# Opted for SVR instead of tracker in 06 -silly I know



## Fedupwtbs (24 Sep 2012)

Hi everyone

New to the site...

Took out my mortgage in 2006 and fixed for 3 years.

When the 3 years expired I recieved my options which were very high fixed rates, an SVR of 3.69 and a tracker of ECB +3.0

I opted for the SVR (I know..madness but I did not fully understand the consequences. Even my broker at the time advised to go with the SVR)

I don't have my original loan offer letter but might call PTSB and get this to check if it specified a tracker rate which I assume if it did would be less than ecb + 3

I've read on this site people referring to the banks not stating the difference between choosing an SVR over a tracker in terms of long term cost. basically not providing any advice.

Clutching at straws but would like to know if it is impossible or not to argue for getting the tracker re-instated.

Thanks for reading...

Ps...sorry I didn't find this site in 2009 when I would have had the advise needed and choosen the tracker


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## Fedupwtbs (25 Sep 2012)

Currently on 4.34 thanks to the efforts of people like Brendan and other AAM PTSB SVR customers.

You are correct. I was never on a tracker but was offered one at the end of my initial fixed rate. However at ECB +3 and just before the SVR hikes opted against the tracker. Regardless of SVR rates this tracker was never going to be chosen.


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## corklad (25 Sep 2012)

Fedupwtbs said:


> Currently on 4.34 thanks to the efforts of people like Brendan and other AAM PTSB SVR customers.
> 
> You are correct. I was never on a tracker but was offered one at the end of my initial fixed rate. However at ECB +3 and just before the SVR hikes opted against the tracker. Regardless of SVR rates this tracker was never going to be chosen.




That sucks man. I was in a similar boat, having taken out a 3 year fixed in 2007 rather than taking a tracker. (broker said the rates would only go one way (up) if they were going to move  )

But in 2010 the options I was given included a SVR of 4.15% SVR or a 4.25% (ECB + 3.25%) tracker. Awful options but I went with a tracker. The mortgage agreement only said I had to be offered a tracker, but didn't specify what rate it would be - the same situation I guess you were in?


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## corklad (25 Sep 2012)

Brendan Burgess said:


> Hi OP
> 
> This does not seem to be correct.
> 
> ...



Brendan, this is the fixed agreement letter I got in early 2007:

http://www.askaboutmoney.com/showpost.php?p=1224384&postcount=42


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## Fedupwtbs (27 Sep 2012)

Got the loan letter.

Exactly the same as yours corklad.

So it looks like the 2 year fixed would have got the ecb + 1 but the 3 year fixed was left for PTSB to decide.

Anyway just have to get on with it.thanks to everyone for their responses.


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## mouse1 (27 Sep 2012)

I did something similar, but I felt I was purposely misled by the information (or lack of it) provided, and took it to the Ombudsman - but they backed PTSB and I am still in the SVR. I wish they hadn't approached me with an options letter because I would have defaulted onto a tracker!


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## Fedupwtbs (29 Sep 2012)

That is unfortunate mouse1. Wonder how many more were led like this. Thanks for the ombudsman info, no point on taking it in that direction then either I suppose.what annoys me is my broker got my friend who is my Neighbor a tracker and he bought in September 06. And advised me to go fixed. We've paid approx 80k in repayments and only 20k has come off the mortgage. The negative equity situation is an additional kick in the teeth.

Another thing That frustrates me is there's talk of possible debt write down for those who are in arrears. What about those who continue to pay albeit struggling. There's no talk of writing there loans down now we know the true value of a property.


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## Brendan Burgess (20 Nov 2012)

When you fixed, the letter made it clear that you would be entitled to a tracker at the prevailing rate.  The margin was not guaranteed.  In retrospect, it was a poor choice to give up a cheap tracker for a tracker with an unspecified rate. 

When the fixed term expired, you were offered a choice of a SVR or a more expensive tracker. That was a difficult choice, but again it was your choice. 

I really don't see any issue here, unless 

The Central Bank decides that it was ptsb's policy to deliberately get people off cheap trackers into trackers of an unspecified rate.  If they sent you an options letter, you have little complaint. If a "mortgage advisor" advised or persuaded you to fix, then you may have a case.


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## Fedupwtbs (20 Nov 2012)

Brendan Burgess said:


> When you fixed, the letter made it clear that you would be entitled to a tracker at the prevailing rate.  The margin was not guaranteed.  In retrospect, it was a poor choice to give up a cheap tracker for a tracker with an unspecified rate.
> 
> When the fixed term expired, you were offered a choice of a SVR or a more expensive tracker. That was a difficult choice, but again it was your choice.
> 
> ...



Back in 2006 we did not know what a tracker was. We were advised that we were going on a fixed rate from the beginning. In 2009 same broker advised to take SVR over a tracker as it was at the time 3.79 and cheaper than the tracker of ECB + 3. If the tracker was ECB + 1 we would have selected the tracker but the tracker was more expensive. Within a few months the SVR was rising and the ECB was reducing. PRSB increased the rate by 1% soon after.


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