From memory if you are in advance payments on your loan you can request that cash back.
You can then pay it off your topup loan.
Or you could stop making payments to the tracker until it’s inline with your contract and hammer money into top up loan.
My understanding from KBC is anyone who took out a mortgage before September 2013 has this redraw feature. I have been granted a partial one for money over-paid to a certain date, as my mortgage was after this date. There is no reason you should not be able to redraw the funds overpaid.
I've asked if I can either take the capital payment off the fixed portion instead or withdraw it altogether. I also phoned twice last week only to be told my email won't be answered until at least the end of next week despite getting an automated response saying I'd get a reply within 3-5 working days.
I think most banks departments are flooded with queries at the moment. They are probably answering them the best the can, but I can imagine its not the easiest job at the moment for the staff working there. I appreciate your frustration, but an extra week won't make a material difference, and you can always request it to be back-dated based on the timeliness of their responses.
I wil email the tracker team at kbc and await a response. They seem to have different ans each time i phone.
I am not sure I would bother email the tracker team. If you accept you are not getting the tracker on the top-up, I would simply raise a formal complaint into KBC to address it via the standard process. You just need to decide what you want to do.
Option 1 - redraw the overpayment and pay off non-tracker portion. You can do this without raising a complain and simply write to them asking for the redraw and then overpaying with instruction to apply to non-tracker element. This means you will benefit for the rate difference going forward but not historically.
Option 2 - raise the complaint to have the overpayment applied to the non-tracker element retrospectively, on the basis that as the mortgage was all on the same rate and treated as a single mortgage, there was no instruction to be applied at the time. The instruction would have been supplied in the event of a split mortgage on different rates. However since KBC made the error, they should correct the error. The advantage of this approach is if they agree it will be applied retrospectively; the downside is it is likely to be a much bigger fight.
You should make the decision based on when you made the overpayment and how much it was - in simple terms how much would you save by having it applied retrospectively? The other alternative is go with Option 1 and appeal the compensation based on the historic interest overpaid. It is likely this would be a cleaner and quicker alternative.
If you overpaid by say 10k in total, and you go from a LTV rate of say 3.55% to tracker of 1.25% - the difference is 2.3% - so 230 euro a year. You just need to work out now much effort is this worth !! Only you know the figures