Ulster Bank Increased Mortgage Payment by €300 Per Month Without Warning

Amortis

In January, our monthly mortgage repayment suddenly shot up by about €300.

Needless to say, I contacted them sharpish and asked what was going on.

Got the Scottish call centre and a lot of earnest bafflement. In fairness, the lady I dealt with was very nice and empathetic. But couldn’t give me any answers.

TRS adjustment? Not to that amount. Recalculation? Not without warning. She was scratching her head as much as me.

Told me I could recall the Direct Debit on my end. I was reluctant to do this though for fear of it showing up as me missing a payment on a credit file somewhere.

Anyway, we could cover it until they got it sorted. So decided to leave it until they figured it out, assuming days rather than months.

Three weeks later the same girl called me to say that she still had no answers and would have to refer it to their ‘care team’.

It was unlikely to be resolved before the next payment was due. Obviously not ideal. Whatever about covering a single €300, I didn’t fancy making it a regular occurrence.

We’ve been voluntarily paying down lump sums and increasing our monthly repayments. We want to move in the next few years.

Most recently, we asked to increase our payments by about €200 a few months back and that has come out for as expected since.

Anyway, the Scottish girl suggested we stop this voluntary step-up so that the increase would only hit us for around €100 each month.

Fine, it’s not an issue cash flow wise. It just means saving less each month towards our next house.

It still doesn’t explain the sudden increase and I’m still effectively paying down €300 less principal each month.

Anyway, got a letter this week saying they had received our request to stop the voluntary step-up. Probably a template but completely ignored the fact that we hadn’t requested this. It was their suggestion in light of their decision to inexplicably increase our payments.

So I called again and after 30 minutes was put through to an Irish lad on the “complaints” team not “care” team.

Possibly just a different name for the same team but I hadn’t officially lodged a complaint. All I had asked for was an explanation. Their person in Scotland referred it to the “care team” because she couldn’t give me one.

Not important but I didn’t necessarily want to be marked as a problem customer who lodges complaints at that point. Thinking about applying for the next mortgage.

Anyway, lad on the complaints team still couldn’t give me any answers. No idea.

Asked if he could suspend payments until they could give me some answers. No go. Asked him to call me back later that day with an update. No way. It wouldn’t be that quick. Asked if I would have to keep chasing them for answers like I had to date. This was referred to the care team by the Scottish lass three weeks ago and I hadn’t heard a peep.

Said he had sent a letter to me confirming that he would be handling my complaint.

I hadn’t received it but sure enough, it was there when I got home. No info just a boilerplate blurb about investigating my complaint in the “coming weeks”.

The time frames are ridiculous. They don’t appear to have any incentive to resolve this quickly because muggins here is the one that’s out of pocket to the tune of €300 per month while they get their shot together.

Sorry for the essay. Just wondering if anyone in the business or with a similar experience has any advice about how to get this resolved quicker without impacting my credit rating in any way?

L1011

Moved to A&P due to expertise and the finance forums being dead

Amortis

L1011 wrote: »

Moved to A&P due to expertise and the finance forums being dead

Thanks. Appreciate it.

goldenhoarde

After the next dd ask them for a statement as that should break down the payment in to principal overpayment and interest.

It might help you understand. If not make a complaint and see it that makes them sort it.

I'd be complaining no matter what

Hack12

It could be a number of things.
- TRS being removed. You can check this with Revenue. FTB TRS was circa E300 so this may now be over as to be fazed out. (Tax is personal issue so bank would not know as such as some banks deduct TRS of mortgage and others credit it to your bank account and deduct mtg in full)
- Rate change. Where you on a low fixed rate and now gone onto a higher variable rate?
- Term reduction?
- Stage payment drawndown?

Order a mortgage statement and it should stand out like a sore thumb to any financial broker or it could just be a glitch in the system. Make sure stat is up last month.

KellyXX

Can you just move your mortgage? If I aren't on a tracker.
If you are in a position to do this then start talking to others for a better rate.

I know someone who was with Ulster BV and and on a tracker. They got calls about paying off large amounts for a bonus. When they didn't do that Ulster Bank started messing with their payments. The person reckoned Ulster Bank were trying to make them leave by messing with them. A short of mortgage constructive dismissal. I'll try to find out what happens in the end and let you know.

The_Conductor

Its cases like this- which by rights should be referred to the ombudsman.
You have done your utmost to get to the bottom of what is happening- and Ulster Bank are not engaging (its now 7 weeks into the New Year, they have inexplicably upped your payments- cannot give you any explanation- and are refusing to reduce them again). You're going to be getting another payment out in the next 10 days. You need this investigated- you don't need them messing you around.

peteb2

The_Conductor wrote:

Its cases like this- which by rights should be referred to the ombudsman. You have done your utmost to get to the bottom of what is happening- and Ulster Bank are not engaging (its now 7 weeks into the New Year, they have inexplicably upped your payments- cannot give you any explanation- and are refusing to reduce them again). You're going to be getting another payment out in the next 10 days. You need this investigated- you don't need them messing you around.

You can't go straight to ombudsman. OP you need to write a formal letter of complaint to them. Tell them you want the matter looked into and require a final response letter.

Amortis

KellyXX wrote: »

Can you just move your mortgage? If I aren't on a tracker.
If you are in a position to do this then start talking to others for a better rate.

I know someone who was with Ulster BV and and on a tracker. They got calls about paying off large amounts for a bonus. When they didn't do that Ulster Bank started messing with their payments. The person reckoned Ulster Bank were trying to make them leave by messing with them. A short of mortgage constructive dismissal. I'll try to find out what happens in the end and let you know.

