Clip /Swap Mortgages - Bankinter
Oct 27th 2010, 3:39 pm
#1
Forum Regular
Thread Starter
Joined: Jan 2005
Posts: 99
Clip /Swap Mortgages - Bankinter
has anyone got any experience of getting out of Clip/Swap mortgages.
Ours is with Bankinter. The scenario was that shortly after we took out a variable rate mortgage we were pushed into taking out a different mortgage that was supposed to 'protect us' in case rates went above 6.5%. At the time we said we were not interested as we didn't envisage rates going that high, but we were told we could cancel it without a problem.
Except that we can't cancel it.
So we are now locked into a deal for the rest of the mortgage terms at 6.23%. When it first came into effect, in September 2009 we asked about getting out of it and were told we would have to pay a penalty of 12,000 euro to go back to the original contract. There were various other options such as paying part of the penalty and moving onto a fixed rate (quoted as 4.66% in Sept 2009). We didn't have that money at the time.
Fast forward to now and we have the option of paying a lump sum off.
Contacted the bank yesterday. The penalty to get out of the contract has now risen to 18,000 euro (depite the fact that we have a years' less mortgage to pay now and the bank have received an extra 400 euro per month from us as the normal rate is something like 3.5% not 6%.
If we pay a lump sum of half the mortgage off, they will move us onto a fixed rate of 8.9%!!!!!!
We don't understand why the penalty has risen so steeply - if it was 12,000 euro a year ago, why is it 18,000 euro now?
This type of mortgage has been mis-sold fairly widely in spain and a lot of spanish residents are affected. There are a few lawyers on the case as a group action but all the group action information is in spanish and my spanish isnt good enough (although we translate...).
Has anyone else on the forum been affected by this? Has anyone else found a solution.
We think we are just going to be stuck with paying the mortgage for the rest of the term at 6.23% which means Bankinter get 400 euro a month extra over and above the true interest rate.
Ours is with Bankinter. The scenario was that shortly after we took out a variable rate mortgage we were pushed into taking out a different mortgage that was supposed to 'protect us' in case rates went above 6.5%. At the time we said we were not interested as we didn't envisage rates going that high, but we were told we could cancel it without a problem.
Except that we can't cancel it.
So we are now locked into a deal for the rest of the mortgage terms at 6.23%. When it first came into effect, in September 2009 we asked about getting out of it and were told we would have to pay a penalty of 12,000 euro to go back to the original contract. There were various other options such as paying part of the penalty and moving onto a fixed rate (quoted as 4.66% in Sept 2009). We didn't have that money at the time. Fast forward to now and we have the option of paying a lump sum off.
Contacted the bank yesterday. The penalty to get out of the contract has now risen to 18,000 euro (depite the fact that we have a years' less mortgage to pay now and the bank have received an extra 400 euro per month from us as the normal rate is something like 3.5% not 6%.
If we pay a lump sum of half the mortgage off, they will move us onto a fixed rate of 8.9%!!!!!!
We don't understand why the penalty has risen so steeply - if it was 12,000 euro a year ago, why is it 18,000 euro now?
This type of mortgage has been mis-sold fairly widely in spain and a lot of spanish residents are affected. There are a few lawyers on the case as a group action but all the group action information is in spanish and my spanish isnt good enough (although we translate...).
Has anyone else on the forum been affected by this? Has anyone else found a solution.
We think we are just going to be stuck with paying the mortgage for the rest of the term at 6.23% which means Bankinter get 400 euro a month extra over and above the true interest rate.
Nov 22nd 2010, 4:09 pm
#2
BE Forum Addict
Joined: Jun 2006
Posts: 1,101
Re: Clip /Swap Mortgages - Bankinter
There was something about this on the news 2 or 3 weeks back.
I think it went to court and it was held to be unfair that some people were paying significantly above the going rate and the banks were told that they had to amend the rates where applicable.
I was only half listening to the report so I can't remember the details. I think the exact term is "novación de hipoteca".
Perhaps someone else can fill in more details.
I think it went to court and it was held to be unfair that some people were paying significantly above the going rate and the banks were told that they had to amend the rates where applicable.
I was only half listening to the report so I can't remember the details. I think the exact term is "novación de hipoteca".
Perhaps someone else can fill in more details.
