# Getting UB tracker rate back, but only from end of fixed rate?



## julianato (6 Feb 2017)

Firstly, thank you to everyone who has contributed to this area of the forum and particularly Brendan, on some enlightening reading and informative discussion.

We received a welcome letter from Ulster Bank this morning stating that they are moving our 2 mortgage accounts from SVR 4.3% to a Tracker Rate of 0.85% which is of course good news.

Back in 2006 we moved from a SVR mortgage to a 5 year fixed rate mortgage of 5% from 2006-2011, reverting to 4.95% SVR rate in 2011 to the present day. At the time of choosing the fixed rate I was never offered a tracker rate and felt best to lock in and secure our monthly payments for 5 years.

I understand that we should be due a refund on our SVR from 2011 to present but my question, and apologies if it has been answered elsewhere (I couldn't find any advice from searching) is should we also be due a refund for the 5 years at 5% fixed rate, when in theory, we should have been on a much lower tracker rate?

Any advice would be much appreciated thank you


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## Brendan Burgess (6 Feb 2017)

Has the letter told you what date you are getting the tracker back from? 
Has it told you why you are getting it back? 

In 2006, the ECB rate was around 3% , so the tracker rate would have been 3.85%. I suspect that the UB SVR was about the same. 

So even had you been on the tracker back then, you probably would have fixed. 

However, I suspect that the reason you are getting your tracker back, is because you were entitled to be offered a tracker when the fixed rate ended.  If so, that would be the appropriate start date for the refund. 

Brendan


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## julianato (6 Feb 2017)

Hi Brendan. 

The letter is pretty vague. No reason why we are getting it or when we should have been offered it, I guess in March and July we might get more info.

I hadn't realised that the trackers were that high around 2006-2011, I guess I thought they were all around the 1% mark, but stand corrected.

You are probably right, that any calculations they make will probably look at it from 2011 onwards (is there any way to find historic tracker rates from 2011-2017?) in terms of redress.

I imagine the banks will want to save themselves a few quid so all redress will lean more towards their calculations than ours.

Thx for the info.


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## Brendan Burgess (6 Feb 2017)

The ECB rate is here: 

http://www.askaboutmoney.com/threads/ecb-rate-history.170973/

Just add the margin to find out what you should have been on. 

Brendan


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## redcatstar (7 Feb 2017)

Why only from the end of fixed rate I stayed fixed cause I couldn't get tracker back that seems unfair


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## julianato (7 Feb 2017)

Thanks Brendan. 



redcatstar said:


> Why only from the end of fixed rate I stayed fixed cause I couldn't get tracker back that seems unfair



I totally agree with you redcatstar, people made vital decisions on their mortgages (and life decisions) based on the fact that they weren't offered the tracker rates or felt they couldn't avail of them. I know that if the tracker was available to me in 2006 I probably would have chosen it and we would have spent less on our mortgage. I'm going to wait to see what the next response from UB is in March and follow it up then.

In the meantime I'm gonna get on to them as their calculations on the reduction on our monthly mortgage payments now, due to moving to tracker rate, don't seem to add up, we should be paying less, unless our TRS has suddenly run out!

I guess the redress and debate on the "what if the tracker rate had been available" situations may perhaps move into a legal or professional advice arena with UB in these circumstances, to qualify how badly people were affected and lost out. I can see this whole scenario escalating.


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## Brendan Burgess (7 Feb 2017)

julianato said:


> I know that if the tracker was available to me in 2006 I probably would have chosen it and we would have spent less on our mortgage.



Eh, a tracker was available to you in 2006. All the lenders were doing trackers then as far as I know. 

So if you wanted a tracker, you could have had one either from UB or through switching to another lender. 

But you were on an SVR back in 2006. That seems odd. Are you sure you were not on a tracker, but just didn't know it? 

I am guessing that you chose to fix although you were on a tracker. 

Alternatively, you were on an SVR and had no legal right to a tracker. But by fixing,  you got a right to a tracker. 

Brendan


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## julianato (7 Feb 2017)

Yeah, I should have worded that differently, "I know that if a tracker was _offered _to me in 2006".

I was on a SVR before I fixed, don't remember ever being offered any tracker rates or any mention of them when I fixed in 2006.


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## Brendan Burgess (7 Feb 2017)

Hi Julian 

It's important to realise that they were not under any obligation to offer you a tracker in 2006. 

You were on an SVR. Most people who were on SVRs could have asked their banks to change them to trackers. Most people didn't bother. 

So you just thought about fixing.  You didn't think "These tracker rates are ridiculously cheap so I should lock one in now." 

Brendan


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## Tedtalk (7 Feb 2017)

Hi Brendan, 

You raise an interesting point in your 2nd last post above. You mention "but by fixing you got a right to a tracker". Not to go off the point - do you think this has happened in many cases?


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## julianato (7 Feb 2017)

Hi Brendan

I'd say in July 2006, when we fixed, the tracker rates weren't too far off the SVR rates (I fixed for 5 years at 5.1% APR) so probably didn't consider the trackers, and then saw them plummeting a couple of years on and regretted it!


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## Brendan Burgess (7 Feb 2017)

Tedtalk said:


> Hi Brendan,
> 
> You raise an interesting point in your 2nd last post above. You mention "but by fixing you got a right to a tracker". Not to go off the point - do you think this has happened in many cases?



We are guessing at the reason for Julian's receipt of a tracker which he never had before. 

I am just guessing that the process of fixing may have given him a right. It's purely a guess. 

I would also guess that he may be mistaken in his memory and that he was on a tracker and not an SVR when he fixed. 

Because I had not heard of other SVRs developing a right to a tracker through fixing. 

Brendan


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## Tedtalk (7 Feb 2017)

Thanks Brendan.

Maybe someday after the Central Bank review, the CB will be able to summarise the variety of scenarios encountered in the examination and the duty of the banks within these scenarios.


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## Tedtalk (7 Feb 2017)

Did anyone hear Vincent Wall on newstalk at 6.10, enforcement and potential criminal investigation mentioned but nothing on CB website, maybe I was hearing things??


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