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PostPosted: April 15th, 2015, 3:24 pm 
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I have had an interest only mortgage for five years with Barclays IT. Someone had been trying to get in contact with me, and I noticed that my direct debit had been cancelled. I contacted the gentleman who was trying to contact me and he told me that my interest only mortgage meant that i had to pay a lump sum every five years, and it was due. When I said that I had not seen this in my contract, he said that I probably missed it because of the language barrier, however, my contract was looked at by an Italian gentleman. He then said if i could not pay the lump sum, then I could change to a repayment mortgage, and I could give him my financial situation over the phone then and he would do it for me. Otherwise I would have to pay the lump sum. When this was paid every five years there would be another lump sum, and this would be double the one he had given me.
He said that the person who was working with Barclays and dealt with my mortgage at the time infact, failed to tell me this information, but he has now left.

He said there were a lot of people in the same situation.

Has anyone had the same problem. At the moment I am in limbo - I cannot reinstate my direct debit without one or the other actions occuring!!!!

Is this legal????????


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PostPosted: April 15th, 2015, 7:20 pm 
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Joined: December 2nd, 2009, 3:16 pm
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Location: N Ireland
Oh dear. I have an interest only Barclays mortgage taken out through broker JP Lynch in 2011. Initially I dealt with a guy called Christy and in the final stages with Giampiero (the latter was rather cranky). I was not told about paying a lump sum at any time and had not planned to do so until I sold the property. Was the lump sum a % of the mortgage amount?


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PostPosted: April 15th, 2015, 9:29 pm 
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Hi,

yes 10% after 5 years, then he told me would be double that in 2020 and then increase even further every five years until the whole amount was paid back by the end of the mortgage.

Another Italian miss-sale! If I was told in the beginning I might have shopped around more thought I was getting an ok deal!


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PostPosted: April 15th, 2015, 9:36 pm 
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It is quite usual to have to pay lump sums off along the life of the 'Libero' mortgage.

Lorica


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PostPosted: April 15th, 2015, 10:15 pm 
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Joined: February 25th, 2010, 5:47 pm
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I too have a Barclays mortgage and was told that I could not get an interest only mortgage but when I got the mortgage it essentially looked like an interested only product but upon investigation I noticed that every 5 years a lump sum is due which pays off the principle.
To be fair I was told it would be a repayment but I knew the payment was too good to be true.


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PostPosted: April 15th, 2015, 11:02 pm 
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Joined: December 2nd, 2009, 3:16 pm
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Location: N Ireland
After I got my interest-only mortgage, I remember reading on this forum that Barclays weren't doing them anymore. I must check my documentation. Barney, did you use JP Lynch also?


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PostPosted: April 16th, 2015, 2:16 pm 
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Yes Evie I used them. If you go online to your Barclays Bank account and click My Account - Loans it will give you a schedule. Mine is a lump sum every 5 years x 4 and that's it. The interest gets less as the lump sums are paid and probably would be best to pay more as you go.


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PostPosted: April 16th, 2015, 7:58 pm 
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Joined: June 25th, 2008, 6:39 pm
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
The terms of a Libero Mortgage (Interest only) with Barclays are below, hope it is useful.
The spread and other aspects may have changed since mine was done in October 2008.
My mortgage was organised by Giampiero Marchetti who was based in Palermo and he also set up my Barclays account and monthy Direct Debit. He left Barclays some years ago now.
The reason why I have been posting the one month Euribor rates is because the interest you pay monthly is based on this plus the "Spread". The Euribor is down again at -0.029%. Since 1999, the Euribor rate was between 2% and peaked to 5% in September 2008 thankfully before dropping quite rapidly the following month to 0.5% with a slight peak at 1.5% in mid 2011 and has been dropping ever since to it's present negative level. Long may it last.
If you are interested in viewing the Euribor go to :-
http://www.euribor-rates.eu/euribor-rate-1-month.asp


LIBERO MORTGAGE
Variable Rate with Flexible Capital Reimbursement (Purchase only)
Properties considered Residential properties recorded on the housing “Catasto” Register at Land Registry. First and second home only.
Eligibility Salaried employees who have been in their current job for at least one year.
Self-employed individuals who have been in their current business for at least two years.
Mortgage to be repaid by the age of 75.
Applicants who have not had any County Court Judgements against for non payment of debt.
Sum loaned Min 50,000 Euro. Max 70% of property valuation (purchase)* and 65% of final property value (renovation). * 80% cases must be discussed on a case-by-case basis.
Mortgage Charge First charge will be taken.
Mortgage Lien equals 200% of the loan.
Duration of loan 15, 20 and 25 years.
Instalments due Monthly. The date of payment will be established as follow:
• for mortgages completed between the 2nd and the 7th day of the month: the 7th of the month;
• for mortgages completed between the 8th and the 14th day of the month: the 14th of the month;
• for mortgages completed between the 15th and the 21st day of the month: the 21st of the month;
• for mortgages completed between the 22nd and the 1st day of the month: the 1st of the month.

