Sir, – I have had a mortgage with Ulster Bank for some years now and never missed a payment. The repayments were approximately €500 per month, which varied over the years with normal changes in interest rates.
I was obliged a few years ago to go on interest-only and the repayments were only €150. When this period came to an end Ulster Bank increased my payments to €965.
I contacted the bank by phone saying this was unreasonable and I could not afford this amount. The bank was unrelenting.
I then asked them to extend the period of the mortgage or to accept a smaller agreed amount. On both counts they refused point blank and threatened if I did not pay the full amount they would bring me to court for repossession. I am an OAP and cannot afford this huge increase.
I wish to advise any of your readers if they are considering making interest-only payments on their mortgage to think twice about it and contact their bank to see what the repayments would jump to at the end of the interest- only period. – Yours, etc,