great article on this issue in the irish times today
https://www.irishtimes.com/business...omers-could-be-eligible-for-redress-1.3267662
https://www.irishtimes.com/business...omers-could-be-eligible-for-redress-1.3267662
AIB AIB restoring my tracker - but at 3.67%!
- Thread starter bungaro
- Start date
Hi Guys, like I posted on another thread here. There is a very large cohort of AIB customers with entitlement to tracker, who started of fixed and at end of expiry were refused a tracker. AIB are looking to keep this cohort out of scope saying they were never on a tracker. However if we can all cast our minds back to those days. AIB were selling to us as a lifetime product. Selling their tracker offerings as better than competition due to the LIFETIME value they offer customers.
Realistically once your draw down docs mention Tracker, you should be able to avail of tracker for the entire lifetime of your mortgage. And that margin as was entitled to you at drawdown to be kept the same for the life time of the mortgage. The only thing that could move the margin was a change in the Loan To Value ratio.
If you remember back to these days, 2007 - 2008, which you may not so I have posted some links. AIB were constantly pushing LIFETIME when they promoted their tracker offerings. Saying stuff like they (AIB) represent significant value over the life of the mortgage. Their trackers were for life. Constantly pushing the LIFETIME aspect of their mortgage. One of my favourite quotes from AIB was from , Head of Credit Products, AIB Bank who said
"We believe lifetime value is a key consideration for many mortgage customers. These new rates not only provide that, but have the added bonus of an additional discount for the first year of the new mortgage." They is taken from an article in 2007 can be viewed on below link , just shows how AIB were selling this to us at the time. NeverEver a mention that trackers maybe be gone, of if we didn't take tracker from state of drawdown we could lose it. We were always told, at any point during the LIFETIME of your YOUR mortgage you can return to YOUR tracker at the same margin. No RISK!
http://www.finfacts.ie/irishfinancenews/article_10008920.shtml
I have also attached screenshot of the press release from AIB October 10th 2008, when AIB removed the offering of trackers to NEW customers. You will clearly see from this that both
Existing customers with Tracker Mortgages and Customers who currently have an offer of a Tracker Mortgage, but which is not yet drawn, will still be able to avail of the Tracker Mortgage within the terms of their loan agreement.
Realistically once your draw down docs mention Tracker, you should be able to avail of tracker for the entire lifetime of your mortgage. And that margin as was entitled to you at drawdown to be kept the same for the life time of the mortgage. The only thing that could move the margin was a change in the Loan To Value ratio.
If you remember back to these days, 2007 - 2008, which you may not so I have posted some links. AIB were constantly pushing LIFETIME when they promoted their tracker offerings. Saying stuff like they (AIB) represent significant value over the life of the mortgage. Their trackers were for life. Constantly pushing the LIFETIME aspect of their mortgage. One of my favourite quotes from AIB was from , Head of Credit Products, AIB Bank who said
"We believe lifetime value is a key consideration for many mortgage customers. These new rates not only provide that, but have the added bonus of an additional discount for the first year of the new mortgage." They is taken from an article in 2007 can be viewed on below link , just shows how AIB were selling this to us at the time. NeverEver a mention that trackers maybe be gone, of if we didn't take tracker from state of drawdown we could lose it. We were always told, at any point during the LIFETIME of your YOUR mortgage you can return to YOUR tracker at the same margin. No RISK!
http://www.finfacts.ie/irishfinancenews/article_10008920.shtml
I have also attached screenshot of the press release from AIB October 10th 2008, when AIB removed the offering of trackers to NEW customers. You will clearly see from this that both
Existing customers with Tracker Mortgages and Customers who currently have an offer of a Tracker Mortgage, but which is not yet drawn, will still be able to avail of the Tracker Mortgage within the terms of their loan agreement.
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Bit late to askaboutmoney. Couple weeks ago, after reading this, requested full copy of mortgage from AIB. Received, but only signed sections and didn't include Section 3. Got copy from my solicitor and in same situation re. 3.2c. Never received any letters offering tracker so onto AIB tomorrow! Thank you Brendan, Balfor and co!!
Hi Bungaro,
I have been following all the conversations with regard to the 3.67% prevailing tracker rate offered for some months now and I am also one who had a fixed rate in 2006 which finished in Sept 2009 and have clause 3.2 in my letter of offer outlining the option of a tracker. I have all my documents in hand and since 2013 I have been in contact with my bank asking why I was not offered a tracker as it was my contractual right and the bank have mis appropriated my money and have not acted with due diligence. I received two letters exactly like Balfour's case telling me that they will now offer a prevailing tracker rate of 3.67%.