Nov 23rd 2010, 6:10 am
#3
BE Forum Addict
Joined: Dec 2009
Location: Aracena area Huelva Spain
Posts: 1,631
Re: Clip /Swap Mortgages - Bankinter
has anyone got any experience of getting out of Clip/Swap mortgages.
Ours is with Bankinter. The scenario was that shortly after we took out a variable rate mortgage we were pushed into taking out a different mortgage that was supposed to 'protect us' in case rates went above 6.5%. At the time we said we were not interested as we didn't envisage rates going that high, but we were told we could cancel it without a problem.
Except that we can't cancel it. So we are now locked into a deal for the rest of the mortgage terms at 6.23%. When it first came into effect, in September 2009 we asked about getting out of it and were told we would have to pay a penalty of 12,000 euro to go back to the original contract. There were various other options such as paying part of the penalty and moving onto a fixed rate (quoted as 4.66% in Sept 2009). We didn't have that money at the time.
Fast forward to now and we have the option of paying a lump sum off.
Contacted the bank yesterday. The penalty to get out of the contract has now risen to 18,000 euro (depite the fact that we have a years' less mortgage to pay now and the bank have received an extra 400 euro per month from us as the normal rate is something like 3.5% not 6%.
If we pay a lump sum of half the mortgage off, they will move us onto a fixed rate of 8.9%!!!!!!
We don't understand why the penalty has risen so steeply - if it was 12,000 euro a year ago, why is it 18,000 euro now?
This type of mortgage has been mis-sold fairly widely in spain and a lot of spanish residents are affected. There are a few lawyers on the case as a group action but all the group action information is in spanish and my spanish isnt good enough (although we translate...).
Has anyone else on the forum been affected by this? Has anyone else found a solution.
We think we are just going to be stuck with paying the mortgage for the rest of the term at 6.23% which means Bankinter get 400 euro a month extra over and above the true interest rate.
Ours is with Bankinter. The scenario was that shortly after we took out a variable rate mortgage we were pushed into taking out a different mortgage that was supposed to 'protect us' in case rates went above 6.5%. At the time we said we were not interested as we didn't envisage rates going that high, but we were told we could cancel it without a problem.
Except that we can't cancel it.
So we are now locked into a deal for the rest of the mortgage terms at 6.23%. When it first came into effect, in September 2009 we asked about getting out of it and were told we would have to pay a penalty of 12,000 euro to go back to the original contract. There were various other options such as paying part of the penalty and moving onto a fixed rate (quoted as 4.66% in Sept 2009). We didn't have that money at the time. Fast forward to now and we have the option of paying a lump sum off.
Contacted the bank yesterday. The penalty to get out of the contract has now risen to 18,000 euro (depite the fact that we have a years' less mortgage to pay now and the bank have received an extra 400 euro per month from us as the normal rate is something like 3.5% not 6%.
If we pay a lump sum of half the mortgage off, they will move us onto a fixed rate of 8.9%!!!!!!
We don't understand why the penalty has risen so steeply - if it was 12,000 euro a year ago, why is it 18,000 euro now?
This type of mortgage has been mis-sold fairly widely in spain and a lot of spanish residents are affected. There are a few lawyers on the case as a group action but all the group action information is in spanish and my spanish isnt good enough (although we translate...).
Has anyone else on the forum been affected by this? Has anyone else found a solution.
We think we are just going to be stuck with paying the mortgage for the rest of the term at 6.23% which means Bankinter get 400 euro a month extra over and above the true interest rate.
Loads of people were conned by Banks who used scare tactics to make people take out new fixed rate mortgages when rates were at an all time low that they could have enjoyed for some time.
There's only one word for it.... Parasitic. And like parasites they prey on the weakest.
Good luck with your fight on this. Don't be scared into submission!
Nov 23rd 2010, 8:41 am
#4
Forum Regular
Thread Starter
Joined: Jan 2005
Posts: 99
Re: Clip /Swap Mortgages - Bankinter
thanks for the replies on this.
In the end we paid the 17,000 euro penalty (it went down by 1,000 euro because the euribor rose a bit) to cancel the deal {gulp} which took us back to our original rate of 3% or so, but without paying any of the mortgage off.
If we had attempted to pay any lump sum off the mortgage, our rate would have shot up to 8.99%!
