# My mortgage payment has been reduced, but I got no letter about getting my tracker back



## nappy7000 (13 Aug 2016)

The interest rate was changed to a low rate just before the mortgage payment was due to be taken out last month. A fixed rate was being applied to the account. We had an idea we were on a tracker at some stage between 2005 and 2009 but weren't certain. We haven't received any letters or communications from the bank about the change or what is going on. 
I have all the papers and statements for the mortgage.
What do we do now?
How long will this rate last?
How can they just change it and not notify or explain it?


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## corktim (13 Aug 2016)

I'd say you should pick up the phone and ask them. It would be unusual for them to break you out if a fixed rate in any event without your consent.


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## nappy7000 (13 Aug 2016)

The new monthly amount is E450ish less. I rang them to make sure it wasn't a mistake as I could not afford to pay that kind of money back at a later date. They said a letter was in the post. The wording in one of the offer letters  for the tracker from a few years ago was "your agreed margin as set out above will not change, even if the bank subsequently introduces a different tracker offering, at a margin which may be either higher or lower than your agreed margin. This margin is guaranteed for the full term of the loan unless there is a material change in the terms of the loan".......


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## corktim (13 Aug 2016)

Back up a bit, what lender is this and is this the first letter you are getting?


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## nappy7000 (13 Aug 2016)

We haven't got any written letter or phone call from them about this change in payment amount. We are totally clueless apart from my vague phone call with them. I don't want to jinks this and we are a little bit afraid of the bank in case we may need them later down the line.


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## PadKiss (13 Aug 2016)

Hi all Aib have begun reverting affected accounts to tracker but it has to change on their system before the bank can write to you hence why the rate changes on the system. 
However the investigation is not complete so continued patience on the matter unfortunately. It will be somewhat disjointed at the beginning. I will have a support/information process established in the next week or so for all affected to fully inform each with what is happening with each lender Padraic


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## nappy7000 (13 Aug 2016)

Thanks for all your input....


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## corktim (14 Aug 2016)

Padraic that would be fantastic


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## peemac (14 Aug 2016)

nappy7000 said:


> The new monthly amount is E450ish less. I rang them to make sure it wasn't a mistake as I could not afford to pay that kind of money back at a later date.



You may get even better news soon...  I would guess that you will be due a refund of the extra amount you paid every month from the time your fixed rate ended and now. 

Possibly it will be many thousands. 

Have a read of the different tracker threads here and some of the newspaper reports.

But I would think you will be very happy especially as it seems to have hit you by surprise.


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## nappy7000 (14 Aug 2016)

It was a shock. I thought there was a six year rule? Does this rule start from when the fixed rate ended. 
I spent all weekend reading up on it. We were living on bread and water and on the brink of bankruptcy a few times. We are over the moon. Our gratitude goes to those people who campaigned and talked to the banks.


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## peemac (14 Aug 2016)

nappy7000 said:


> It was a shock. I thought there was a six year rule? Does this rule start from when the fixed rate ended.
> I spent all weekend reading up on it. We were living on bread and water and on the brink of bankruptcy a few times. We are over the moon. Our gratitude goes to those people who campaigned and talked to the banks.


I reckon your user name should change to "Happy7000"  

Six year rule applies to you taking an action. 

The rule  however does not apply to the Central Bank when they see it as a breach of regulation or where they see wrongdoing. 

So six year rule simply doesn't come into the equation.


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## nappy7000 (14 Aug 2016)

Happy7000 

More Questions 
We had to extend the term of the mortgage and take out new decreasing life insurance  cover. Will that affect anything? Is that a new mortgage?
The new cover was taken out with the same bank at lightening speed. We walked out the door and it was set up. I was terribly annoyed with this. We asked them to wait so we could shop around. We are clueless. Should we complain?are there any avenue to reduce the term of the mortgage now. Should we complain or sit right?


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## peemac (14 Aug 2016)

It certainly wasn't a new mortgage - just a variation on the original mortgage. 

I'd say spending a couple of hours with an independent financial advisor would be well worth it for you. They will charge a fee, but the advantage is that their advice will be independent.

Plenty of options for you - if a refund is due you could use that to reduce the mortgage term, or simply increase monthly payments voluntarily.

I


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## nappy7000 (14 Aug 2016)

How would we go about finding a good advisor and how much would it cost so that we can budget for it. Would an accountant be any good in this situation?


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## roncondon (14 Aug 2016)

A phone call to Padraic Kissane won't cost you anything for some general queries.  

From being stuck in ptsb tracker case and from following different tracker threads on this site he seems most knowledgeable on all the banks and what they are up to.


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## nappy7000 (14 Aug 2016)

we will do that Ron. Many thanks for advise


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## Leighlinboy (14 Aug 2016)

Great to see someone get such a positive outcome


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## notabene (15 Aug 2016)

Delighted to see a good outcome.

No doubt you will have an opportunity for redress to come & you can look at your costs as a result of the issues with the bank

Definitely good to talk to a broker regarding your options with the mortgage & life cover - you can pay lump sums off a tracker mortgage if it suits you to do that though I'd be slow to do that myself as a tracker is the cheapest money you'll ever borrow - though the term has been extended if you are back on a tracker your interest will be substantially reduced.

If you do pay a lump sum off make sure you tell them explicitly to take it off the capital and recalculate your interest.

Presumably you might be able to look at changing your life cover back to what it was originally too?


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## nappy7000 (15 Aug 2016)

We were told that we would never be able to borrow and that the mortgage was number one.
Thank you notabene. As a result of all this we never borrow and save for a car, insurance etc.... if we can.
The negative equity is significant. I think we should start to pay down the loan and close the gap. I am afraid for the future and hate to owe money.
Can I ask why should the overpayments be taken off the capital?
What happens if I have been diagnosed with a long term illness after the second policy. Would that effect a new life insurance policy for the mortgage? Should we stay on the same policy. The repayments are one and half times more than the first policy


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## notabene (15 Aug 2016)

Because if you pay it off the capital the interest will be recalculated on the now smaller amount. Otherwise the bank will put it to interest or interest and a smaller portion of capital which does not benefit you as much. Your mortgage front loads the interest and you pay on,y small amounts of the capital. You only start to pay chunks of the capital when the mortgage is much older or if you are paying very little interest such as with a tracker. If you google a mortgage calculator, particularly one with a graph (Karl's mortgage calculator) and play with different figures you'll see this.

If you saved some of this money, for example, for a car instead of paying extra off the mortgage it would be cheaper than borrowing for a car as the interest here is far less than a car loan's would be.

Have a chat with a financial advisor, really it comes down to what suits you best & what gives you the best sleep at night particularly if you've had a tough time over the last few years.

You'll have to ask someone else about the life cover, I don't know much there except to say that I wouldn't get it from a bank. They are usually not as competitive And if there is a default on the mortgage they put the money to the mortgage while letting the insurance lapse.i would imagine a long term illness may change it but again a financial advisor can advise you better of your options here


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## corktim (1 Sep 2016)

PadKiss said:


> Hi all Aib have begun reverting affected accounts to tracker but it has to change on their system before the bank can write to you hence why the rate changes on the system.
> However the investigation is not complete so continued patience on the matter unfortunately. It will be somewhat disjointed at the beginning. I will have a support/information process established in the next week or so for all affected to fully inform each with what is happening with each lender Padraic



Hi Padraic

Any progress on above?

Tim


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