Post office/bank of Ireland mortgage concerns

emmahl

We are looking at getting our first mortgage and we've been made aware that best rate is probably with the Post Office. However, following the latest news, we are concerned that the Bank of Ireland may not be the most stable institution to use.

Please could someone advise us on what the worst case scenario could be or if we'd be ok to go ahead?

Senior_Paper_Monitor

Worst case - they suspend lending before you get a mortage!

Once you've got it, their credit status is not your problem (you've got their money and the contract will continue to be honoured)

GMS

I would be concerned if I was lending them money but not the other way around.

As Senior Paper says, the worst thing is lending is suspended.

Jenniefour

Not sure what you think the problem might be. But, if the worst happened, absolutely nothing would happen to your mortgage, you would simply keep paying it for the agreed term, even though the mortgage book may have been sold on to another lender. Savers are the ones who need to make sure they have no more in Post Office accounts than the limits guaranteed.

Thrugelmir

Worst case scenario is that sell their mortgage book onto Santander..........

emmahl

Thanks for your quick responses.

If the bank go under and another lender does take over the mortgage are they able to change the rate we pay (if we are in a fixed term mortgage)?

Thrugelmir

Does your mortgage offer disclose the rate or the basis that the rate will be calculated. Once the fixed term expires. If so this rate will be contractually honoured.

If it merely refers to the lenders standard SVR for example. Then the rate could be set to anything.

Though even the BOI could have upped rates anyway when the fixed term expires.

GMS

emmahl wrote: »

Thanks for your quick responses.

If the bank go under and another lender does take over the mortgage are they able to change the rate we pay (if we are in a fixed term mortgage)?

The mortgage would remain on the same terms if it was taken over.

Thrugelmir

GMS wrote: »

The mortgage would remain on the same terms if it was taken over.

There is no guarantee as to the rate at the end of the fixed term unless specifically quoted. Standard SVR could be higher than it is currently for example.

Trollfever

Thrugelmir wrote: »

Worst case scenario is that sell their mortgage book onto Santander..........

Or Northern Wreck.

GMS

Thrugelmir wrote: »

There is no guarantee as to the rate at the end of the fixed term unless specifically quoted. Standard SVR could be higher than it is currently for example.

It would still be the same terms though as SVR is subject to change.