No variable rate mortgage holder signed up for a mortgage in which they could be charged 30% or 40% while European Central Bank (ECB) interest rates were at 4%.
But, that is exactly what these mortgage holders have got.
Variable rate mortgage holders had a right to expect that the interest rate they would be charged would vary with the inter-bank or wholesale interest rates in the market, as set by the ECB.
Instead, what they have is an interest rate which varies according to the profit the lender (in this case the Vulture Funds) wants to make, which in turn is determined by how much the Vulture Funds believe is the maximum they can squeeze out of these mortgage holders without
a) Forcing too many into circumstances in which they have to default; and
b) Risking clampdown and censure from the Regulator who is supposed to be protecting the interests of customers.
In theory, there is nothing to prevent these banks and Vulture Funds charging 30% or 40% on Variable Rate mortgages.
Just think about that for a second – tens of thousands of Irish homeowners, who collectively must have at least average intelligence, are supposed to have willingly signed up to a scheme in which they could be fleeced on the biggest loan they will ever take out in their lives.
They didn’t sign up for this – THEY WERE SOLD A LIE.
Tens of thousands of them.
Decent, honourable, tax-paying Irish citizens – the length and breadth of the country.
First being fleeced by the rogues who collapsed the global financial system. And now by the Vultures who those cowardly banks sold out to.
Two of the biggest variable rate mortgage price gougers – KBC Bank and Ulster Bank – fled the country, almost certainly knowing that variable rate interest rates are a ticking time-bomb.
NOTE TO BANKS AND VULTURE FUNDS – The interest rate on a variable rate mortgage is supposed to vary according to the interest rates in the market, NOT vary according to the profit margin you think you can get away with.
A very simple exercise of comparing the difference between the official ECB interest rate and the rate you charge on variable rate mortgages since their inception reveals the depth of your price gouging.
This will clearly show how much your % profit margin has increased over the life of the mortgage.
In years to come, when the final numbers for this are calculated, this will turn out to be the largest case of mis-selling in the history of financial services in Ireland.
And those who, caused, perpetuated and facilitated this, from individuals to banks to Vulture Funds to Regulators and Politicians, will be easy to identify.
You know who you are. It’s long gone beyond the time to do the honourable thing.