Means of repayment Via bank direct debit from an Italian bank account.
Instalment amount Monthly instalment includes interest. only.
Remains constant for the first two instalments and is calculated at the entry rate. It is variable for the remainder of the term. The interest rate is indexed to the average of EURIBOR 1 month 365 set two months prior, plus the spread. 1.4%
Capital Reimbursement The borrower must keep scheduled at least these capital reimbursement:
Duration of the loan 15 years: 25% of the original amount of the loan within the 5th year, another 35% within the 10th year and the remaining 40% within the 15th year.
Duration of the loan 20 years: 15% of the original amount of the loan within the 5th year, another 20% within the 10th year, another 30% within the 15th year and the remaining 35% within the 20th year.
Duration of the loan 25 years:: 10% of the original amount within the 5th year, another 15% within the 10th year, another 20%within the 15th year, another 25% within the 20th year, and the remaining 30% within the 25th year.
The capital can not be reimbursed before the deadline of the 4th instalment. The minimum amount refundable is 1.000 Euro, via credit transfer and interest have to run from the instalment deadline.
Property valuation The valuation will be carried out by a surveyor approved by Barclays, with the cost payable by the borrower.
Completion Takes place by means of signing a public document in the presence of a Notary approved by Barclays, or appointed by the borrower, provided Barclays has no objection. The costs are payable by the borrower.
Completion fees Completion fees will be added to the first instalment.
Application fees In percentage of the loan. With a minimum and a maximum will be deducted from the amount loaned.
Building Insurance Mandatory.
Premium is paid in a lump sum which is valid for the whole of the mortgage term.
Premium:
Duration of loan (years) : 10 15 20 25
Cost per thousand euro: 1,45 2,64 3,02 3,70
Life Insurance Optional. Premium is paid in a lump sum which is valid for the whole of the mortgage term.
Funds Release The loan funds will be released to the Notary in the first instance and paid to the vendor or to the borrower only once the mortgage charge has been registered.
For purchase only and for loans up to 500.000,00 Euro: the borrower can ask for a service called “Pronto Cash Mutuo” in order to have the funds immediately. There is a charge for this service.
The following will be deducted from the amount loaned: mortgage registration tax, application fees, insurance.
Early redemption Early redemption can only be made after the 4th instalment.
During the first 5 years, for early redemption above the 50% of the original amount of the loan, a penalty of 3% has to be paid on the part of the loan exceeding the 50%.
In subsequent years no penalty will be applied.

This document does not constitute an offer. It is an information sheet on our product. Detailed information on conditions applied are available on the “Foglio Informativo” related to the chosen product and also on the ESIS which is compiled in accordance with the European Code of Conduct. Such documentation is available in our branches and through the link “Bank transparency” present on pages of our internet site.


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PostPosted: April 16th, 2015, 11:26 pm 
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Joined: December 2nd, 2009, 3:16 pm
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Location: N Ireland
Thanks Barney, I never noticed that before. Thanks David, the %s you quote for a 20 year mortgage are identical to my schedule. All news to me! Need to start saving for June 2016.


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PostPosted: April 29th, 2015, 10:55 am 
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
Today the one month Euribor seems to have stabilised at -0.034, the lowest it's ever been. When checking my Barclays account the negative Euribor figure appears to be counted as my current interest rate for the coming month is 1.39 which is less than 1.4 which is the "spread" for my mortgage.


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PostPosted: April 29th, 2015, 3:32 pm 
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I had a lot of discussions with Barclays and decided that my interest only with lump sums was far preferable to a repayment... as I do hope to sell in the future if the market picks up........living in hope!!!

I have to say how helpful and informative Barclays have been on this occasion (not my usual experience when discussing issues with them!!!) and how easy they made it for me to transfer over.

So got the piggy bank out now.


