# Why was I not offered Tracker 10 years ago?



## SPUDZ

Hi, with all this talk of trackers I am wondering why I was never given the option in 2003 when mortgage was taken out with AIB. I was simply given the option of variable and fixed. I chose variable.What is the difference between variable and tracker and should I have been offered tracker.If so, is there a reason why it was not offered...ie...does it depend on deposit paid/loan to value ratio etc.


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## Brendan Burgess

I bank with AIB.

I was taking out a mortgage in Dec 2002 but they did not do trackers, so I went with Bank of Scotland. 

Then AIB phoned to say that they were just about to introduce them.  I took it out with AIB and my branch manager told me I was the first AIB customer to get a  tracker mortgage.  I don't know if that is true or not, but they were not as common then as they became during the boom.

If AIB did not have them, you could have gone to Bank of Scotland if you wanted a tracker. 

Brendan


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## NOAH

Its the old old story .  knowledge is power,  if you do not know you cant ask and those who do know wont tell.


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## SPUDZ

Thanks Brendan.Had never really heard of tracker till rates started to rise and a relative asked if I was on one....I assumed at the time they meant variable. Cie la vie!


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## Brendan Burgess

NOAH said:


> I  knowledge is power,  if you do not know you cant ask and those who do know wont tell.



Be interesting to look back at posts on Askaboutmoney (and other forums)  at that time to see if askaboutmoney users were aware of the advantages of trackers.


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## Jazz01

reminds me of the TV ads on that subject -Guy on the double decker bus standing up saying "_I don't know what a tracker mortgage is..._"


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## fobs

We took our mortgage out with First Active in October 2003 and were offered variable or fixed. On reading about trackers were going to move to BOSI but rang first active and they offered their .75% above ECB and switched our mortgage over. Did this in 2004 after our years fixed was over. It was no hassle but we had to approach them rather than the other way around. They only had started to do trackers after we got our mortgage afaik.


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## David_Dublin

We split ours into two equal halves in 2008 - half on a tracker, half on a 3 year fixed which reverted to variable. That decision is still costing me quite a lot, but when on the fixed, there was sometimes 700 euro in the difference per month between the two mortgages. How about that for a poor & costly decision!!


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## SPUDZ

hmmm...just thinking...I got my mortgage through a broker at the time..very bad form then if I was not given the option from an independant broker.I'm a bit mad now!!


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## Brendan Burgess

Hi Spudz

Not necessarily. 

What date did you take out your mortgage? 

Trackers were introduced by Bank of Scotland initially and they lent only to those with a maximum LTV of 80%

Brendan


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## SPUDZ

Can't rem exactly...bought in April so mortgage probably not drawn down till around July.LTV would have been about 85%.Sure no harm...I've done considerbly well till now by not having gone fixed at any stage


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## ANCHOR MAN

Hi Brendan, i took out my mortgage in 2005 on a standard variable and in 2006 was offered the opportunity switch to a tracker, to which i accepted. The condition they said was as we took a mortgage of over 250k out. It was never implemented though, do you think i have a case?


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## Condon

NOAH said:


> Its the old old story .  knowledge is power,  if you do not know you cant ask and those who do know wont tell.



Hi Noah.  I have very, very basic financial knowledge. But I did know all about trackers back in 2002.  How?  They were advertised left, right and center on radio interviews with financial people - like Morning Ireland etc; in newspaper reviews - like 'Best Buys', Charlies Weston, Dan White, Sunday Business Post, Sunday Independent etc; and by the banks that were really marketing them, particularly UB and NIB.  Initially we went with UB at .85% and then switched to NIB at .45% as they became the cheapest on the market.  When I was looking up the rates I saw the AIB Tracker rate and made an appt. at the Crumlin branch (close to The UB and NIB Walkinstown branches) to get a quote.  When I got there with my printed quotes from the other lenders, I took my seat in front of X's desk, with a sign that read 'XY - Mortgage Advisor'.  She already had my figures and had pre-prepared quotes.  But no tracker one.  When I asked had she got that one please, the reply was (quote), "If I knew you were going to ask me that I would have read up on it". I had asked, on the phone, for the _cheapest_ option.

