to the loan being tracker and it states "over the term of the loan", in my eyes that means the full term apart from the term we fixed it for.
Let us know how you get on, thanks.

drinkpinkhorse

Hi guys!

Im still waiting on my letter and like you I do not want to tempt faith by ringing them about it! My fix rate ends in 9 days so I am waiting to hear from them. I dont know what to do and am patiently waiting.

I read all documentation regarding my mortgage and nothing says tracker mortgage in it. My mortgage began in 2007 and we automatically fixed in 2007 as soon as we took it for 3 years.

Fingers toes, legs and everything I can cross. If we go on a tracker we would be saving 700 a month! Big difference!

DPH

raglan

Hi drinkpinkhorse,
Did you receive letter from KBC yet?

drinkpinkhorse

My offer is due to start in November and not October! That was my error!

Sorry very slow at replying but recieved letter today confirming rate of 2.25%!!!!!!!

Saving of 670 a month!!!!!!

Im on the beer for a few days now!

raglan

Hi Drinkpinkhorse,

Sooo Jealous! Great news for you.....I've been in contact with KBC but I don't hold my breath!

drinkpinkhorse

raglan wrote: »

Hi Drinkpinkhorse,

Sooo Jealous! Great news for you.....I've been in contact with KBC but I don't hold my breath!

Have they mentioned that your on a tracker! If they have then your good to go!

raglan

We were on a tracker when we got mortgage, but fixed in 2006 when rates were rising, everyone was saying to fix then but we were complete novices and weren't aware that fixing would cause us to lose tracker mortgage. So I've been onto them since and apparently each month they have different terms and conditions to their mortgages and we were unlucky the month we fixed as others who took out mortgages after and fixed have been allowed to roll off onto tracker. But in our original loan offer it states in the special conditions part that for the "term of the loan" it will be 1.1% above ECB rates.....so I'm arguing that the term of the loan is 30 years minus the period we'd fixed it for. I know its a long shot but just thin it so unfair when there wasn't the publicity then as there is now about holding onto tracker mortgages. But good luck to all who are able to get them!!

DriverMad

I also had a tracker mortgage and fixed in April 2007 for 5 years. Still have a bit to go. Would love to get back on a tracker but i thought it was not possible since I fixed.

Moocifer

I too have been in contact with KBC over the end of my fixed term in January and I have also been told that I will go on to the Tracker rate. I'm still stunned but delighted with this news. Never thought in a million years it would happen.

leighlinboy

Hi Guys
Im in the same boat as you all, have about 8 months left on a five year fixed and am wondering if i will get the tracker option at the end of it.
One issue i can see is that i originally requested Tracker and the first month i was given a variable rate, i remedied this with them immediately and went on tracker from second month and continued on for a good few months before the rates shot up. Then i fixed for 5.
Am interested to see if any of you have had any further news since.

Wondering will i sit tight, or contact them and ask to get clarification, they said recently in the press that they would honour these etc after all the other banks said they wouldnt....so will they go back on this in the next 8 months. I only read today that they are in trouble ........

shnethb

Hi

I think im missing out here, I have a mortage with KBC, Due to finish a fixed term with them at the end of march, I rang the other day as I need to know what my mortage will look like after March and they said that they would not give me a tracker they would only offer me a variable or a fixed rate for 2,3,or 5 years,

How do I convience them that they should give me a tracker???

Trampas

shnethb wrote: »

Hi

I think im missing out here, I have a mortage with KBC, Due to finish a fixed term with them at the end of march, I rang the other day as I need to know what my mortage will look like after March and they said that they would not give me a tracker they would only offer me a variable or a fixed rate for 2,3,or 5 years,

How do I convience them that they should give me a tracker???

check your contract. It should say what you will go onto after your fix is up. They aren't going to give you a tracker.

leighlinboy

The reason i asked the question is that i was on a tracker before i went onto my 5 year fixed. I read about 9 months back that a number of financial institutions werent offering people their tracker back and were forcing them onto the variable rate, the variable rate was closer to the tracker rate back then, it certainly isnt now. KBC stated that they would honour this, was in the apers at the time.

Several poster here have said that they were given the opportunity to go back onto the tracker when their fixed mortgage finished even within recent months.

With the unrest there is with ECB and changing climate should i be getting confirmation they will still do this, as if they go down the route of the rest am i risking what their position will be 9 months time when mine is finished. Or should i be flagging it to them at all and hope to get the tracker back,im sure they are well aware of who went onto fixed mortgages from trackers and when they are finished.

If u werent on the tracker before u got ur fixed i doubt they will offer u anything other than the variable rate.

leighlinboy

Im in two minds should i ring them up and clarify they will honour what they said in press or wait til the offer letter comes out..........

raglan

leighlinboy,
We to had tracker with KBC but fixed it in 2006 after being bombarded with letters about fixed rates, and naively did without knowing the full implications that we were losing our tracker by doing so as at the end of fixed rate we came of it onto standard variable rate. I too saw the paper articles about KBC still offering tracker rates for those coming of fixed rates, and after reading our documents I came across a few terms and conditions that could be interpreted differently regarding our loan and rang KBC up to try and get our tracker mortgage back. I also questioned how some other people on fixed rate mortgages were able to go onto tracker after being fixed......basically was told they were fixed from beginning of mortgage and it depended what month you took mortgage out whether you got to go on tracker afterwards or not as they had different terms for each month. My case was apparently put to a senior manager and I was told my rate would remain as it was. Due to feeling I had no positive outcome from dealing with KBC myself and also to feel I had tried my best and was sure my case had been looked at in detail I forward it to the Financial Ombudsman where it is at the minute.

