# What happened August 9 2008?why is it important?



## Joannmct (6 Aug 2015)

in 2012 when I got a letter explaining how they came up with the tracker rate of 3.25% it said "tracker products were amended from 9 August 2008 not take into account balance outstanding or loan to value."

21/11/06 My contract says " on expiry of the fixed rate period..the interest rate applicable to the loan will be the tracker mortgage rate appropriate to the balance outstanding on the loan at the date of the expiry of the fixed rate period". 

How can this change? What relevance has this? Maybe it has none. I don't know. I'm going over and over correspondence and I'm being twisted in circles. Can anyone clarify what this means?


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## emeralds (7 Aug 2015)

on 9th July 2008 the ECB rate dropped .5% from 4.25% to 3.75%. We got a letter from our lender (B of I) approximately 2 to 3 weeks after the rate change which told us our new tracker rate. Is that relevant maybe? 
What was your tracker rate when you took out your mortgage?


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## Highchair (7 Aug 2015)

Hi joannmct,
This sounds kind of significant to me? It sounds like they changed the terms and conditions of your mortgage. They said they'd calculate your rate one way, which is what you signed for, and then they changed their mind and plucked a rate out of thin air instead. I wonder are they legally allowed to do that? I'd say it'd be worth getting legal advice on that.


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## random2011 (7 Aug 2015)

Joannmct said:


> in 2012 when I got a letter explaining how they came up with the tracker rate of 3.25% it said "tracker products were amended from 9 August 2008 not take into account balance outstanding or loan to value."
> 
> 21/11/06 My contract says " on expiry of the fixed rate period..the interest rate applicable to the loan will be the tracker mortgage rate appropriate to the balance outstanding on the loan at the date of the expiry of the fixed rate period".
> 
> How can this change? What relevance has this? Maybe it has none. I don't know. I'm going over and over correspondence and I'm being twisted in circles. Can anyone clarify what this means?



Can you post a copy of the letter. I am in the same position but cannot remember getting any letter. The Bank went ahead and offered me 3.25% margin over ECB and we selected their SVR in 2009 as it was lower than the tracker rate if only for a very short time. This seems pretty clear cut as you signed a contract outlining the conditions yet the bank broke those by changing them to their own advantage.


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## Joannmct (7 Aug 2015)

They wrote that because I kept questioning where they got 3.25 from. My contract has no specific rate on it. My mortgage quotation has tracker of 1.1% on it but I presume this doesn't count? I'll try to post the letter later. It also explains how they calculated my overcharge- very different to now as they charged me for last year of fixed rate at higher rate instead of svr then tracker.


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## emeralds (7 Aug 2015)

When you started on the tracker on 21/11/06 what rate was applied then? Did you sign up to a tracker of 1.1%?


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## Joannmct (7 Aug 2015)

No I fixed for 3 years instead


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