# Should I break fixed to move to Tracker?



## val78 (12 May 2011)

Hi I have posted elsewhere about being one of the people who were placed in error by BOI on a variable after coming off fixed and should have been placed on a Tracker. I have got on to Branch as I was getting nowhere with Mortgages in Dublin. 
The lady in Branch was explaining to me about my rates and am now confused on what to do for the best.

I fixed in June 2010 for 3 yrs at 3.95%, my tracker would be ECB +1.25%.. My current repayment is 1100 approx and going by previous statements on my a/c this would drop by apprxo 200 - 250 per month to about 900.

Her point is the Trackers are rising and I fixed at a good rate I think she said the three year fixed at minute is 5.95% in comparison.
When my current fixed ends in 2013 I will revert to Tracker.

To be honest I am not very clued in when it comes to all this and I would really appreciate some views.

By the way there is no guarantee the Bank will break me out of the fixed without penalty as of yet. Have requested this but no response and now I am unsure what I should do. 
Thanks


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## Sunny (12 May 2011)

Personally (and some people won't agree) but if you are certain of reverting to a tracker in 2013, I would stay fixed at 3.95% until then. It's a good rate and gives you certainty and peace of mind. Tracker of ECB +1.25% will probably be a rate of about 3 - 3.25% by the end of 2011.


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## NorfBank (12 May 2011)

_Here's one who doesn't agree _

At the moment you are paying 3.95%, your tracker rate would be 2.5% so a difference of 1.45%. If the ECB increase their rate in increments of 0.25% you will need 6 interest rate increases for the fixed rate to save you money.

You have two years left on the fixed rate. Will there be 6 x 0.25% interest rates increases in the next two years - more than likely yes, but it could be well into 2012. Up until that point you will save money by being on the tracker.

I hope that makes sense. In a nutshell - go on the tracker if you can break without penalty.

As it was their mistake to begin with, they should not charge you a penalty for breaking the fixed rate.

[broken link removed]


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## Sunny (12 May 2011)

NorfBank said:


> _Here's one who doesn't agree _


 
There is always one! 

It really is a personal choice depending on your circumstances.


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## Knuttell (12 May 2011)

You should bypass all dealing with Bank staff at branch and at call centre level,you are wasting your time,take my word for it,they really havent the foggiest.

Send a letter into:

*Bernie O Donnell,
Customer Affairs Manager,
Customer Affairs Unit,
4th Floor,New Century House,
Bank Of Ireland,
Mayor St Lower,
Dublin 1*.

She appears to be handling all such Tracker related "problems"

Outline your position and ask for a final response letter to this issue,use the words *Final Response Letter*,you will receive a definitive reply to your query,if it is not to your satisfaction then lodge a complaint with the Financial Ombudsmans Office.


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## Seagull (12 May 2011)

If they hadn't made the mistake, you wouldn't have taken the option of a fixed rate. Ask them to switch you over to a tracker backdated to when you should have been given it.


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## SNIPER (14 May 2011)

Would that customer affairs manager look after ICS Tracker/ fixed mortgage problems too ?
Thanks


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## Knuttell (14 May 2011)

SNIPER said:


> Would that customer affairs manager look after ICS Tracker/ fixed mortgage problems too ?
> Thanks


 
Yes,I am with ICS and dealt with her Dept..do not waste your time with ICS.


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## mcaul (15 May 2011)

NorfBank said:


> _Here's one who doesn't agree _
> 
> At the moment you are paying 3.95%, your tracker rate would be 2.5% so a difference of 1.45%. If the ECB increase their rate in increments of 0.25% you will need 6 interest rate increases for the fixed rate to save you money.
> 
> ...


 
ah but you are forgetting to take into account the cost differential each month that the fixed rate is above the tracker and deducting this from any higher than tracker cost 

So unless the ECB increases 6 times by 0.25% within the next 12 months or so, moving back to the tracker is by far the better option.


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## regvw (15 May 2011)

+ 1 with Seagul


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## Greta (15 May 2011)

You should not only break out of the tracker now, but to have it backdated, as if you had always been on a tracker, and to get the difference refunded to you. This way, it is much more advantageous for you than to dumbly stay on the fixed rate simply because the bank put you on it in error. It's their error, they should fix it and put you in the position you would have been in if the error had never occurred.


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## val78 (16 May 2011)

Thank you for alll the replies, makes it lot  clearer for me to have gotten your views.. I have asked bank to let me out of fixed and back date the tracker due to their error, I was told that due to volume of compaints that it may take up tp 10 working days so that time is up on Friday will let ye know how I get on. Thanks again for your replies and help.


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## val78 (19 May 2011)

*Update*

I just contacted BOI, basically I can break out of fixed no penalty BUT they will not back date my tracker.. not happy to say the least. basically there  line is they want to ensure all customers treated fairly so thats why I got an interest adjustment for when I was on variable rather than tracker.. they say the central bank only in existence a year and that this issse if for going forward not going back so therefore not backdating any trackers. these guys are not operating on logic at all.. complaints process here i come. i thought i had started this already but no this resposne is from the ' team ' in mortgages set up to deal specifically with the 2000+ customers involved...onwards to complaints


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## val78 (28 Sep 2012)

Hi I just want to update my story. I traded letters and phone calls last summer wit BOI and to no avial. Personal issues meant it was set aside until June. Again I attempted to get BOI to see reason but it didn't happen. Having read other peoples stories on this forum renewed my determination to get this sorted and I submitted my claim to the Ombudsman. Within 2-3 days one of their team contacted me and advised me that they were contacting the Bank seeking a Final Response. The Bank dragged their feet for few weeks saying they were issuing response in few days, eventually a written request from Ombudsman Office did the trick and Bank agreed to everything I was requesting from the outset. They are restoring Tracker now 2% once MFA is returned and breaking my fixed agreement without penalty and refunding the difference in interest. Of course it is phrasesd they want to settle my claim but it is not an acknowledgement that I had any contractual rights to it. Basically they just being nice!!!!!  
Anyway Thanks to this forum for sharing of  each others stories which gave me the confidence and push to persue this matter and the Financial Ombudsmans Office who were efficient and very easy to deal with.


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## Jazz01 (28 Sep 2012)

Great news - well done on that for seeing it through to the end...


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