Most of the posters here who have came of fixed rates onto trackers had fixed mortgages from beginning, but it seems you ended up certain terms and conditions depending what month you took out your mortgage with them!

jaysey

Raglan

did you get any result from FSO regarding your KBC fix?. I am in a similar position and would apreciate a steer on how the process went.

raglan

Hi Jaysey,
Am in the final stages of process, should know final decision by November, I'll keep here updated.

jaysey

Wow that is slow. Did the Bank engage with you at all or does it all come down to the FSo investigation?

raglan

Bank send their side of things to Ombudsman, but of course they not agreeing with my side of things. Final decision is Ombudsmans. Long waiting time is due to the number of complaints Ombudsman is getting. There is a thread on losing tracker mortgages when you fixed mortgage on www.askaboutmoney.ie, under one of the mortgage headings if you do a search. Others have won cases with Ombudsman, so gives some hope. Others haven't though.....

jaysey

Hi Raglan

I just noticed your general post of 10/10 saying you got bad news from FSo re your KBC fix.

I thought you would win, can you tell me what they decided against you? Thanks.

raglan

Hi,

The Ombudsman's finding was that our argument was not a convincing one and that we had altered the original agreed rate, that we couldn't expect by fixing it to it to back on tracker after fixed period ended.

I argued the bank didn't make it absolutely clear that we would lose tracker rate, and I quoted items from 2008 that was supposed to make banks make it absolutely clear to customers that they would lose trackers if fixing rate. I thought these new guidelines would help my case even though we fixed in 2006 but didn't seem to have any effect. Very disappointed and annoyed as we weren't very knowledgeable about mortgage jargon when we fixed but the fixed rate form we signed was severely lacking major warning signs and could have been made more customer informative by listing the implications of fixing and the implications of finishing the fixed rate and the effect on your mortgage rate.

maxer68

Hi Raglan - yopu'll know me from somewhere else!!:D -

My KBC issue is in final stages and hope to have an outcome next month.

According to family member, I have a good case because a special advisory states that the mortgage variable rate will not exceed 0.95% for the term of the mortgage.

By taking a temporary 3 year fixed, I am only agreeing for that 3 year period that the rate will be at the fixed rate and that thereafter it reverts back to variable rate which clearly states will not exceed 0.95%.

If Ombudsman finds against me, i am looking at taking other leagl action - this comes relatively cheap for me due to family connections.

If you wish to meet up, we can compare original docs and see if we can help each other - pm me if you are interested.

DriverMad

Just a concidence. I am just after getting off the phone with IIB . I had an advisory note on my offer later stating 1.25% over ECB REFI Rate. But because I signed a fixed rate agreement for 5 years it states that it is going back to the company variable rate.

So I won't get the tracker

maxer68

DriverMad wrote: »

Just a concidence. I am just after getting off the phone with IIB . I had an advisory note on my offer later stating 1.25% over ECB REFI Rate. But because I signed a fixed rate agreement for 5 years it states that it is going back to the company variable rate.

So I won't get the tracker

But that's the problem. Your main mortgage document has a note to say that the variable rate will never be more than 1.25% above the refi rate.

Unless the fixed rate instruction specifically advises that it replaces any previous agreed rate, then you and many others have a case.

The original document is the main document you and the ban replyon to ensure payment. The fixed rate intstruction is for a short term period of 3 or 5 years and shold only apply for that period.

IIB tried to sneakily add in that it reverts to a standard variable rate, but does not state WHAT standard variable rate. According to my and probably your mortgage document, your mortgage is a standard variable rate mortgage where the standard rate of your mortgage is no more than 1.25% above the refi rate.


If however, the fixed rate instruction has the phrase "The Bank's Standard Variable Rate" with standrad variable rate all being preceeded by block capitals showing that it is a specific product, then your case is weakened.

I will wait until the ombudsman report and if not successful, I will more than likely be taking my own high court action and hopefully be joined by a few others to spread the cost.

raglan

Hi Maxer68,

Yes, I recognise you. I'll look at my documents again over weekend and get back to you with definite terms but I had special conditions attached to our mortgage that stated " will not go above ECB REFI rate.....for term of loan".

On Mortgage Fixed Rate form, it stated that at end of fixed rate mortgage would revert to standard variable rate.....this was not in anyway outlined or with capitals and text was small on all of the sheet.
I argued with Ombudsman that fact that "svr" wasn't highlighted by capitals or any warnings made that we would lose our tracker or about the future cost implications on our loan of fixing & losing tracker as according to newspaper reports in 2008 banks had to make absolutely clear to customers what outcome would be if they fixed rates. He didn't seem to side with anything. Most annoying thing I find is when I originally rang KBC to complain I was told that they offered different products different months to customers, some customers revert to tracker after fixing, some revert to variable. I didn't go looking to fix mortgage, they sent out letters to us each time there was a rate increase and offered "terrific" fixed rate terms, and us being green and naive and ignorant about mortgages fell for it. Know a helluva lot more now I'll update more at weekend.

maxer68

Hi raglan

I'm meeting with family member this weekend specifically about this and with all paperwork and if she can't give a definite senior counsel opinion, she'll pass it on to someone who has experience in this and get it for me (at no cost!! ok, possibly a large box of chocs )

Her initial reaction from phone conversations and general chit chat at family get togethers is in my favour. This weekend's chat however is professional and with all info being brught up for her to review and I assure you, if she thinks I'm wrong, she'll tell me.

fingers crossed.

DriverMad

This is getting interesting.

On my Fixed Rate Instructions it states:

"Fixed rate repayments from the 1st May 2007 for the term as indicated above thereafter reverting to the company's standard variable rate."

There is no bold, nothing that I will loose tracker...

I rang and told me I will go on a variable rate not a tracker....

What should I do now. Do I have any case????