# Mortgage Interest Rate Review



## Interest_rate (20 Dec 2019)

In 2007 we took out a 5 year fixed rate mortgage and were charged 5.4%.

In October we received a letter advising us that as part of the Mortgage Interest Rate Review we were identified as being on the incorrect interest rate for 5 years.  We should have been on a rate of 4.94%.  We were also left on the 5.4% rate for 6 months longer than we should have been.

We should have rolled on to a 2.15% tracker rate. (ECB + 1.15%)

Enclosed with the letter is a cheque totalling €10,111.36.  This is made up of €9,274.81 interest over charged and €836.55 compensatory payment.

Should we consider this the end of the matter?  The Bank owned up to the two errors and have issued us with a cheque for the amount overcharged and provided a compensatory amount.

Personally we feel, they have owned up, refunded the over charge and given compensation but are hesitant to lodge a cheque without some financial advice or opinion.


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## Brendan Burgess (20 Dec 2019)

1)You can lodge the cheque without any commitment. It is an initial payment and is not in full and final settlement. So if you lodge the cheque and later decide you want more, then you can apply for more. But you keep the €10,111.

2) You were on a fixed rate from 2007 to 2012 and should have gone on to a tracker at ECB +1.15%.   Being overcharged by €9,200 seems small. 

3) I expect that not only have you received this cheque, but your mortgage balance has been reduced as well. 

4) What lender are you with?  My guess is that it was AIB or EBS.

5) How much was your original mortgage? 

6) Were you in arrears at all and if so, by how much? 

Brendan


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## Interest_rate (20 Dec 2019)

Brendan Burgess said:


> 1)You can lodge the cheque without any commitment. It is an initial payment and is not in full and final settlement. So if you lodge the cheque and later decide you want more, then you can apply for more. But you keep the €10,111.
> 
> 2) You were on a fixed rate from 2007 to 2012 and should have gone on to a tracker at ECB +1.15%.   Being overcharged by €9,200 seems small.
> 
> ...



Thanks Brendan,

2) the over charge for 5 years was 0.46% and 3.25% for 6 months.

3) It hasn't been reduce as far as we know.  Only by the capital payments made but we haven't lodged the cheque yet.

4) First Active - now with Ulster Bank

5) 210K

6) Not in arrears (TG)

Thanks


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## Brendan Burgess (20 Dec 2019)

Interest_rate said:


> 2) the over charge for 5 years was 0.46% and 3.25% for 6 months.



That does not sound right.

Your fixed rate expired in 2012.

What interest rate were you on from 2012 to 2017 

And why only 5 1/2 years. It should be 2012 to 2019 

Brendan


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## Interest_rate (20 Dec 2019)

Apologies I should have clarified that we were put on the correct ECB+1.15% in 2012/early 2013 an are still on that.


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## peemac (21 Dec 2019)

Looks like the refund figure is about right considering the new information.

As it probably didn't cause you too much distress, there's not much else to do except enjoy the refund


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