# Excuse my ignorance but what type of mortgage do I have ?



## Joanne Heeney (30 Oct 2017)

Offer of advance 
Apr 3.1 %
Interest Rate 3.05 %
It states as follows in special conditions 
The rate of this flexible mortgage tracks the ECB rate with a margin which is fixed for the life of the home loan term. The margin is ECB rate plus 1.05 % .


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## vandriver (30 Oct 2017)

It's a tracker.


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## Sarenco (30 Oct 2017)

There's something not right here - ECB+1.05% is currently 1.05%, not 3.05%.


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## Joanne Heeney (30 Oct 2017)

Thanks guys, yes it is written in print in special conditions . The margin for this home loan is ECB rate plus 1.05 ?


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## Joanne Heeney (30 Oct 2017)

Loan was taken out in 2004 for 500 k . We were deemed as impacted but didn't realise we were on a tracker rate. We had to make an alternative repayment arrangement with them when we were struggling to pay full repayment of 2,650 pm and got a lower interest rate of 2.75 for five years and this is due to run out next year. This has now been moved to 1% .  I haven't a clue how to work out how much we are due in compensation but would love to get an idea how much we would be due.  It looks like we were  over paying €600 a month for 9 years and then the lower rate of 2.75 for the last 4 years but the mortgage hasn't come down much in those 4 years as we seem to have charges of forbearance ? And interest rate


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## Banking17 (30 Oct 2017)

Which Bank


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## Brendan Burgess (30 Oct 2017)

It would be very difficult to work out the amount you overpaid based on the information you provided. 

But here is a *very *rough guide 

1) tracker rates and SVRs were about the same early on. 
2)They started differing from each other in about 2008 
3) So it looks like you have had 4 years at a difference of 1.75%
4) Prior to that, the difference probably averaged 1.75% as well. 
5) The difference would be about €500 a month in repayments a month on €500k 
6) So, that would be €6,000 a year
7) So, over 8 years that would be about €48,000 

Brendan


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## SaySomething (30 Oct 2017)

It’s Ulster Bank. I know from the wording & the margin. 
There’s no simple way to calculate the overcharge here. 
I worked mine out with side-by-side loan amortization spreadsheets based upon the amount I paid on the old and new interest rates. 

You’ll need a full mortgage statement to work that out dating back to the day you took out the mortgage. They send you one annually anyway so gather them up. 

If, like me, your underpaid interest was automatically rolled onto your capital, this was normal for Ulster Bank customers, there’s a significant chance you could have (a) exited your arrangement sooner (b) not been in an arrangement at all.


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## Brendan Burgess (30 Oct 2017)

SaySomething said:


> If, like me, your underpaid interest was automatically rolled onto your capital, this was normal for Ulster Bank customers



This was normal for Ulster Bank customers and for every customer of every bank in the World.  That is how banking works. 

The closing capital today = Opening capital + interest - repayments. 

Brendan


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## Joanne Heeney (30 Oct 2017)

Yes Ulster Bank. Thank you. When I went into an arrangement for five years I was told that if I stuck to our payments each month and didn't miss one we would not have to pay the unpaid amount that it would be written off. Obviously I see now that that 's not the case. So our mortgage really hasn't come down much In the last four years even though our reduced payments were 1800 and now with the correct figure in place it should be  2043 pm. We have no arrears.


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## Joanne Heeney (30 Oct 2017)

The five years are up next August so I presume we should exit now ? Also we were 9 years before we 're arranged the mortgage. Thanks . Who should I go to for independent advice ?  I had no clue we were on a tracker and hadn't looked at my paperwork until we got our letter in January. Even at that I didn't realise it was a tracker. Never paid attention to these things. You assume the best practice is being adhered to by the banks. I'm very annoyed that we have not reduced our mortgage over the past four years by much. It's still around 400,000. Absolutely would not have needed to go into an arrangement if we were paying 2043 per month. This was more manageable then 2065 pm. Should this be taking this into account when looking at compensation?


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## Joanne Heeney (30 Oct 2017)

Also we overpaid for the past four years , should we receive 6000 per year for that also ?


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## Joanne Heeney (30 Oct 2017)

*2650 pm


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## Joanne Heeney (1 Nov 2017)

Any advice on the above thanks


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