# Bought out ex, tracker redress question



## Sionnachy (16 Aug 2017)

I bought out my ex in 2015 and EBS originally agreed to let me keep the tracker when I spoke to them about taking over the house and getting a new mortgage in my own name. When I had all my ducks in a row (just a few months later), I went back to make a formal mortgage application in my own name. EBS then told me I couldn't keep tracker, I had to move to a tracker mover (tracker rate plus 1%). I was really disappointed at this but I couldn't go on living with my ex any longer (we cohabited for 5 years following the break-up) so I accepted the tracker mover rate. Then EBS told me that my ex was entitled to take his half of the tracker with him if he wanted to buy a house (he would be subject to the extra 1% on the tracker mover too). So essentially I ended up with a split mortgage - part at tracker mover rate and part at SVR.

After a very stressful year of trying to get everything sorted with solicitors I finally took over the house in my own name. Then EBS wrote to me to say that I was part of the redress review and they were reinstating the tracker mover rate to the original tracker rate. If they are telling me that they should not have given me the tracker mover product, should they not have reinstated the full tracker to me? I was originally told that I was entitled to keep the tracker as I was the one buying out my ex and remaining in the house. When I spoke to the branch first there was no such thing as a tracker mover and all of a sudden this new product appeared (which was designed for people in negative equity to allow them to move house). We were in positive equity when I inquired about the possibility of buying my ex out. I had to pay a significant lump sum off the balance of the mortgage to bring the balance down to what I could afford to borrow.

I would appreciate your thoughts on whether or not EBS should have reinstated the full tracker to me. Thanks


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## Brendan Burgess (16 Aug 2017)

This is about as complicated as it can get. 

First of all, AIB were under no obligation to allow your ex off the mortgage.  They did so because you were able to pay off a lump of cash and then you could afford the remaining mortgage on your own.

Likewise, they were under no obligation to offer you anything other than a standard mortgage to replace the old one.

There really is no basis for AIB restoring the tracker to people in situations like this.  Fair play to them for doing so. I doubt if the other lenders will be doing so.

When a couple split up and want to move their tracker to new properties, AIB allows each of them to move half the amount.

So that seems to be the approach that they have taken here.

Has your ex. used "his half" of the tracker?  Does he intend to do so? If so, then I don't think that AIB should have to provide you both with tracker mortgages.

If your ex. waives his "claim" on a transfer, then I think it would be logical, although very generous, for AIB to give you the full tracker at the original rate.

Has AIB sent you their redress letter yet?


Brendan


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## Wardy7 (16 Aug 2017)

EBS Brendan


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## Sionnachy (16 Aug 2017)

Thanks for your reply Brendan. I understand that they were not obliged to do any of this however it was their policy at the time I first enquired to allow the person remaining in the home in a buy-out situation to retain the tracker (according to the branch I dealt with). Their policy apparently changed a month later when a new product appeared (the tracker mover). I received my redress letter which tells me that I was incorrectly put on the tracker mover rate. This reads to me that I shouldn't have been put on a tracker mover product at all. Granted if both of us were selling up and buying elsewhere the tracker mover should have applied to us both but that was not the case. In June 2015 the policy was to allow the person keeping on the house to retain the full tracker amount. In July 2015 their policy obviously changed and now they are telling me my case was incorrectly handled in the redress letter.

Very complicated indeed!


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## Brendan Burgess (16 Aug 2017)

OK, so you have got a redress letter.

How, exactly, have they proposed to rectify the situation?

Brendan


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## Sionnachy (16 Aug 2017)

I had a split mortgage after the buy-out, one part on tracker plus 1% and the other part on SVR. They have put the tracker mover portion back to the original tracker rate but the SVR portion remains the same.


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## Brendan Burgess (16 Aug 2017)

Has you ex "used" the other half of the tracker? 

Has AIB told him that he can? 

Brendan


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## Sionnachy (16 Aug 2017)

He has taken his half of the tracker to buy a house.


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## Sionnachy (16 Aug 2017)

https://www.askaboutmoney.com/threa...ers-who-changed-names-on-the-mortgage.201650/

Would the situation outlined in the thread above not be similar to my case?


