EBS fixed rate coming to an end

Hi,

Coming off a 5 year fixed rate (5.06%) in April with EBS. We initially took out a tracker mortgage of ECB Base Rate +1.25%.

Has anyone else come off a fixed rate with EBS and automatically gone back on to a tracker?

I rang them on an unrealted matter a couple of months ago and while I was on I asked what happens when the fixed rate expires. Before I could finish the question the guy told me it's EBS policy to put people on to their SVR and would I like him to send out the policy. I got the policy and it was nothing more than a photocopy of the first page of the fixed rate form we signed 5 years ago.

The original loan offer letter & fixed rate form are at home so don't know the exact wording but it appeared to me to be a bit vague. The fixed rate form mentions something about when it's expired then the mortgage will move to the variable rate then prevailing. It doesn't say what type of variable (i.e standard or tracker variable).

Any opinions?

I'll get the exact wording and post it later. Thanks for any help!

Here's what it says in the Loan Offer letter:

====================================================================================
Type of Loan: Repayment (Including an Interest only period of 12 months)
Total Amount of Loan: €***,***.00
Cheque Issue Amount: €***,***.00
Monthly Interest Only Repayment: €***.00 (See important Note 1)
Monthly Capital and Interest Repayment: €*,***.00 (See important Note 1)
Interest Rate (Variable): 3.25%
Interest Rate Basis: Variable ECB Base + 1.25%
Repayment Period (Years): 35 Approx.

(1) Important Note On an Interest Only Mortgage:
As you have selected an Interest Only facility on your new homeloan, the balance outstanding will not reduce for the period of time your loan is treated as an Interest Only loa,. At the end of the agreed Interest ONly period, your homeloan will revert to an annuity loan (where you pay capital and interest) and repayments will be sufficient to fully repay the loan in the original term (period of time over which you agreed to repay the loan)

Important Note On Tracker Mortgages:
In the event of a rate change before the loan cheque is issued, the rate will be altered to the tracker mortgage rate on offer on that date. If no tracker mortgage rate is available at the time, the prevailing variable rate will apply.

With the tracker mortgage the margin is linked to a specified index or indices and remains constant for the life of the loan. In this case the tracker mortgage will be no more than 1.25% above the prevailing Central Bank Main Refinancing Operations Minimum Bid Rate (Repo Rate) for the term of the loan.

====================================================================================

The rest is just conditions to meet e.g. submit certain things and clear a different loan etc. There's nothing else about what happens if you change rates etc.

Fixed Rate conversion form says:
====================================================================================
Declaration
I/We wish to apply to convert the balance of my/opur loan account to a fixed rate of 5.06% for the next 5 year(s) of my/our mortgage.

I/We understand that when this fixed rate period has expired the loan will convert to the applicable variable rate the prevailing.

Important
i/We understand that in the event of there being a change in interest rates before EBS have converted out loan rate, EBS will apply the fixed rate currently available. If there is no other fixed rate available, the appropriate variable rate may apply.

Unfortunately, EBS cannot inform customers individually of changes in interest rates prior to converting their loan rate.

I/We understand that an early redemption charge is payable in the following cases where the fixed rate period has not expired:
1. Is a capital payment or full repayment is made to the loan.
2. If the loan is converted to a variable rate/tracker rate.
3. If the loan is converted to another fixed rate.
====================================================================================

It goes on to show how the early redemption charge is calculated.

Any opinions?

Have you read through the similar threads here?

LDFerguson said:

Have you read through the similar threads here?

Click to expand...

Been through most of those threads. There are a lot of similar situations for other banks but I don't see anything specific to EBS, which is why I'm asking.

Hi Neddy

What happened when you finished your fixed rate? Did you go straight to variable or did they give you back your tracker?

JL_10 said:

Hi Neddy

What happened when you finished your fixed rate? Did you go straight to variable or did they give you back your tracker?

Click to expand...

I still don't know!!! Fixed finished on the 1st April and never heard anything from the bank. I know I could ring them but want to see what action they take automatically but still waiting. I've always felt they've been pretty poor communication wise anyway. We always receive notification of a change to our monthly payement (e.g. due to TRS change) about 3-4 days before the payment is due. Happen in January and we had about 4 days to find an extra €100.

I've checked my account online (it's not a great system) and it still says Home Load fixed with the fixed end date being 01/04/2012 so will wait an see.

I'm pretty sure they've messed up my account anyway as they've done on 3 separate previous occasions and it'll be up to me to point it out to them.

Dear Neddy, interested in how you set up your account online. I have a mortgage with EBS, no other account(s), but when I wanted to set up an online account for my mortgage, I could not see that particular option. You say it's not a great system but I'd be interested in trying it anyway! Thanks,

HMC said:

Dear Neddy, interested in how you set up your account online. I have a mortgage with EBS, no other account(s), but when I wanted to set up an online account for my mortgage, I could not see that particular option. You say it's not a great system but I'd be interested in trying it anyway! Thanks,

Click to expand...

Hi HMC. It's pretty easy to setup. Go to the EBS website, on the right hand side under useful links click on 'Your Accounts Online' and follow the instructions from there. It takes a few days to be setup. Online account will basically show you a statement and some account details but it's handy to be able to see it whenever you want rather than once a year.

JL_10 said:

Hi Neddy

What happened when you finished your fixed rate? Did you go straight to variable or did they give you back your tracker?

Click to expand...

Got a letter from them eventually. It reads....

At the end of this month the fixed rate term of your loan will expire. Your repayment will revert back automatically to the current variable rate, you are not required to do anything. The table below illustrates your repayment details. Please note that these figures are based on the applicable variable rate which is subject to change. the repayment amount detailed below is not inclusive of tax Relief at Source.

Then in the table is says Interest Rate is 4.330%.