# Compensation in lieu of not reinstating tracker



## deansmith27 (19 Aug 2018)

Would anyone have advice in calculating a reasonable figure of compensation for losing a tracker and being unable to return to one due to the forced sale of the property.

What I am considering:

Total cost of credit if house retained over the life of the loan

(I) With overcharge (300k)
(II). Without overcharge (120k)

1. With 180k of a difference, how could one put a cost on never getting a tracker back. Would it be reasonable to assume that one would have payed off the mortgage if on a tracker over a 35 year time frame?

2. The original tracker mortgage would of been paid when I was 55 when I planned to retire but now I will be 70 if i'm lucky enough to get another mortgage.

Could I claim for those years?

3. The damage to my credit rating renders me unable to get another mortgage or even obtain credit for at least another 5 years, after the tracker redress is resolved.

4. Costs for renting (and not paying the capital down on a mortgage) during the years since the house was sold?

5. Having to leave 3rd level education due to the overcharge?

6. The money invested in the house while we lived there. ie extensions & home renovations etc.

So are these reasonable claims when anticipating a tracker redress appeal and who would be best to employ to assess the losses.

NB. I have contacted my bank which only hold 7 years current account statements which is understandable but does not help in any assessment.

Thanks in advance

DS


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## Palerider (19 Aug 2018)

Why was your tracker rate removed, was there a issue meeting the conditions.


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## deansmith27 (19 Aug 2018)

Palerider

Yes the tracker rate was removed and i'm still paying the residual debt left over from the sale on a standard variable rate

I couldnt afford to meet the payments pre sale


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## Seagull (21 Aug 2018)

My thinking is that you should be returned to the position you would be in if the tracker had not been removed in error. Would you have been able to meet the full repayments is left on the tracker rate? If so, then the ideal solution should be for the bank to 
- buy back your property
- calculate what you should have paid based on the original mortgage, and then give you a new mortgage based on what has been paid
- repay any rent you have paid in the interim
- compensation for the forced sale and hardship of losing the tracker

Given that it's probably not practical for them to buy back your old house, the other option would be to compare the current value against the sale price, and give you the difference.


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## deansmith27 (21 Aug 2018)

Hi Seagull

Yes I would of been able to afford the mortgage had I not been overcharged. 

The problem is the residual debt of 170K and the likelihood that they will only offer to quash the debt in exchange for the compensation due to me, which would be totally unacceptable to me.

The irony here is the residual debt wouldn't exist had they not overcharged me.

Your ideal solution would be ideal but I think the bank will do their utmost to deny my claim.


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## Pokemon (22 Aug 2018)

Deansmith27 you need to get a Forensic Accountant to carry out an independent review of your finances. The outcome of that review will indicate if you were in a position to meet Historical repayments.


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## deansmith27 (22 Aug 2018)

Pokemon thanks for the tip. Worth the investment hopefully


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## Brendan Burgess (29 Aug 2018)

Why did you sell the house? 


Did the lender refuse to reschedule the loan? 

Could you not have afforded the rescheduled repayments? 

Some people pay nothing on their mortgage and then make a spurious claim that they lost their home because they had not tracker. It would not have mattered if the interest rate was zero as they were paying nothing anyway. I am not suggesting you were in this position. 

But most people on SVRs who engaged with their lender got a restructuring which they could afford.

Which category did you fall into? 

Brendan


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## deansmith27 (30 Aug 2018)

Brendan,

The mortgage became unsustainable after years of cutting back. We needed to lower monthly repayments by €350 p/m to keep it long term. 

The account only had 2 months arrears but EBS would not allow interest only, extend term of the loan or plainly just negotiate. I have letters back from Sars showing they would not negotiate. 

A voluntary sale for loss was agreed as EBS judged the mortgage unsustainable in 2014. 

The house was bought at near peak and sold at near bottom of the housing cycle.

For example, had we been on a tracker at the time of sale, we would have been paying 1.5% instead of a 4.58% SVR. The difference here would of been €530 p/m.

DS


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## deansmith27 (30 Aug 2018)

Which category did you fall into?

Brendan[/QUOTE]

Unfortunately we fell into the category ''stop spending as much on food and pay your mortgage''


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## Brendan Burgess (30 Aug 2018)

deansmith27 said:


> The account only had 2 months arrears but EBS would not allow interest only, extend term of the loan or plainly just negotiate. I have letters back from Sars showing they would not negotiate.



That is very odd. EBS restructured thousands of loans. 

Why did they refuse to reschedule your mortgage? 

Brendan


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## deansmith27 (31 Aug 2018)

Possibly because we were both single public servants with no dependants at the time. 

They said we could afford it as per the reasonable living expenses guidelines until the second arrear happened

We had warned them 4 months before we went into arrears that it was very likely to happen and provided multiple sfs.

Then they finally admitted we were unlikely to meet scheduled payments in the long term.

I don't know why they wouldn't reschedule the loan in any way.


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## VBiz74 (2 Dec 2018)

Did you ever get this sorted? How did it turn out for y you?


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## deansmith27 (3 Dec 2018)

Hi VBiz74,

No still waiting to hear back if we are impacted by the tracker scandal. It's EBS so it could be a long while yet.


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