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## Brendan Burgess (17 Aug 2017)

Sionnachy said:


> He has taken his half of the tracker to buy a house.



Then you have no legal or moral right to the full amount at tracker rates.

It would have been very helpful if you had told us this at the start of the thread or when you were first asked.

Brendan


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## Sionnachy (17 Aug 2017)

Thanks for your response Brendan and apologies for not making that point clear from the start. I understand that I don't have any right to reinstatement of the full tracker. I created this thread hoping that someone else may have been in a situation similar to mine. I know my situation is very different to the majority of people appealing but I wouldn't think I am completely unique. I read the thread you posted previously about couples that took a person off the mortgage when they split up and are now being given back their trackers in the tracker redress process and this gave me some hope that I could possibly use those cases as precedent for my appeal. I know I am very lucky to be in a position to retain even some of the tracker when others have lost properties or have been overcharged tens of thousands on their mortgage over the years. My heart goes out to anyone in that position. 

I know exactly what I signed up to when I took out the mortgage in the first place but there are ways and means that banks deal with separating couples. I had set up a meeting with the branch as my ex wouldn't agree to selling up and going our separate ways, nor did he want me to buy him out. He wasn't in a position financially to buy me out either and he was happy to leave things be for the foreseeable future (we had been split up and living under the same roof for 5 years at this stage and it was becoming unbearable so I had to do something). I was at my wits end so I approached EBS to see what my options were.

The local branch were very sympathetic in fairness to them and told me there were 2 options - one of us buy the other out or sell up and go our separate ways. They explained what I would need to do to buy him out. I was told at this stage that if I was buying him out and remaining in the house that I would keep the full tracker. This was the policy at that time for dealing with buy-out situations. I know a lot of banks did not allow this as they wanted people off trackers but that is what the local branch told me the policy was when I first inquired.

The issue of my ex taking his half of the tracker with him only arose when I went back to make the formal application. They changed their policy to say that a couple in a buy-out situation had to take up a tracker mover product - splitting the tracker between the separating couple was a condition of the tracker mover product, not a condition of their previous policy for treating a buy-out situation. 

Since receiving my redress letter I spoke with a Financial Advisor who has been dealing with many tracker redress cases and he believes that I do have a case for appeal. He said I should appeal based on the fact that EBS told me I could retain the full tracker and then they reneged on this (albeit verbal) agreement. I don't have anything in writing from EBS formally agreeing to this but I did keep notes of two meetings I had with the local branch. I also have emails back and forth with the branch where I queried why they were reneging on what was originally agreed and they state that things have changed since the tracker mover product came into effect. I guess I'm trying to weigh up whether I go down the appeals route and face more stress or just accept what they have offered me. My health has suffered in the past few years with this whole situation and I don't know if I have the energy to go down the appeal route if there is a chance that it will be all futile. I would be reluctant to take an appeal forward unless I have a strong case.

I appreciate your advice Brendan and thanks for taking the time to reply. If you can shed any light on the other buy-out cases that have been successfully appealed through the redress process it would be greatly appreciated.


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## Brendan Burgess (17 Aug 2017)

I would look at this from the principle of fairness. 

AIB were under no obligation whatsoever to facilitate you taking over the mortgage. 
They could have plain refused and told you to stay together or for you to buy him out with a new mortgage at market rates. 
They facilitated you. Fair play to them for doing so.

They are under no obligation now to put you back on the tracker, but they are doing so. 

Now you want both you and your ex to go from a tracker of say €200k between you to a tracker each of €200k? 

I really think you are going way too far. 

Brendan


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## Sionnachy (17 Aug 2017)

I don't want them to give both of us the full tracker amount each, I would like to see them reinstate the tracker to the person who was supposed to be keeping it (as per their policy, not their obligation). If they can contact me to say they've made a mistake and they're rectifying it I'm sure they can do the same with my ex partner and put him onto the SVR, which is what he should be on had EBS not made the mistake. 

I take your point but EBS have put their hands up to say they made the mistake, I am merely saying if they hadn't made this mistake I would have retained the tracker and my ex partner would have been offered SVR if he was to take out a new mortgage with them. I don't want to argue with you, I'm just trying to explain how this is seen from a customer's point of view.


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