# Tracker Mortgage with AIB: Can they change it?



## duchalla (2 Mar 2010)

Hi,

I think I know the answer to this question, but need confirmation for my own peace of mind!  We've a tracker mortgage with AIB .75% above ECB.  AIB have anounced that they are raising rates on all mortgages, Can they raise our tracker mortgage rate or is it just subject to ECB rate rises?


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## homerjay (2 Mar 2010)

*Re: Tracker Mortgage with AIB*

I dont know what a Tracker Mortgage is springs to mind 

AIB cant raise the rate of your mortgage as it is linked to any rise/fall in the ECB rate. 

If you have any other variable rate loans from AIB these will rise

If you have a fixed rate loan from them these wont rise


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## duchalla (2 Mar 2010)

*Re: Tracker Mortgage with AIB*



homerjay said:


> I dont know what a Tracker Mortgage is springs to mind
> 
> expected someone to come back with that line! Cheers anyway....


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## chrisboy (2 Mar 2010)

*Re: Tracker Mortgage with AIB*

Did Aib announce they were raising mortgage rates?


on breaking news now..


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## Vincenzo (2 Mar 2010)

*Re: Tracker Mortgage with AIB*

Yeah they said they are not financially in trouble but paying more for deposit accounts than they charge for loans is not sustainable.

They take in one hand . i.e bail out

and slap you in the face with the other hand .


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## househunter! (2 Mar 2010)

hi vincenzo 

as you said they took the bail out so the tax payer now has a stake in the company and it is in the tax payers interest to have them operate as a company and that means making a profit !


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## jhegarty (2 Mar 2010)

househunter! said:


> hi vincenzo
> 
> as you said they took the bail out so the tax payer now has a stake in the company and it is in the tax payers interest to have them operate as a company and that means making a profit !



Well put.


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## chrisboy (2 Mar 2010)

househunter! said:


> hi vincenzo
> 
> as you said they took the bail out so the tax payer now has a stake in the company and it is in the tax payers interest to have them operate as a company and that means making a profit !




Yep thats true, they took my tax and got bailed out, and now i've to pay extra in my mortgage repayments to pay for the bailout i already paid them.


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## DerKaiser (3 Mar 2010)

chrisboy said:


> Yep thats true, they took my tax and got bailed out, and now i've to pay extra in my mortgage repayments to pay for the bailout i already paid them.


 
Whilst taxpayers and mortgageholders are significantly overlapping groups, it is probably in the taxpayers interest for bailouts to be repaid back to the taxpayer via profits rather than to the mortgageholder via low interest margins


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## rustbucket (3 Mar 2010)

DerKaiser said:


> Whilst taxpayers and mortgageholders are significantly overlapping groups, it is probably in the taxpayers interest for bailouts to be repaid back to the taxpayer via profits rather than to the mortgageholder via low interest margins


 
Maybe im stupid but how exactly will it ever benefit the taxpayer or be in the taxpayers interest? Can we honestly expect to see any repayment to the taxpayer? I dont think so

The best we can hope for is that the bank will eventually repay the government (which I understand they are doing by issuing and raising bonds). By which time the government will have made some other chatastrophic error in judgement or waste of money.

In my opinion it was throwing bad money after bad. Cant see how the taxpayer will ever benefit


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## DerKaiser (4 Mar 2010)

Any future repayments from the banks can go towards public spending which would otherwise need to come from the taxpayer.

Though, as you say, there will be no payback if the state wastes this money foolishly.


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## RMCF (4 Mar 2010)

This thread went off on a bit of a tangent, but did we get a final definite answer?

I too have a tracker mortgage with the AIB and was wondering if I will be affected. I was thinking not, since my small print is "0.xx% above the ECB base rate" - so if the ECB rate remains unchanged then so should my own rate.

Yes? No?


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## so-crates (4 Mar 2010)

According to the loan agreement they made you sign they can't. Would be a strange day in Dodge City if they unilaterally reneged on the terms and conditions of performant loans  I wonder would that give people a get-out-of-jail free card!!


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## Bronte (5 Mar 2010)

They can't change your tracker rates.  You have a contract for same.  This doesn't mean that right now they are not working on ways to force people off trackers, with carrots and sticks, mist and fog.  Here on AAM we've had examples of banks trying to hoodwink people on home loan mortgage rates on investment property onto investment rates contrary to their original contracts.  

Check your contract and see what it says.


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