I have been following all the conversations with regard to the 3.67% prevailing tracker rate offered for some months now and I am also one who had a fixed rate in 2006 which finished in Sept 2009 and have clause 3.2 in my letter of offer outlining the option of a tracker. I have all my documents in hand and since 2013 I have been in contact with my bank asking why I was not offered a tracker as it was my contractual right and the bank have mis appropriated my money and have not acted with due diligence. I received two letters exactly like Balfour's case telling me that they will now offer a prevailing tracker rate of 3.67%.
CillDaraLily
Registered User
- Messages
- 9
Looking for some advice please. My letter of offer is from Feb '09, after trackers were no longer offered to new customers. However AIB had not yet changed the wording in their contracts and clause 3.2 still applied to me. I am now coming out of a fixed rate so they have offered me the tracker rate of 3.67. I understand that I have cause for redress as they should have offered me this years ago when I came out of a fixed rate. However I'm wondering do I have cause to challenge the rate? I'm not in the group like most of you where there was a tracker available at the time of your letter of offer, even if the rate was not specified as you opted for fixed. At least there were available rates at the time that you can refer back to and argue that you should be reverted to. There were no such rates by Feb '09 so it seems that the banks could argue that the prevailing rate would have been 3.67. Any suggestions?
Hi Bungaro I’ll send u pm now too. I am one of the numbers who has been offered the new 3.67% rate by AIB. I intend on responding to the bank again on this but not sure what line others are going down. They advised I could take to the ombudsman in their 5 page letter but my understanding is that ombudsman not taking on any of these cases until the CB review is complete?
Hi folks,
I'm relatively new to this forum but feel I am in a similar situation to many of you. I applied for a €300k mortgage in 2007 and was approved and received letters of offer. At the time I was aib staff so a portion of my mortgage (€190k) was offered at a preferential fixed rate of 3% with the balance at a "variable annuity" tracker rate ; ECB + 1.1%.
Shortly after, I realised I needed additional funds to build so I requested an extra €15k. New offer letters were sent to me for €315k with €190k on staff fixed preferential rate 3% and the remainder on "variable annuity" variable loan.
As I was building, I drew down the loan in tranches starting with the staff fixed loan in July 2008. I continued drawing on this portion until I reached €190k and then opened the fixed loan in April 2009. This loan was fixed for 3 years.
I managed to keep copies of all my 2007 and 2008 letters of offer and can see in both that we have the 3.2 clause offering us the option of a tracker at the prevailing rate at the end of any fixed period.
I contacted aib 2 weeks ago querying why we hadn't been offered a tracker and two days later received a letter advising us that we are included in their review. I also requested our mortgage file from aib staff business however we only received our 2008 contract and none of the 2007 letters or options letter at the end of our fixed rate in 2012.
I have spoken to aib several times in the last two weeks and they are extremely vague and pretty much tell me nothing!
It's likely that I will receive an offer of a tracker at 3.67% however I'm wondering if I would have any case with the bank due to the fact that I have my original letters of offer which offered me the "variable annuity" tracker at ECB + 1.1%? We drew down our mortgage based on the 2008 contract "variable annuity" variable loan but I find this to be very misleading as both loans are referred to as variable annuities!
I'm also wondering if I have case regarding the staff fixed element at 3%. Should I have been offered a tracker when I left AIB as I was only eligible for the preferential fixed rate 3% for as long as I was staff. Perhaps clutching at straws with this one!!
In any case if you could please add me to your group that would be great!! Strength in numbers and all that.
I'm relatively new to this forum but feel I am in a similar situation to many of you. I applied for a €300k mortgage in 2007 and was approved and received letters of offer. At the time I was aib staff so a portion of my mortgage (€190k) was offered at a preferential fixed rate of 3% with the balance at a "variable annuity" tracker rate ; ECB + 1.1%.
Shortly after, I realised I needed additional funds to build so I requested an extra €15k. New offer letters were sent to me for €315k with €190k on staff fixed preferential rate 3% and the remainder on "variable annuity" variable loan.
As I was building, I drew down the loan in tranches starting with the staff fixed loan in July 2008. I continued drawing on this portion until I reached €190k and then opened the fixed loan in April 2009. This loan was fixed for 3 years.
I managed to keep copies of all my 2007 and 2008 letters of offer and can see in both that we have the 3.2 clause offering us the option of a tracker at the prevailing rate at the end of any fixed period.