We felt we had no other option as we were paying 400 euro over the odds each month and this way, now that we are back to our original deal, its manageable. We just were getting nowhere.
But whether the bank will spring something else on us now, who knows.
But I am looking into the group actions that are taking place to see if there is anything more we can do. There is a group in Chiclana that are taking action.
In the end we paid the 17,000 euro penalty (it went down by 1,000 euro because the euribor rose a bit) to cancel the deal {gulp} which took us back to our original rate of 3% or so, but without paying any of the mortgage off.
If we had attempted to pay any lump sum off the mortgage, our rate would have shot up to 8.99%!
We felt we had no other option as we were paying 400 euro over the odds each month and this way, now that we are back to our original deal, its manageable. We just were getting nowhere.
But whether the bank will spring something else on us now, who knows.
But I am looking into the group actions that are taking place to see if there is anything more we can do. There is a group in Chiclana that are taking action.
Nov 23rd 2010, 8:49 am
#5
Lost in BE Cyberspace
Joined: Apr 2009
Posts: 7,749
Re: Clip /Swap Mortgages - Bankinter
I'm just disgusted by this. Having had my bank try to up my mortgage when the fixed rate period ended, and being lucky enough to live a year on a very low mortgage (before selling up) I realised what banks were up to these days. My son was on an interest only mortgage (back in England). When his mortgage deal came to an end just as mortgage rates were hitting the floor, his bank tried their hardest to change him onto a repayment mortgage at something like 7%. I talked him out of taking it...and I'm very glad I did. Since then he's managed to pay all his other expensive debts off and will soon be in a position to start saving for a house move. Calculating what would have happened had he started the new deal he would have been in a much poorer position. Still with the debts. with a larger mortgage and very little equity should he have reached a 'rocky patch'. ( re. rocky patches...On one loan that I have I'm paying 21%!!) Right now my son is enjoying extended holidays as befits his and his wife's hard working life.
Loads of people were conned by Banks who used scare tactics to make people take out new fixed rate mortgages when rates were at an all time low that they could have enjoyed for some time.
There's only one word for it.... Parasitic. And like parasites they prey on the weakest.
Good luck with your fight on this. Don't be scared into submission!
Loads of people were conned by Banks who used scare tactics to make people take out new fixed rate mortgages when rates were at an all time low that they could have enjoyed for some time.
There's only one word for it.... Parasitic. And like parasites they prey on the weakest.
Good luck with your fight on this. Don't be scared into submission!
The problem your son has is that interest only mortgages are a very very bad idea. If he bought in 2007 he will be sitting on serious negative equity and the bank will have the right to force him to sell him house.
If you dont have at least 25% equity in your house now then the mortgage rates are scandalous as you say. And yes I agree that banks are scum of the earth. I've had a very bad experience with them recently for them lying and cheating to try and get me on a more expensive mortgage.
But still, look at Ireland today, that is what property speculation and interest only mortgages has got them into. Lets hope and prey that this doesnt happen in a few months time in Spain, or even in the UK! As there will be no money left to bale the country out. And anyone with any savings will see it inflated into nothing. A serious possibility I tell you!
Nov 23rd 2010, 1:13 pm
#6
BE Forum Addict
Joined: Dec 2009
Location: Aracena area Huelva Spain
Posts: 1,631
Re: Clip /Swap Mortgages - Bankinter
The problem your son has is that interest only mortgages are a very very bad idea. If he bought in 2007 he will be sitting on serious negative equity and the bank will have the right to force him to sell him house.
If you dont have at least 25% equity in your house now then the mortgage rates are scandalous as you say. And yes I agree that banks are scum of the earth. I've had a very bad experience with them recently for them lying and cheating to try and get me on a more expensive mortgage.
But still, look at Ireland today, that is what property speculation and interest only mortgages has got them into. Lets hope and prey that this doesnt happen in a few months time in Spain, or even in the UK! As there will be no money left to bale the country out. And anyone with any savings will see it inflated into nothing. A serious possibility I tell you!
If you dont have at least 25% equity in your house now then the mortgage rates are scandalous as you say. And yes I agree that banks are scum of the earth. I've had a very bad experience with them recently for them lying and cheating to try and get me on a more expensive mortgage.
