AIB Do I get my breakage fee refunded

Hello Brendan

Sorry I'm new to this, thanks for everything you are doing to help us.
I paid €14000 to change from a fixed rate of 5.9 per cent to a variable rate of around 3 per cent in July 2008 when we changed they never offered us a tracker, and the way they contacted us was at 10 o clock one night and proposed that we add the breakage fee onto our mortgage even though he said to me that they shouldn't really do this, firstly am I entitled to that money back, and secondly would I be part of the 300

Thanks again Brendan,
I hope I done it right this time

Hi Pat

The AIB Prevailing Rate programme applies to people whose fixed rates ended after October 2008 who were not offered a tracker.

If you got the €1615 payment two years ago, I am assuming the following:

1) You broke out in July 2008 and were offered a tracker
2) You did not choose a tracker but went variable
3) You fixed at some later date
4) When that later fixed rate ended, you were not offered a tracker - this is why you are getting the money.

If, by some chance, you were not offered a tracker in July 2008 when you broke out, then you are in an entirely different group altogether. You should be getting the tracker margin available at that time.

I don't see any reason why you should get a refund of your break fee? It seems to me to have been properly charged.

Brendan

Sorry Brendan it was July 2009
And it was done very hush hush, we just got a letter to we were being moved to a variable rate

Thanks again

I don't see the relevance of the fixed rate breakage fee?

You were on a fairly long term fixed rate and variable rates were a lot lower. You paid a break fee to get out of the high fixed rate.

If you knew that you could get a tracker, you would have been delighted to pay this break fee.

So, no, you won't be getting it back.

And July 2009 is 6 months after the end date for the 300 cohort.

Brendan

Thanks very much Brendan

Hello again Brendan

Just to clarify, I paid the breakage fee because I was after being laid off and couldn't pay my mortgage so I was trying anything that would reduce my payments, I didn't know I could get a tracker, I didn't even know what a tracker was, and it was never even mentioned.

Thanks again for all you are doing it's the only way of knowing what's going on

Just to clarify again.

None of that is relevant.

If they had told you before you broke the fixed rate, that you could avail of a tracker, you would still have had to break out of your fixed rate and you would still have had to pay that break fee.

Brendan

Hello Brendan
Got my cheque, but they said my balance was 207,000 but then the breakage fee took it to 221,000,should they not have went with the later figure

Hi Pat

Interesting question. This is my initial view of it. But if you have a different way of looking at it, do let me know.

Let's wind the clock back.

You had a mortgage of €207k on a fixed rate and you wanted to break out of it.
Let's say that they had offered you a tracker at ECB +1.5% at the time.
They said that the break fee was €14,000
You could have paid this in cash or added it to your mortgage.
You wanted to add it to your mortgage.
That was a new account and they were not doing trackers for new business so I think that they were right to do it at the SVR.

As I say, this is my initial argument. Is there some alternative way of looking at it?

Brendan