# Query on BOI interest rate on mortgage



## Edge (9 Mar 2013)

Hi, Can someone help, Im checking my mortgage documents from BOI as I have continued to have increases and like many other people struggling. I have noticed that in my original mortgage loan letter I am on variable rate, but it states  that the variable rate should be no more than 1.3% above the ECB rate, I am now currently paying 4.35%. Does this mean I am and have been paying too much ? Please help Tks


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## PortoBoy (9 Mar 2013)

If it references a link to the ECB, usually you'd be looking at a tracker, not SVR, I would have thought. Which was it sold to you as? Can you quote the exact clause from your loan offer/T&Cs?


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## Edge (10 Mar 2013)

Hi Many thanks for your reply. In my Loan offer letter in Part 1 it advises the instalments type as variable, however in Part 4 - The special Conditions it states, I quote : "the interest rate applicable to the loan is a variable interest rate and may vary upwards or downwards. The interest rate shall be no more than 1.3% above the European Central Bank Main Refinancing Operations Miniumum Bid Rate ("Repo Rate") for the term of the loan." Unquote. Therefore this is why I am confused as I think now it may be a tracker and not an SVR, I never before read the small print and only saw the word 'variable and therefore presumed it was not a tracker'. I took this out in 2005. Your help is much appreciated. Many Thanks


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## dam099 (10 Mar 2013)

Sounds like you should be on a tracker. A tracker is a form of variable rate as while the margin above ECB may be fixed, the ECB rate itself is variable, thus calling it variable in the earlier terms is not necessarily inaccurate.


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## WizardDr (10 Mar 2013)

@edge

Did you go onto a fixed rate at some stage?

If that was your letter of offer, and there were no changes then yes you would be on tracker. However, I have not known BoI to make THAT mistake as in a straight forward tracker suddenly doesn't become one.

Are you able to tell us what else happened? I am sure something has. AND there will
be work to restore tracker.

BoI did interchange the terminology (as @dam099 says) and you have correctly located the relevant clause. I think there are missing documents.


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## Edge (15 Mar 2013)

Sorry for delay I am away at the moment so I cant get to documentation but should be able to next week.

Anyway Yes I wanted to keep things simple at first, but I acually have 2 mortgage's taken out at the same time on the same property. The main mortgage ( mortgage 'a') was based on my salary and the 2nd one ('b') was an equity release on my principal house. The larger one 'a' I definately had fixed and I was repaid by the BOI nearly 4K, following the mis-handled interest rates, as it should have been put back on a tracker. The 2nd one 'b', which I am now questioning, I think I may have fixed but not sure at the moment. However both 'a' and 'b' mortgage documentation is worded the same, so 'b' does look a tracker for sure.

So it looks like they repaid on 'a' but not on 'b'.  I have checked my principle house mortgage (taken out in 2002) and this definately looks like SVR as no reference to ECB rates.  This therefore looks like that the BOI have not repaid on tracker mortgages which are linked through equity releases on SVR mortgages ? Any suggestions or comments on above, and how I should proceed with the Bank on this ? Many Thanks


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