Regarding not telling, I told EVERYONE.  For years.  Where I work there are around 80 people, all of whom had mortgages or were going to have one in the not so distant future.  Of those 1 (one) switched to a tracker after several years, and 0 (zero) of 1st time buyers took this option.  Of the one, this person stayed with ICS at .9% and when I asked why he didn't just go to NIB, he said he couldn't be bothered.  Of outside work friends, 1 (one) switched, again after a period of time.  The latter bring me/us to dinner once a year as a 'thank you'.  I couldn't have tried any harder for people to keep their hard earned money.  Total ambivalence.


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## Manuel

Is there any way of knowing, or estimating, the spread of tracker rates out there, i.e. ECB + 0.5, 0.9, 1.4% etc?

Just curious. I like to beat myself up regularly about being on an SVR so I'm curious to know even what the average tracker rate out there is that I could have been on ....


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## peteb

Nope.  Depends on bank, LTV, etc.  No point in dwelling on what you dont have.


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## briste

fobs said:


> We took our mortgage out with First Active in October 2003 and were offered variable or fixed. On reading about trackers were going to move to BOSI but rang first active and they offered their .75% above ECB and switched our mortgage over. Did this in 2004 after our years fixed was over. It was no hassle but we had to approach them rather than the other way around. They only had started to do trackers after we got our mortgage afaik.



We took out ours with FA in 2005 and were refused a tracker as we were 100%.

We went fixed for the first 3 years and were put onto a tracker when we came off it.


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## AlbacoreA

A lot of people didn't know about trackers, and some even advised against them at the time. It wasn't as clear cut as it is now. For many of the people I knew, their families and friends had little experience of mortgages, or if was from their parents it was from a different era.


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## lucozade

I'd a joint mortgage with the sis and it was originally with UB two year fixed. It was a 100% mortgage. When that finished around '06 I revalued the house and the 100% mortgage had turned to a 75% mortgage with the price increases. I priced around the tracker with NIB was a no brainier. It was something like .28% over the ECB. So I thought I'd have a bit of that. The sister has thanked me ever since...


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## Tebbit

well I suppose  I feel like a fool now but when I took out my mortgage in 2006 I really feel looking back that I hardly knew what I was doing. I'm stuck now on what I think is going to be a very expensive mortgage as the SVR rates are  going up. I think the day will come when I won't be able to keep paying. Is there any way now at all of getting a better deal on your mortgage???


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## Manuel

lucozade said:


> I'd a joint mortgage with the sis and it was originally with UB two year fixed. It was a 100% mortgage. When that finished around '06 I revalued the house and the 100% mortgage had turned to a 75% mortgage with the price increases. I priced around the tracker with NIB was a no brainier. It was *something like .28% over the ECB*. So I thought I'd have a bit of that. The sister has thanked me ever since...



How could you not know 7 years into your mortgage what your rate is?


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## Bronte

Brendan Burgess said:


> Be interesting to look back at posts on Askaboutmoney (and other forums) at that time to see if askaboutmoney users were aware of the advantages of trackers.


 
I was not aware of how valuable a tracker was.  But I most certainly do now.


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## lucozade

Fair question. But I've had it six years now and I know I'm not going to get better so I don't really recall the exact rate. But just for you Manuel I looked it up and it's .57 over the ECB rate. So a little more than I thought but I won't complain.


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## serotoninsid

I can thank AAM for helping me in arriving at the cheapest rate available at the time of getting my initial mortgage (UB/ecb+1.05%) in 04/05 and re-mortgage in 06 (NIB/ecb+0.59%).  
If it wasn't for the info posted ref. trackers on aam, most likely I would have missed out (initial mortgage preceeded the 'I don't know what a tracker mortgage is' ad campaign)




Condon said:


> Regarding not telling, I told EVERYONE.  For years.  Where I work there are around 80 people, all of whom had mortgages or were going to have one in the not so distant future.  Of those 1 (one) switched to a tracker after several years, and 0 (zero) of 1st time buyers took this option.  Of the one, this person stayed with ICS at .9% and when I asked why he didn't just go to NIB, he said he couldn't be bothered.  Of outside work friends, 1 (one) switched, again after a period of time.  The latter bring me/us to dinner once a year as a 'thank you'.  I couldn't have tried any harder for people to keep their hard earned money.  Total ambivalence.


Same experience - told plenty  - don't know anyone that acted. One guy said that "I know what your saying but I like my local bank manager/staff".  Does he still like his local bank staff (assuming they even still have jobs with that bank)?  Have not seen him since to ask.


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