I contacted aib 2 weeks ago querying why we hadn't been offered a tracker and two days later received a letter advising us that we are included in their review. I also requested our mortgage file from aib staff business however we only received our 2008 contract and none of the 2007 letters or options letter at the end of our fixed rate in 2012.
I have spoken to aib several times in the last two weeks and they are extremely vague and pretty much tell me nothing!
It's likely that I will receive an offer of a tracker at 3.67% however I'm wondering if I would have any case with the bank due to the fact that I have my original letters of offer which offered me the "variable annuity" tracker at ECB + 1.1%? We drew down our mortgage based on the 2008 contract "variable annuity" variable loan but I find this to be very misleading as both loans are referred to as variable annuities!
I'm also wondering if I have case regarding the staff fixed element at 3%. Should I have been offered a tracker when I left AIB as I was only eligible for the preferential fixed rate 3% for as long as I was staff. Perhaps clutching at straws with this one!!
In any case if you could please add me to your group that would be great!! Strength in numbers and all that.
Hi can you add me too.
I got a mortgage through a broker in 2008 from an aib subsidery . In the last couple of days i made contact myself to the bank.
I explained my situation that I got a mortgage in 2008 and went fixed for 1 year but was not offered any othet option other than prevailing variable when I came off.
They told me that they will investigate and reply within 28 days.
Should I submit a freedom of information request to the bank and the broker?..
Any suggestions
I got a mortgage through a broker in 2008 from an aib subsidery . In the last couple of days i made contact myself to the bank.
I explained my situation that I got a mortgage in 2008 and went fixed for 1 year but was not offered any othet option other than prevailing variable when I came off.
They told me that they will investigate and reply within 28 days.
Should I submit a freedom of information request to the bank and the broker?..
Any suggestions
hi guys, can you please pm me as it is easier to keep track that way.
@Sean A - do you have the same clause in your contract too?? if so then i would get onto the bank and request everything they have on file on your mortgage. we are due to hear back from the bank by the 21st of nov (according to the bank's last letter) so we wait with bated breath!
@Sean A - do you have the same clause in your contract too?? if so then i would get onto the bank and request everything they have on file on your mortgage. we are due to hear back from the bank by the 21st of nov (according to the bank's last letter) so we wait with bated breath!
@bungaro
No at the moment I have documents to say that after the one year fixed I would revert to variable rate but that's the point.
In the lead up to loan offer and cheque drown down I wasn't offered anything but this I was told by the broker that A tracker wasnt available.
My mother at the time was pestering me to ask for one thats how I remeber so vividly.
No at the moment I have documents to say that after the one year fixed I would revert to variable rate but that's the point.
In the lead up to loan offer and cheque drown down I wasn't offered anything but this I was told by the broker that A tracker wasnt available.
My mother at the time was pestering me to ask for one thats how I remeber so vividly.
Thanks bungaro
That's my argument I suppose. Why wasnt I offered a tracker whe they were still being offered by the bank .why was I discriminated against ie not giving the option?
There has been various articles written in the press lately saying that cases like mine may have any been dealt incorrectly by the banks at the time.
Anyway the bank has opened up an investigation so I will.keep the group posted.
That's my argument I suppose. Why wasnt I offered a tracker whe they were still being offered by the bank .why was I discriminated against ie not giving the option?
There has been various articles written in the press lately saying that cases like mine may have any been dealt incorrectly by the banks at the time.
Anyway the bank has opened up an investigation so I will.keep the group posted.
Hi Balfour
My loan Offer doc states that I would be automatically put on variable after the Intial one year fixed rate had expired. No mention of anything other than this.
But presumably I would have been sent a document prior to loan offer which would have required me to pick which rate I would then go onto after the mandatory 1 year fixed.
This is the document that should have presented me with an option to pick a tracker but this document never had any mention of tracker even though they were available. I don't have this document but hopefully get my hands on it!
My loan Offer doc states that I would be automatically put on variable after the Intial one year fixed rate had expired. No mention of anything other than this.
But presumably I would have been sent a document prior to loan offer which would have required me to pick which rate I would then go onto after the mandatory 1 year fixed.
This is the document that should have presented me with an option to pick a tracker but this document never had any mention of tracker even though they were available. I don't have this document but hopefully get my hands on it!
Rangemaster
Registered User
- Messages
- 8
I also have the 3.2 clause and was offered a tracker 3.72% when coming off a fixed rate in Jan 2016. However, does anyone have the clause 3.6.1 which shows the make up of a tracker rate? Part b States that the tracker margin as stated in part 1 of the particulars of offer of mortgage loan, subject to 3.6.3. The margin stated in part 1 of my mortgage is 0%. How do I attach pics?