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PostPosted: April 30th, 2015, 7:09 pm 
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Joined: June 5th, 2007, 4:36 pm
Posts: 1105
Location: Italy
davidnam wrote:
Today the one month Euribor seems to have stabilised at -0.034, the lowest it's ever been. When checking my Barclays account the negative Euribor figure appears to be counted as my current interest rate for the coming month is 1.39 which is less than 1.4 which is the "spread" for my mortgage.


That is interesting news - I was wondering how that would work. I fixed my mortgage for 10 years, thinking it could not possible go any lower, who'd have thought about sub zero?

See also my article about current mortgages in Italy: https://selectiveitaly.com/news/its-off ... on-the-up/


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PostPosted: May 1st, 2015, 11:03 am 
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
The 1M Euribor on the 29th April is down further to -0.38, it's quite a difference to the 3M Euribor at -0.005! In reality I suppose that it only translates to just a few cents or Euros / month depending on the amount of the mortgage.


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PostPosted: May 15th, 2015, 9:52 pm 
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
The 1M Euribor is -0.049 yesterday! Will it get to -0.05?

Another Barclays mistake
On another matter subject matter re Libero Mortgages and Capital repayment.
Two months ago I telephoned and then requested BB by email to advise me how to pay some of my Capital repayment in advance. Some weeks later they sent by email the BIC and IBAN of the account I had to credit. They didn't send me the address of the Branch that I required to fill in the on-line transfer form so emailed them again requesting this. Having no response after three weeks I telephoned them with regard to this and discovered that the BIC that they had sent me was incorrect. I'd hate to think what may have happened to the money if I had sent it to first BIC they gave me.
I will be transferring money from my current account in a week or two which I hope will then be deducted from the Capital I owe them.
I will keep you posted on the outcome. Fingers crossed that it will be alright.


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PostPosted: May 18th, 2015, 1:27 pm 
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I had the same worry when i transferred the money.
I made them send me a receipt for it once received and confirmation that it had been credited to my account - which I now have.

I will be contacting them in a month to make sure everything has been actioned satisfactoroly - I of completely no faith now!


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PostPosted: May 19th, 2015, 12:28 pm 
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
By transferring funds using BB "Payments", "Bank transfer" on-line facility you automatically receive an email that the funds have been sent.
By checking your Global postion you will be able to view the amount of your "loan" to see if the payment sent has been deducted.
The 1M Euribor reached -0.051 yesterday. Can't see it getting much lower unless Greece exits the Eurozone.


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PostPosted: May 23rd, 2015, 10:48 am 
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Posts: 491
Hi

Try to speak to Aurora at BB client services/mortgages. She is excellent in advising you how to pay off chunks off your mortgage. We had 2 mortgages. The Libero mortgage allowes you to just pay off chunks without the need to contact anyone at BB Italy. The repayment mortgage we had on another apartment was a little more complicated to pay off.
Speak to Aurora.

Lorica


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PostPosted: May 27th, 2015, 10:18 pm 
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Joined: June 25th, 2008, 6:39 pm
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
Feedback on repaying Capital on my Libero mnortgage.
I used the BB on-line "Payments" facility using the BIC, IBAN and Bank address supplied by BB and also my mortgage number.
When checking my "Global Position" on my account the Capital Repayment I sent to them had been deducted from my loan balance within 24 hours.
Pleased to see that they can get things right at times!


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PostPosted: June 18th, 2015, 6:52 pm 
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
Sorry if I have misled anyone who has read this posting since last night before I have had to edit it this morning. My maths has been somewhat lacking and thought that BB hadn't taken into account the current minus 1M Euribor!
I have just checked the "summary" regarding my mortgage under the "Loans" heading on my on-line BB account and have discovered that the "Current rate" is quoted as 1.35.
My monthly interest (plus some admin. charges) has been reducing marginally for some considerable time. This was because the 1M Euribor has been dropping. The "Current rate" of 1.35% is less than the 1.4% which is the spread on my contract, so BB do take the minus figure into account when calculating the monthly interest one has to pay.
The 1M Euribor is now at an all time low of -0.065 (it was -0.025 two months ago). It has seem to have levelled out at this figure for the past 4 days. It will be interesting to see what happens at the end of the month when the decision regarding Greece and it's debts will be known and the effect it will have on the Euribor and on the foreign exchange rates.


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PostPosted: August 29th, 2015, 9:55 am 
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
The 1M Euribor has been steadily going down and the rate has reached an all time new low of -0.99% on the 27th August.
Will it get to -0.10% after the weekend?


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