AIB Tracker Rate

KatieC said:
Great, checked my joint account on-line and it shows that the weekly mortgage amount went out at the old rate on 28/10 but the revenue tax credit is reduced from last week! Boldness, I will have to call AIB
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same here, my mortgage comes out on the 25th. I spoke to AIB and they said that the rate changed on the 21st and it was too late for my payment. Doesn't make sense to me. Also my mortgage interest relief changed was reduced by €5!

I am under the impression that interest is calculated daily so it doesn't make a difference in the long run but it would have been nice to have seen a reduction this month.
 
I too have found that the monthly payment (paid today) on my tracker mortgage has not reduced. I rang AIB and they said that customers will only commence paying at the the reduced rate from the 04/11 onwards, as they have so many mortgages to amend to the new rates, they need so many working days to process all the changes etc.. She said that the reduction will be reflected over the life of the mortgage. Thats not much use, I was looking forward to having a couple of extra euros in my account this month. They wont even give a credit for the payment next month.
They didn't have any problem increasing my mortgage payment immediately when rates rose by 0.25% in July (i think).
Is it the same for other banks?
 
The ECB + .45 ends in December so we have a month to go.

I would say that our agreement has something about the bank not having to apply the ECB rate etc if it is no longer appropriate etc. However, in my view, that clause was inserted to cover the situation whereby the euro no longer existed not when the cost of funds was higher for banks.

A court will look to the intention of the parties at the time the contract was formed. Further - as any lawyer will tell you (and I am one!) - all clauses must be interpreted "contra preferentum". In other words, they must be interpreted against the person who drafted them. Consequently, I would be astonished if any bank tries to stop using the ECB as a benchmark on the public.

It's funny - we were originally going to take a fixed option for 1 to 2 years last October but that got pulled on us just before the drawdown.

AIB kindly said they would give us the discounted tracker rate instead. Talk about a blessing in disguise. I'd say that if we were coming off a fixed rate now, we'd be put onto a variable at something riduclous like ECB + 1.5%
 
The relevant condition of the ts&cs would have to be ambiguous before you apply the contra preferentum rule i.e. capable of more than one interpretation and any contrary interpretation should not strain the natural and plain meaning of that sentence/clause. This normally arises in the context of exclusion of liability clauses.

Per Wikipedia:
Contra proferentem is a rule of contractual interpretation which provides that an ambiguous term will be construed against the party that imposed its inclusion in the contract – or, more accurately, against (the interests of) the party who imposed it. Therefore, the interpretation will favor the party that did not insist on its inclusion. The rule only applies if, and to the extent that, the clause was included at the unilateral insistence of one party without having been subject to negotiation by the counter-party. Additionally, the rule only applies if the court determines the term to be ambiguous, which often forms the substance of a contractual dispute.
 

the bottom line is you will benefit in full.
 
+1,Also switched mortgage in july/august this year as old provider(ebs)would only offer ecb plus 1% on ltv<50%,with aib now, on ecb plus 0.45% for 1st 12 months,then 0.66% above ecb thereafter,incidentally nib were offering better rates but as the is no branch in my locality i decided to go with aib,monthly repayments are on the 15th of each month,no notification yet regarding the rate reduction,will also be checking the small print in the contract re not honouring the initial rate.
on a different point,ebs sent out letter re deeds on property and what i wanted to do with them,i assumed solicitor or new provider held them?
 
To Askar:

A contract that says a bank can change from using the ecb base rate as the benchmark for its tracker if it is no longer appropriate is ambiguous in my opinion.

What does "appropriate" mean?

If it's not clear, I think that the clause will have to be interpreted in the borrower's favour.
 
millennium said:
on a different point,ebs sent out letter re deeds on property and what i wanted to do with them,i assumed solicitor or new provider held them?
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Maybe give your solicitor a call, or forward on the EBS letter. Errors can occur. If the re-mortgage was done with First American, they may not have taken up the deeds from EBS yet.
 
trevork said:
I rang AIB and they said that customers will only commence paying at the the reduced rate from the 04/11 onwards, as they have so many mortgages to amend to the new rates, they need so many working days to process all the changes etc..
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This makes no sense to me - according to our account online the rate change was applied on the 22/10. 5% reduced to 4.5%

Next monthly installment is only due Monday so I don't know if they'll apply the rate to the whole installment or just part...
 
just got access to my mortgage online, I am now on 4.5%

So that means I am on ECB + 0.75%
 
Just checked too with AIB on-line - our tracker is now 4.85%, so its actually ECB + 1.1%, and not 1.15% as previously thought.
Tesco - every little helps
 
I received a letter from AIB 2 days ago giving me notification of my new monthly payment to reflect the interest rate cut - due to be taken out of my account on Monday. It seems as if they have passed on the full rate cut for the next installment. I guess I will only really know this once the following installment comes out of my account, but with the way things are going, we might be in for another rate cut before then (I hope!). Its great knowing that I will have an extra 94 euro in my pocket next week compared this this time last month...
 
I rang AIB and was told that for admin reasons they hadn't got to alter my rate, they'll deduct the difference off my capital, using jeacle I'll save about €120 over the life of the mortgage. Woo-hoo!
 
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