# offer of tracker rate from AIB on expiry of fixed rate?



## cloughy (7 Jan 2014)

today out of teh blue we got a letter from AIB in relation to a fixed rate coming up, offering a tracker rate. We fixed in 2006, then again in 2009 and 2012, but never offered a tracker during these fixes.

The wording of teh letter goes
"in addition to the rates previously advised to you (got letter yesterday with new STD variable, fixed rates etc.) you may alternatively selct a prevailing tracker rate due to the terms and conditions of yur letter of offer" 

great you may say, but the next sentence is

"this commercially priced prevailing tracker rate of 5.16% is calculated at ECB currently 0.25% plus a margin of 4.91%"

if this is the case surely we should have been offered tracker rates at previous fixing dates, and also either at the margin that prevailed at original drawdown or at least our first fix, as where does AIB have trackers at a margin of 4.91%.

Am going to ring AIB to get all our mortgage documentation, to see where exactly it is stated, and also query why not before now were we not offered the tracker option, but it looks like they have found out something on reviewing loan documentation and trying to rectify, but surely the margin is way off, as they no longer offer tracker mortgages.

Anyone else receive a similar letter and what have you done, or any outcomes


----------



## Brendan Burgess (8 Jan 2014)

hi cloughy 

very interesting.

you will have to get out the original mortgage offer and all documentation since.

if you were entitled to a tracker in 2009 but weren't offered it, I would argue that you are now entitled to have it backdated to then. 

don't ring them yet. get the documentation first.

brendan


----------



## Rochey (12 May 2016)

Hi Cloughy

I know this was a long time ago but just wondering what the outcome here was? In the same situation now - offer of a tracker rate on 3.67% when variable rate is currently only 3.65%.
It has taken them months to come back to us when we queried the initial commercial tracker rate letter that we got.

Thanks!


----------



## cloughy (18 May 2016)

sorry for the delay, we requested all our documentation from AIB and reviewed it, but since we were never on a tracker mortgage nor was one explicitly outlined in any loan offer we received on additional mortgage amounts we requested we did not go any further, as don't believe we were entitled to one (unfortunately).

Let me know if there is any you have anything different in the sequence of your events.


----------



## Brendan Burgess (29 Jul 2016)

Hi cloughy

I think you are probably one of these guys

* AIB restoring my tracker - but at 3.67%!*

If you are, you should be getting the "prevailing tracker rate" as of 2009 or whenever your 2006 fixed rate period ended. 

Brendan


----------



## Pinesky (29 Jul 2016)

Whatever formula  AIB are using to come up with 3.67% if applied to 2009 is likely to come up with a higher figure as credit risk and basis risk would have been higher then.
Nothing to be lost by asking though . .


----------