We remortgaged a few years in and that part of the mortgage is a tracker. So I don’t really want to move and lose it. Given that we haven’t touched that for obvious reasons it’s now about half of the outstanding principal.

Amortis

Hack12 wrote: »

It could be a number of things.
- TRS being removed. You can check this with Revenue. FTB TRS was circa E300 so this may now be over as to be fazed out. (Tax is personal issue so bank would not know as such as some banks deduct TRS of mortgage and others credit it to your bank account and deduct mtg in full)
- Rate change. Where you on a low fixed rate and now gone onto a higher variable rate?
- Term reduction?
- Stage payment drawndown?

Order a mortgage statement and it should stand out like a sore thumb to any financial broker or it could just be a glitch in the system. Make sure stat is up last month.

- Not sure about TRS. Possible but I would struggle to see it adding €300 to a €2k payment each month.
- No rated change either. Still SVR and Tracker. (2 sub-accounts) No communication in advance either which you would expect.
- We have been reducing the term but the last change was 6 months ago when we increased payments.
- I’m not sure what a stage payment drawdown is.

Anyway, thank you for the response. It will be helpful when asking them about possible causes.

antoinolachtnai

There are people suggesting going to the ombudsman. There is an idea going around that the ombudsman is some sort of consumer advocate. The financial ombudsman is not a consumer advocate. It would be wrong to think you do not have anything to lose by going to the ombudsman. It can ultimately weaken your position.

Have you gotten a statement from Ulster Bank showing how the amount has been distributed between capital and interest? This would seem like the most important first step.

Amortis

antoinolachtnai wrote: »

There are people suggesting going to the ombudsman. There is an idea going around that the ombudsman is some sort of consumer advocate. The financial ombudsman is not a consumer advocate. It would be wrong to think you do not have anything to lose by going to the ombudsman. It can ultimately weaken your position.

Have you gotten a statement from Ulster Bank showing how the amount has been distributed between capital and interest? This would seem like the most important first step.

Thanks. Yeah, I think I will just have to wait a couple of weeks to see if they can sort it or adequately explain the situation. Then I’ll request a statement to make sure what they are saying is right.

Thanks.

Chris_5339762

Try Twitter or Facebook, they can often get things moving. Failing that, get one of the newspapers to call them. Media attention (physical papers and/or social networking) can often get an intransigent company to do something.

uberwolf

peteb2 wrote: »

You can't go straight to ombudsman. OP you need to write a formal letter of complaint to them. Tell them you want the matter looked into and require a final response letter.

you are right, but for the OPs clarity that complaints process does seem to have commenced with UBs letter from the Dublin based complaints team. Once that has concluded, or 40 working days have passed, you can bring to ombudsman. Unilateral, unexplained payment increases shouldn't be well received - especially under the spotlight of the tracker review.

I'm engaging with UB on an issue at the moment. Everyone I've spoken to is very nice, apologetic, empathetic. But no solution in sight.

rameire

ring up the telephony team,
get your current balance term, and rate, convert your term into months.
use excel and the following formula.

=-pmt(rate/12,term,balance)

this will give you your calculated payment.

next, your TRS will have reduced as the ceilings and percentage qualifying allowed have all reduced by 25%

next, have you been moved to their newer mortgage system? you would have a new mortgage account number starting 59.

your repayment was recalculated because the TRS amount changed dramatically.

edit.
you say you have reduced your term, it may be that the last time the term was reduced the repayment was not recalculated, this could have caused the sudden jump in addition to the TRS change.

4ensic15

Do you have an account in an Ulster Bank Branch? If so, go in and demand to know what is going on. Stand at the counter where a lot of people can overhear you and tell your story to the person at the desk.

GingerLily

Amortis wrote: »

- Not sure about TRS. Possible but I would struggle to see it adding €300 to a €2k payment each month.

Are you sure it's not TRS

https://www.revenue.ie/en/property/mortgage-interest-relief/how-do-you-calculate-mortgage-interest-relief.aspx

Cyrus

use this to figure out what your payments should be, and then check on the TRS, unless they have changed the interest rate or you have come off a fixed its mosty likely TRS:

https://www.drcalculator.com/mortgage/ie/

padd b1975

4ensic15 wrote: »

Do you have an account in an Ulster Bank Branch? If so, go in and demand to know what is going on. Stand at the counter where a lot of people can overhear you and tell your story to the person at the desk.

OP don't do this.

It's totally classless to rant at who are probably the poorest paid members of staff about something so important.

Cookie_Monster

4ensic15 wrote: »

Do you have an account in an Ulster Bank Branch? If so, go in and demand to know what is going on. Stand at the counter where a lot of people can overhear you and tell your story to the person at the desk.

Is this not the obvious advice?, why would you deal with them on the phone etc, go to your branch and ask to talk with your bank manager / mortgage advisor and get it sorted there and then. 2 weeks would be utter ridiculous, never mind 7+ now

Cyrus

Cookie_Monster wrote: »

Is this not the obvious advice?, why would you deal with them on the phone etc, go to your branch and ask to talk with your bank manager / mortgage advisor and get it sorted there and then. 2 weeks would be utter ridiculous, never mind 7+ now

because branches arent like they were 20 years ago and its unlikely anyone in the branch will be able to help?

cruizer101

Of course they can help even if they are not directly responsible, a branch manager can definitely push an issue with other departments.

Its ridiculous that they can't tell you what is happening after this long

JoeyJJ

Ring revenue, our TRS is down to about 1/3 of what it was last year.