AIB AIB and tracker mortgage

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kopkidda

Registered User
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Ill get to the point quick with this.

Came off 3 year fixed in September, was put onto variable mortgage rate.

Mortgage contract that we got at start of fixed states that

“At the end of any fixed interest rate period, the Customer may choose between a) a further fixed interest rate period, or(b) conversion to a variable interest rate Mortgage Loan, or(c) conversion to a tracker interest rate Mortgage Loan,at the Bank’s then prevailing rates appropriate to the Mortgage Loan. If the Customer does not exercise this choice, the Mortgage Loan will automatically convert to a variable interest rate Mortgage Loan”

So according to this we should of been offered a tracker mortgage but weren't.
Have written a letter to bank stating that I wanted to be put on the tracker rate and they have responded that they no longer do tracker mortgages.
Where do I stand now?Financial Ombudsman?

Thanks for your time.
 
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So you were never offered the tracker option and were just automatically put on standard variable? If so sounds to me like you have a case. Go through the lender's complaints process and when you get a final response letter take the case to the Ombudsman.
 
Ye have written them one letter already, will write another one saying I am not happy with how my first letter was answered and tell them that I am writing to the Financial Ombudsman, is this a bit drastic?
 
Just before you go down that road, can you talk to the bank one more & state that you were expecting to be out on a tracker mortgage, and you understand that they may not do them anymore, but there is a contract agreement in place already for your mortgage. Also state that there are a number of tracker mortgages still existing and your understanding is that you are entitled to be put on a tracker. If nothing comes of that, then go down the complaints road.

I assume that you did not receive any correspondence from the bank coming up to the end of your fixed term in Sept in relation to this & what you wanted to do? You didn't misplace a letter or anything like that?
 
I did receive correspondence from them and filled out the attached document stating that I wanted to be put on a tracker.

Will write another letter around what your saying there.Thanks
 
Just to clarify:


  1. Your contract provides for the option of a tracker at the end of the fixed rate period
  2. At the end of the fixed rate period they wrote to you setting out your rate options from there on
  3. Did these include the tracker option?
  4. You chose the tracker option or at least wrote on the form that you wanted to go onto a tracker?
  5. They put you on standard variable rate regardless
  6. They now say that they no longer offer trackers but they have not said anything specifically about why you were not offered one or why they ignored your request for one?
 
Were you on a tracker before you fixed? If so then I would say you have a good case, if not then I think the wording implies you will go on to a tracker at the banks prevailing rate, as they have stopped doing trackers they dont have a prevailing rate for them but if they have to offer you one then they I presume will be able to pick the margin over ECB and I doubt they will pick one that suits you.
 

No tracker option was in the letter after fixed rate ended. Which was misleading to say the least.


No It was a new mortgage.
 
Would be very interested as to the response you get from AIB. We are in identical situation, 3 year old mortgage with an initial fixed rate which expired this month. Met with the bank today end explained that we were expecting to be offered a tracker and would still hope to avail of this although it is discontinued for new customers. Was told the query will be passed to home mortgages dept. upstairs but not to expect a positive response. Please let me know what action you decide to take as I also feel we are entitled to a tracker as it was outlined in our initial loan agreement.
 

Will do,got home and read letter in full.Basically saying that as they don't offer tracker mortgages too new customers that even though it stated in the original loan agreement that we would have the choice of going on a tracker we are not entitled to it!
 
Kopkidda, They were supposed to offer you a tracker and they didnt .Correct?
If that is the case, its their problem, they messed up.

Ignore the fact that they are saying we dont offer trackers any more,that is nothing to do with you,you signed a contract stating that you had the option of going on a tracker after your fixed rate.

They now should put you back on your tracker and owe you the difference of what you have been paying and what you should have been paying had you been on a tracker.

To sum up,they should have offered it to you and they didnt,you were entitled to it,so you have a case.
Best wishes
 
But what tracker rate was on offer? None, because they were no longer doing them. So where does the rate come from, the offer doesnt seem to specify the amount over ECB that the tracker should be.

I'd like if you had a case but I dont think you do, it would be the same if fixed rates were no longer available when your original fixed ended, the bank couldn't just make up one specially and if they had to it's unlikely it would be worth having.
 
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I see what you mean.however,the point is they wer supposed to offer a tracker and failed to do so.
It may well say on the loan agreement what that tracker should be,ie,a certain percentage above ECB rates.It doesnt matter that they no longer offer them.
I know from personal experience that these things can be "buried" somewhere in the agreement.
If no rate was specified,I would imagine the Ombudsman would find it unreasonable of the bank to offer a very high rate.
I requested my contract from the bank and surprise surprise,it was no where to be found,why?because they sent me the wrong one..OMBUDSMAN all the way with this.
 
We are in a similar situation.

We took out our mortgage in November 2005. We fixed for 1 year.

In November 2006, we fixed for a further 5 years. That period ends on November 21 next.

In Novemeber 2006, they sent us a letter acknowledging the new 5 year fixed period. There is nothing on this about terms that will be offered when the period ends.

Where, exactly, is this small print located?

Thanks.

D.
 
Were you on a tracker before the fixed or did you start with fixed?

On your own copy of the original loan offer it should state the rate, normally under loan offer conditions, if you started with a fixed it would usually say what type of rate you will revert to.
 
We started with a one year fixed. At the end of this (in 2006) we were offered variable, fixed and tracker. We chose fixed (I know, I know... ;-( though for a while we were in the money when rates rose. But, the real reason we didn't choose a tracker was because the best rate was for <60% of the value and we couldn't match this) and now we're offered just fixed and variable.

I can't find any paperwork other than the various two page documents offering the different rates.

Should I have a document that runs to pages of small print? If so, should one have been issued before the first year of fixed, and then again before the five year fixed period.

My gut tells me you can't ask for a product that no longer exists, but I live in hope.

Thanks for the reply.

D.
 
Exactly, I agree with your gut, you can't get a product that no longer exists for new business, it only applies if it was an original feature of your contract and if so it will be on the original loan offer. Any subsequent fixing of the rate and attempt by the bank to then switch you off the tracker won't work as far as I can see. So unless you started on one, or you were to revert to one after a fixed expired I doubt you can get one now but having said that it's worth pursuing it as far as you can in the hope!
 
No, problem, We were given a customer copy of our loan agreement and part 4 is called general terms and conditions of offer, it is part 3.2 of this section"Further fixed interest rate options/choices." and the wording is exactly as quoted by kopkidda. Hope this helps. Just a quick update was contacted after our meeting to say that the bank no longer offers tracker mortgages. Was advised by the contact at our branch to put the request in writing and get a written response then contact the Ombudsman if I feel we have grounds for a complaint. If anyone else has received any other info would appreciate the updates! Thanks.
 

Totally agreed. The bank could now offer you a tracker at a high margin, or even revert to rates at the date you switched. Such is the wording of the loan agreement reproduced by the OP. I would be surprised if this works out too much in your favour, but good luck.
 
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