But still, look at Ireland today, that is what property speculation and interest only mortgages has got them into. Lets hope and prey that this doesnt happen in a few months time in Spain, or even in the UK! As there will be no money left to bale the country out. And anyone with any savings will see it inflated into nothing. A serious possibility I tell you!
Ahh but You see you did get me started;-) Beware. A rant is coming up!
Ask yourself where has all that 'value' gone. Ireland is no different today as it was yesterday or last year etc. neither is portugal, Spain or Greece. The only ones laughing are the lenders Including those who are ramping up the interest to the countries who are 'in diffficulties'. We're blaming ourselves for expecting the 'good times' to last, but we forget that the 'sharks' need boom and bust to make money at both ends.
Why don't people realise that share dealing and believing the hype about 'what the market thinks' is really to blame for all this. Shares were never intended to be a short term gamble. They were meant to be 'you and I' investing in companies who needed money to grow., Then taking a little profit when they did. But we sit back while big investors asset strip our industries and we allow them to die and China to step in with their shoddy goods. This is wayyyy beyond a joke now. It seems only Germany has a secure economy in the whole of Europe! I think... (but I'm no expert) That's because they mostly stuck to good quality and small to medium size non-public industries.
If you stop believing in the hype about money it magically looks just as shallow and manipulative as religion!
@CindyP. Well done for being decisive at least and I hope you pursue the mis-sold action and kick their ass! even a big money business might blanche at the words 'Class Action'.
Nov 23rd 2010, 2:27 pm
#7
Lost in BE Cyberspace
Joined: Apr 2009
Posts: 7,749
Re: Clip /Swap Mortgages - Bankinter
My son is about even on value and mortgage. So he has no equity as such. It's as if he is living in a seriously cheap rental until they get together a good deposit for a better house. But he would definitely have been worse off fixing on a higher rate and still owing on the loans he's now managed to pay off.
Ahh but You see you did get me started;-) Beware. A rant is coming up!
Ask yourself where has all that 'value' gone. Ireland is no different today as it was yesterday or last year etc. neither is portugal, Spain or Greece. The only ones laughing are the lenders Including those who are ramping up the interest to the countries who are 'in diffficulties'. We're blaming ourselves for expecting the 'good times' to last, but we forget that the 'sharks' need boom and bust to make money at both ends.
Why don't people realise that share dealing and believing the hype about 'what the market thinks' is really to blame for all this. Shares were never intended to be a short term gamble. They were meant to be 'you and I' investing in companies who needed money to grow., Then taking a little profit when they did. But we sit back while big investors asset strip our industries and we allow them to die and China to step in with their shoddy goods. This is wayyyy beyond a joke now. It seems only Germany has a secure economy in the whole of Europe! I think... (but I'm no expert) That's because they mostly stuck to good quality and small to medium size non-public industries.
If you stop believing in the hype about money it magically looks just as shallow and manipulative as religion!
Ahh but You see you did get me started;-) Beware. A rant is coming up!
Ask yourself where has all that 'value' gone. Ireland is no different today as it was yesterday or last year etc. neither is portugal, Spain or Greece. The only ones laughing are the lenders Including those who are ramping up the interest to the countries who are 'in diffficulties'. We're blaming ourselves for expecting the 'good times' to last, but we forget that the 'sharks' need boom and bust to make money at both ends.
Why don't people realise that share dealing and believing the hype about 'what the market thinks' is really to blame for all this. Shares were never intended to be a short term gamble. They were meant to be 'you and I' investing in companies who needed money to grow., Then taking a little profit when they did. But we sit back while big investors asset strip our industries and we allow them to die and China to step in with their shoddy goods. This is wayyyy beyond a joke now. It seems only Germany has a secure economy in the whole of Europe! I think... (but I'm no expert) That's because they mostly stuck to good quality and small to medium size non-public industries.
If you stop believing in the hype about money it magically looks just as shallow and manipulative as religion!
Jun 7th 2011, 7:28 am
#8
Forum Regular
Joined: Jun 2011
Posts: 42
Re: Clip /Swap Mortgages - Bankinter
We too were conned by Bankinter into accepting one of these contracts, I believe they are called Clip or Swap Hipotecarios.
We've complained, without success, to Bankinter and a month ago sent all the details to Banco de España, their Servicio de Reclamaciones Dept. that I understand overseas dubious banking practices.
