# Converted from Self-Build Loan to Mortgage in Oct 08 but Tracker offer pulled



## newinvest (9 Aug 2020)

I undertook a self build in 2008. Correspondence from AIB stated that once the build was complete in October the loan would be converted to a mortgage
with a tracker. When the built was complete in Oct 08 and the  loan was converted to a mortgage, the tracker was no longer available.

My mortgage contract has clause 3.2 in it, I received the €1,615 compensation and to my knowledge I am part of the 5,900 cohort. I moved
bank last year so I haven't received anything yet from AIB.

My question is - do I have a case for a restoration of a tracker? I undertook the build on the basis that I would receive a tracker.  It felt like
AIB pulled the rug from under me when the build was complete. The difference in rates drove me into arrears for a period and I struggled financially.
I'm not sure I would have undertaken the build if I had off known I was not able to get a tracker. I feel like the home loan and mortgage are intrinsically
linked and the terms of the home loan should have been honoured once converted to the mortgage.


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## Brendan Burgess (9 Aug 2020)

newinvest said:


> Correspondence from AIB stated that once the build was complete in October the loan would be converted to a mortgage
> with a tracker.



Can you be more specific about this. 
What was the nature of the correspondence? Was it an informal email? Was if a formal contract? 

Do you still have the correspondence? 

What were the exact words? 

What happened in October 2008?  Did you ask for a tracker then?  

If they refused, did you complain? 

Brendan


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## newinvest (9 Aug 2020)

Hi Brendan,

The initial correspondence was over email and phone in April 2008, when AIB agreed in principal to sanction the prime rate loan. 
I have attached the relevant part of the email. I will need to contact my solicitor to see if they have any further information
on the loan.

The house was completed by Oct 08, and on the 24th Oct the Letter of Offer was issued for 'a supplemental mortgage loan'
with a variable rate. I asked about the tracker and was verbally informed that a tracker was at that point no longer available, 
and naively I just accepted that, grateful to have a home.

The Letter of Offer was signed in Dec 08, and the 'new' mortgage, which replaced the loan commenced on the 24/01/09. I 
have been paying this mortgage up to 2019, when I remortgaged with a different bank.

At one stage I fell into arrears, and more recently I asked for a payment break for 6 months due to a serious cancer diagnosis 
I received. They rejected the payment break, which was a significant source of stress.


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## Brendan Burgess (9 Aug 2020)

That looks pretty clear to me 





Did you show this email to AIB? 

I would be surprised if they fought this. 

Brendan


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## newinvest (9 Aug 2020)

I contacted them, and received the reply below. I resigned myself to their reply, but in light of the ruling
by the Ombudsman I'm having second thoughts. The compensation they are referring to is the €1,615.


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## Brendan Burgess (9 Aug 2020)

Absolutely, you should have taken this to the Independent Appeals Panel. 

But it's not too late.  Make a formal complaint now to the Ombudsman. 

Brendan


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## newinvest (9 Aug 2020)

Thanks Brendan,

At the time I had hoped to take it to the Independent Appeals Panel, but I was in hospital undergoing
treatment and just couldn't summon the strength.

Last question - since I expect to hear back as part of the bigger cohort this month, should I hold off
and then go to the Ombudsman ?


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## Brendan Burgess (9 Aug 2020)

Yes. 

Under the Central Bank scheme, AIB was not allowed to deal with the borrowers.  They had to go through the Appeals Panel. 

Under this scheme, they can deal with you. So you should restate your claim for a full tracker. 

They will refuse and you can go to the Ombudsman.

Brendan


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## newinvest (9 Aug 2020)

Thanks Brendan, I will follow this path and will let you know how I get on.


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