# 300 Cohort -  traded up - Should I avail of the 2.74% tracker rate?



## rustbucket (5 Oct 2020)

I received our tracker interest rate retention letter and brochure today. No extra Cheque/payment included.

tracker rate offered now as we have moved properties is 2.74% should we choose to avail of it.

‘If we choose to apply TIRR to our account they will apply redress and compensation to the portion of the loan eligible’

food for thought although I had assumed that compensation was a given at 15% irrespective of whether we chose the TIRR or not?


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## Brendan Burgess (5 Oct 2020)

Hi Rusty

Can you give some details? 

1) Date your fixed rate ended - presumably late 2008 /early 2009 
2) Your original LTV 
3) Date you traded up. 

Did they tell you the redress calculated according to the Ombudsman and , separately, the redress according to the TIRR? 

Brendan


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## rustbucket (5 Oct 2020)

Brendan Burgess said:


> Hi Rusty
> 
> Can you give some details?
> 
> ...


Hi Brendan


Fixed rate ended Oct/nov 2008
Original LTV was 90%
traded up Dec 2016/Jan 2017


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## Brendan Burgess (5 Oct 2020)

Hi Rusty

I have moved your post here and edited the title.  

I will deal with the 1.74% and 2.74% rates in the one thread. 

*Should you take up an offer of ECB +2.74%?*

It depends on your current LTV.  

If you are on a fixed rate or a variable rate higher than this, then you should avail of this immediately.  You get to break out without paying a break fee. 

Then you should review your options. 

You can fix for 5 years with AIB at 2.35% if you have an LTV of <50% 
You can switch to Avant and fix for 7 years @1.95%  if you have an LTV of <60% 

While there is some value in a guaranteed margin of 2.74% , personally I think a fixed of 1.95% for 7 years is a much better guarantee.  

Brendan


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## Bobby25 (5 Oct 2020)

Hi Brendan,

We also received the same letter today part of the 300 cohort with a rate of 2.55% based on our LTV rate. Letter was some what confusing stated that if we wish to apply TIRR to our new mortgage took out with aib back in 2017 they would apply comp and redress to portion of loan that was eligible for TIRR. I’m not sure what this means and also what affect on the 15% automatic compensation would it have if take up the offer. 

really appreciate your help


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## rustbucket (5 Oct 2020)

Brendan Burgess said:


> Hi Rusty
> 
> I have moved your post here and edited the title.
> 
> ...



we currently are on ltv 50-80% rate.The new rate offered is slightly lower so worth it certainly for the short term I guess with a view to moving or fixing at some point potentially. Problem with fixing is their recent correspondence says any change will never revert back to tracker afterwards.

the compensation bit is really confusing.


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## Brendan Burgess (18 Dec 2020)

An update on this strategy.

If you traded up, you should definitely ask for the 2.74% rate.

I have set out the calculations in this thread 





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						Key Post - The 300 Cohort - traded up, tracker retention issues
					

Hi all,  Has any one heard back from aib regarding the tracker retention form. Part of the 300 group closed old mortgage account in March 2017 took out new mortgage same month again with aib. They contacted us at the start of November regarding the new mortgage account by telephone stating that...



					askaboutmoney.com
				




AIB will calculate additional redress for this second part of the mortgage. 

They will then compare the total under the Ombudsman Scheme with the total of the two mortgages under the Central Bank Scheme and pay you whichever is higher.

So you may get additional compensation.

Even if the combined Central Bank Scheme is not higher than the Ombudsman's Scheme, you will get €1,230 for professional advice to check the new calculations.  

After you get it or get the calculation, you can decide if you want to fix or switch to another lender.

Brendan


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