However, I'm not holding my breath!
We've complained, without success, to Bankinter and a month ago sent all the details to Banco de España, their Servicio de Reclamaciones Dept. that I understand overseas dubious banking practices.
However, I'm not holding my breath!
Jun 19th 2011, 6:08 pm
#9
Forum Regular
Thread Starter
Joined: Jan 2005
Posts: 99
Re: Clip /Swap Mortgages - Bankinter
Is there a way of doing a personal reply on here?
Mondeo, I have some info that might help you. We did join a group action against Bankinter and it's going to court shortly, it was going to be Monday but I think it might now be at the end of the month. the group seem to have had a good deal of success with taking group action against quite a few banks and we are hopeful that we will get a ruling that means that Bankinter have to repay the cost of the penalty they imposed plus the interest that they charged for this product, on the basis that it was an unfair contact mis-sold to a lot of people.
If you know how to PM me or instant message me from here , do so and I'll give you contact details. They've been very helpful to us. There are some costs involved but we felt it was worthwhile as we potentially have about 22,000 euro to recoup.
Mondeo, I have some info that might help you. We did join a group action against Bankinter and it's going to court shortly, it was going to be Monday but I think it might now be at the end of the month. the group seem to have had a good deal of success with taking group action against quite a few banks and we are hopeful that we will get a ruling that means that Bankinter have to repay the cost of the penalty they imposed plus the interest that they charged for this product, on the basis that it was an unfair contact mis-sold to a lot of people.
If you know how to PM me or instant message me from here , do so and I'll give you contact details. They've been very helpful to us. There are some costs involved but we felt it was worthwhile as we potentially have about 22,000 euro to recoup.
Jun 19th 2011, 6:33 pm
#11
Forum Regular
Thread Starter
Joined: Jan 2005
Posts: 99
Re: Clip /Swap Mortgages - Bankinter
Great, thanks I'll do that
Jun 20th 2011, 6:54 am
#12
Forum Regular
Joined: Jun 2011
Posts: 42
Re: Clip /Swap Mortgages - Bankinter
Many thanks for all the info Cindyp - am sending an email to the lawyer NOW!
Jun 20th 2011, 7:15 am
#13
Forum Regular
Thread Starter
Joined: Jan 2005
Posts: 99
Re: Clip /Swap Mortgages - Bankinter
She's very helpful, good luck. 
Oct 18th 2011, 7:26 pm
#14
Just Joined
Joined: Oct 2011
Posts: 1
Re: Clip /Swap Mortgages - Bankinter
I'm also a victim of one of those Clip products which has been tagged on to my mortgage payments with Bankinter, which is costing me approx.
€350 extra each month. I've decided I really need to do something about this. I must take legal action in some form - either with a group or through a lawyer. Who can advise me? Who can I approach for advice and assistance? I hope someone out there will get back to me....
€350 extra each month. I've decided I really need to do something about this. I must take legal action in some form - either with a group or through a lawyer. Who can advise me? Who can I approach for advice and assistance? I hope someone out there will get back to me....
Oct 18th 2011, 8:26 pm
#15
MODERATOR
Joined: Mar 2007
Location: Costa Valencia
Posts: 14,800
Re: Clip /Swap Mortgages - Bankinter
I'm also a victim of one of those Clip products which has been tagged on to my mortgage payments with Bankinter, which is costing me approx.
€350 extra each month. I've decided I really need to do something about this. I must take legal action in some form - either with a group or through a lawyer. Who can advise me? Who can I approach for advice and assistance? I hope someone out there will get back to me....
€350 extra each month. I've decided I really need to do something about this. I must take legal action in some form - either with a group or through a lawyer. Who can advise me? Who can I approach for advice and assistance? I hope someone out there will get back to me....
BE is a very large expat website, so if you have problems finding your way around we have concierges who will try to direct you. The moderators for the Spanish forums are Mitzyboy and Fred James, moderators are there to ensure that the site runs smoothly within the rules of BE. Problems and complaints should always be addressed to a moderador who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are friendly and helpful with a wealth of knowledge of the issues of living in Spain. At the top of the page you will find a quirkily named thread called Free Beer which is full of important and useful information. Hope you enjoy your time participating in the forums.
Please let us know if you need any further help.
Rosemary and Graham