# Original Offer of Mortgage Loan and New Fixed Rate Letter



## imni

We took out a mortgage in 2008 and fixed for 3 years in 2010.  

Our fixed rate is now almost at an end and we received a letter offering the various rates we can move onto.  The option to move to tracker is not listed however.

The original letter Offer of Mortgage Loan had a Loan Type: Variable Annuity, and Interest Rate Description as: Tracker Home LTV>50%<80% with a ECB + Margin of 1.15%

The original mortgage offer, states that at the end of a fixed interest rate period that the customer could choose between, a further fixed rate period, conversion to variable rate or conversion to a tracker interest rate.

Should we have gotten an option to move back to the tracker rate rate also?

My other question is, does the letter we signed moving from to a fixed rate null and void the original mortgage offer?   

I can not find this letter anywhere and I am not sure if we ever received one in the post as we signed the letter moving to a fixed rate in a mortgage brokers office so I am not sure what conditions were on this letter.


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## Bronte

Looks from what you've posted that you should be entitled to a tracker.  You can ask them for a copy of the fixed rate document you signed.  Just telephone the mortgage department. 

Can you tell us which bank this is please?


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## imni

It was AIB bank.  I am going to try to get a copy of the fixed rate letter to see what was on it.


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## imni

I wrote to AIB asking them to send me a revised letter offering the original rate of ECB plus 1.15%.

I received a letter back from them today and it's not good news.

It quoted the following paragraph from my letter of offer:

_"At the end of any fixed rate period, the Customer may choose between:
(a) a further fixed interest rate period, or
(b) conversion to a variable interest rate Mortgage Loan, or
(c) conversion to a tracker interest rate Mortgage Loan,
at the Bank's then prevailing rates appropriate to the Mortgage Loan"_

(The bank letter underlined the prevailing rates part).  They stated that the bank discontinued providing tracker rates to customers in October 2008 and so regretted to inform me they could not accede to my request for a tracker rate.

Is this the end of the line for us?  Any thoughts appreciated.


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## PortoBoy

I'm no expert, but surely trackers weren't "discontinued" as such, they were simply phased out for new applicants. Does AIB currently have customers on trackers? Absolutely, and whatever rate or rates they are on are, by definition, "prevailing" rates. If just one other customer is currently paying ECB +1.15, then it's a prevailing rate in my book, and you'd be entitled to it. That logic seems pretty clear to me, but if it's flawed, I'd welcome anyone else's view on it.


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## Bronte

imni said:


> _(c) conversion to a tracker interest rate Mortgage Loan,_
> _at the Bank's then prevailing rates appropriate to the Mortgage Loan"_
> 
> They stated that the bank discontinued providing tracker rates to customers in October 2008 and so regretted to inform me they could not accede to my request for a tracker rate.
> 
> Is this the end of the line for us?


 
You can ask them for a final response letter and then take the case to the ombudsman, but from posters on AAM it's not at all clear to me when the ombudsman rules for the customer and the bank. In addition the ombudsman does not base his rulings on a similar case so it makes it all the more difficult to advise.

Another option is the poster Kissane, called padkiss I think. He apparently takes cases for people where he thinks they have a good chance. Naturally you'd have to pay him for this. But Burgess recommended him before. I presume he won't take on your case it he thinks its' not worthwhile.


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## peteb

I would think that if they are saying a tracker at a prevailing rate.  And their hand was forced that that could be a tracker at +4.5%. Which is useless.


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## cloughy

*any update*

just wondering if you got any update, we got a letter from AIB today saying that after our fix (3 fixed period) we re also entitled to a tracker at prevailing rate ecb + 4.91% per the original T&C's of our letter of offer, but never in 2009/2012 when we rolled the fixed period were we ever offered a tracker, what should we do, going to ask Bank to send out the T&C's but wondering why they are saying the tracker at prevailig interest rate is a tracker with a margin of 4.91%. if we had been offered a tracker in 2009 or 2012.

anyone with a similar story and possible happy outcome ?


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## furby

Got the same letter in the post today. AIB have been busy ! Haven't made any progress
on it yet, so any advice or updates would be great. The margin of 4.91 seems pretty steep to 
me. The only possible attraction is that I'd have slightly more faith in Mario than the guys
running AIB right now. Not sure its worth it though.


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## Balfour

I am in the same boat as Furby, got a similar letter from AIB before christmas 

Don't know what to do next, advise welcomed


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## Bronte

If you guys think you are entitled to a tracker you must firstly write a letter of complaint to your bank, then you need to get a letter called 'final response' from them, with this you then appeal to the ombudsman.  Please mention in your first letter that you will be going to the ombudsman as this just might, make them react.  But I wouldn't hold out much hope as the ombudsman's office is treated with indifference by the banks.


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## pats22

hi
i have been through this with AIB before - look up my user name for full details.
As far as my ruling from the ombudsman was concerned it was only what was in the original mortgage offer that was of any relevance.
If you were originally on a tracker and it stated you could go back on a tracker in the original mortgage than you should be OK.

You should be able to get  ECB + Margin of 1.15% 

Patrick


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## Gerry Canning

Methinks ,pats22 is correct.
Imni...I just do not see underlining anything as overly important.

I assume others have had same sort of letter from AIb and got their Tracker back, so please let us know.


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## imni

We sent letters to the bank, they initially rejected all requests to be put back on our original tracker of ecb + 1.15%.  But in their last letter they seemed to change tactics and have offered a ridiculous tracker, (can't remember exact amount but it was something like ecb + 5%) which they said was a commercially priced rate.

Very frustrated and stressed by it all to say the least.


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