Business Irish

Sunday 24 September 2017

Buy-to-let investors to be given refunds over NIB rate change

Continued from Page1

every €100,000 borrowed over a full year, according to investors.

Mr Burgess said the bank had lost five cases taken by investors to the Financial Services Ombudsman and been forced to restore these people to the lower home-loan rate and compensate them. However, he said the bank did win two such cases.

Mr Barrett took one of the cases. He received compensation of €800 and was restored to the home-loan rate.

The bank raised its variable rate for residential customers by almost 1pc at the end of last year, which means that it is now the same as the investor rate.

But Mr Burgess said anyone with a National Irish Bank investor rate should insist on being restored to the home-loan rate, as the investor rate may move up in future, while the residential rate does not.

A spokesperson for NIB denied that it had changed the terms of any of their customers' loan agreements.

"I can confirm that we have had a very small number of complaints (just 1pc), some of which have been referred to the ombudsman and he has ruled in favour of the customer in some cases and in favour of the bank in others.

"This reflects the case-by-case nature of these queries," she said.

"Each one is investigated in full on its own merits by both the bank and the Financial Services Ombudsman."

She added that the investor rate was 4.15pc but those who have an Easy Plus or a Prestige current account package can get a discount on their mortgage rate.

Mr Burgess said that a saving of 0.45pc would be almost €1,500 a year on a €300,000 mortgage and he pointed out that some mortgages are a lot bigger than this.

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