AIB AIB Prevailing Rate refund calculator

bobpendemic said:
Interested to see if "Karen's" refund was compound or simple -
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AIB - AIB Prevailing Rate refund calculator

Hi @October2019, thanks for the calculator. Mine is similar to others here. Your interest calculation came to €10,323. But AIB paid €9,223. Is the compound/interest a debate or are AIB just plain wrong and trying to save some €€€'s again? Hoping to get away with it.
www.askaboutmoney.com
 
Daithib said:
Sorry , fixed rate ended sept 2009 , fixed for 3 yrs from 09-12 and again from 12-15, after that I was on a variable rate.
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Hi Daithib, in order to give an estimate I need much more information, exact dates that you came off the fixed rate, exact dates that you went onto the fixed rates in 2009-2012 & 2012 -2015 and the actual rates themselves. I dont need the variable rates
 
hi
hope someone can help.
we had a mortgage write down of 29712 euro
we received our cheque this morning for 2666 euro.
we came off a fixed rate in September 2013.
we had applied for a 6 month interest free payment as my wife was pregnant.
our fixed rate ended during this break.
Have Aib based our interest payment on what we were paying when we came off the fixed rate, which was 602 that month?
It went back to 1500euro 2 months later!!!
in shock here
 
I don't really understand that either and it could be an error.

I doubt that you had an interest free period. Do you mean a payment break? They continued to charge interest during that period.

I would reckon that you were charged the interest from Sept 2013 whether you paid it or not and so you should have received about €8,000 in payment.

I don't think that arrears even impacts that. I suppose that if you were still in arrears after the capital write down, then they might apply the cash refund to clearing the arrears. I don't know if they are or not.

Call the helpline.

They won't understand it but they will investigate it.

If they insist that it is correct, then ask them to provide you with a copy of the calculation in writing.

Brendan
 
Thanks for your reply.
Yes probably a 6 month break.
We had arrears but they restructured our account in 2015.
Rang the helpline poor girl had no information about it and was of no help.
She ordered a break down to be sent out to us. Will take 10 days.
Thanks again
 
Niall.con said:
We had arrears but they restructured our account in 2015.
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OK, what format did the restructure take?

The only way that I can see the refund being impacted is if they stopped charging interest for a good part of the period. But AIB didn't do that for customers other than on split mortgages.

I presume that you would have told us if you had a split mortgage.

Brendan
 
Cheque recieved today. Came off fixed rate in March 2012 with balance owing of €273k. Recieved a write down of just under €33k and cheque today for €9900. Calculator had it a bit higher but presumably down to the simple interest calcuation.
 
Brendan Burgess said:
OK, what format did the restructure take?
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They put us on a 'low fixed rate alternative repayment arrangement '.

Added arrears and interest to our capital and extended our loan term by 7 years!

We have been paying 0.5 interest rate for the last 5 years. This I take it is the problem.

Would they have added the interest we should of paid to our capital?
 
cheque finally arrived today. Amount is 1k less than simple interest (2k less than rates I thought I was on ) and 4K to 5k less than compound calculations.
 
October2019 said:
You need to request the calculations from AIB and compare
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Thanks I have just written to Aib as I reopened current account so I could access mortgage statements . I have carefully checked all and looks like aib have underpaid us by over 2k on simple interest and over 5k on compound calculations
 
October2019 said:
No not that I can think of
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Hi October2019
I have just received a breakdown of the calculations for interest refund from aib. I had requested your advice on checking my calculations previously on Aug 25th when I received my interest refund as the calculated interest refund from aib is approx €1285 lower than that calculated using your spreadsheet. Based on the compound interest calculation on your spreadsheet I calculated €10360 and for the simple interest calculation it was €8823. The refund from aib was €9074.

In the breakdown of calculations I have just receive Aib explain the interest refund was calculated as follows:

The highest interest rate at the start or end of each month multiplied by the number of days in the month in question divided by 365 multiplied by the 12% balance reduction.

I am useless when it comes to simple vs compound...would you know based on their explanation of the calculation, have aib used a simple interest calculation in my refund?

Thank you so much again for putting together such an excellent spreadsheet on this.
Kind regards
Jellytot
 
Hi October2019
Apologies I meant to say that on looking at the Aib calculations the 'balance reduction amount' each month remains the same from when I came off the initial fixed rate in June 2010.

Kind regards
Jellytot
 
Hi Jellytot

Is it a very long calculation? If not could you scan it and email it to be at brendan at askaboutmoney dot com.

If it's too long, please send me the covering letter and the page.

Thanks

Brendan
 
Brendan Burgess said:
Hi Jellytot

Is it a very long calculation? If not could you scan it and email it to be at brendan at askaboutmoney dot com.

If it's too long, please send me the covering letter and the page.

Thanks

Brendan
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Thanks Brendan
It isn't too long. I fixed from 2008 to 2010. Then fixed again from 2010 to 2012. The mortgage was then SVR until I sold the house and closed the mortgage at the end of Nov 2018.

I will email a scanned copy later this evening to you. Your advice is very much appreciated.
Kind regards Jellytot
 
Hi Jellytot, Yes they have used simple interest calculations. The reason for the difference versus the simple interest calculation is because they have taken the highest rate in the month as opposed to calculating it on a daily basis, which is the reason it is higher. Fret not though, Brendan is looking into the simple versus interest calculation with AIB.... I know who my money is on
 
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