# Paying 0.5% above ECB but documents say 0.79%



## caaaon (31 Oct 2013)

I am lucky enough to have a Danske Bank tracker with an interest rate of 0.5% above the ECB. I have it since 2006 and it has always been at this rate above the ECB, and the various annual statements from the bank over the years have restated this. It was the rate we agreed based on the LTV at the time. The problem is that official letter I have from the bank from 2006 states that the rate is 0.79% above the ECB. Should I be concerned ?


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## Brendan Burgess (1 Nov 2013)

There is a 6 year statute of limitations which the banks stick to rigidly in claims against them. So if they made a once off overcharge back in 2006, your right to claim against them now would be gone. 

If they had overcharged you .79% instead of .5%, you could apply for a refund going back only 6 years. 

You have been undercharged €190 per €100,000  per  year or €1,140 per €100,000 for 6 years. So if you choose to report it, how much would it cost you?


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## caaaon (1 Nov 2013)

Thanks for the reply. 

I have never been charged 0.79%, it was 0.5% above ECB from the beginning. The person who set up the mortgage set it at 0.5% as the LTV was less than 50% at the time. My only concern is that the documents I have say 0.79%. 

At the moment my plans are to say nothing, it was just the news about Danske Bank that prompted me to ask here


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## rameire (1 Nov 2013)

does the condition state that the rate will not exceed 0.79% above ecb,
I have seen this before on a tracker mortgage and the rate was lower than what was stated.


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## Luternau (2 Nov 2013)

What does the Mortgage document you signed state? This will be the determining factor in what rate or rates you will be charged for the life of the mortgage. If its a LTV tracker, its possible they may adjust the rate according to the current LTV.


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## twofor1 (2 Nov 2013)

caaaon said:


> I am lucky enough to have a Danske Bank tracker with an interest rate of 0.5% above the ECB. I have it since 2006 and it has always been at this rate above the ECB, and the various annual statements from the bank over the years have restated this. It was the rate we agreed based on the LTV at the time. The problem is that official letter I have from the bank from 2006 states that the rate is 0.79% above the ECB. Should I be concerned ?


 
I had a standard tracker with Danske dated 2005, T&c’s state ECB + .79%.

LTV trackers were introduced in 2006.

I wrote and asked for the new LTV rate of ECB + .50%, I was sent out a two page document to sign and return, titled ‘’Conditions for National Irish Bank LTV Mortgages’’, this document just outlines additional T&c’s that apply in addition to your original agreement such as the different rates for different LTV’s, it also states the rate being offered, in my case they offered ECB + .50%.

So I now have the original documentation stating ECB + .79% and the additional document changing it to ECB + .50%.

Could you have this second document somewhere?


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## caaaon (4 Nov 2013)

Sounds very similar to my story, but I don't have the 2nd letter. I think it's probably best to leave it alone and say nothing.


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