AIB Good news if your AIB Fixed rate ended between 10 October 2008 and 12 January 2009

Razor160 said:
When I say I came off a 3 year fixed in October 2008 I mean the 3 year fixed term had ran its course I initially took out the 3 year fixed in October 2005
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Hi Razor

I think you must have your dates wrong. There are two problems with your story which are out of synch.

1) The Clause 3.2 was introduced in 2006. So if you fixed in October 2005, you should not have had that in your contract.

2) If your fixed rate ended during the three month period, you should not have had a write down yet.

Is it possible that you have a top up mortgage for which you got the €1,615?

Brendan
 
Hi Brendan
Thanks for all your hard work on this over the years. I believe we meet the criteria as we came off a fixed rate that November (2008) onto a SVR. Under this tracker restoration scheme how is the 15% compensation calculated.
thanks for any feedback
 
Hi Bobby

They will calculate the difference between the interest you were actually charged and the interest you should have been charged.

They will refund this to you ( Split between a cash payment and a reduced mortgage balance)
They will pay you 15% of the overcharged interest.

Brendan
 
Thank you Brendan wasn’t sure how they calculated it we also sold the property in 2017 and took out a new mortgage with aib again so I’m assuming they will have to pay it all as a cheque refund. Am I correct in saying this.
thanks again
 
Yes, you will get a cheque.

If you had the tracker in 2017, you would have moved it to your new house and paid an extra margin of 1%.

You should apply to have this as well.

Brendan
 
Brendan Burgess said:
Split between a cash payment and a reduced mortgage balance)
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Thanks Brendan. My understanding is the cash payment is redress based on the difference between what you actually paid from the date you broke to what you would have paid had you been on the tracker. Can you please clarify how the 'reduced mortgage balance' is calculated? It's straight forward under the Ombudsman scheme but not sure how it operates under the old/redress/300 scheme. Thanks very much.
 
Thanks again Brendan for all your hard work I will certainly look further into it when the letter arrives
 
I broke out of fixed rate on 5th January 2009 (mortgage 400k). I sold house and redeemed mortgage in 2015 and have not purchased another property. Will I be offered a tracker to buy another house?
 
Hi Allymar

Are you in the Prevailing Rate Cohort?
Do you have Clause 3.2 in your loan offer?
Did you get a cheque for €1,615 in 2018?



Brendan
 
Then I would guess that you are in the 300 cohort, but only just.

I don't think you will be offered a tracker for a new property. The condition is that you must buy the house within 6 months of redeeming the tracker.

However, you could make a case that you would have bought another property if it had been on a tracker.

Brendan
 
Wow! I think I maybe one of this 300 Cohort!

I got the €1,615 in 2018, but still haven't gotten the capital write down or heard from AIB yet and I was wondering why not.

I don't have the paper work in front of me, but I did break out of my Fixed Rate early and looking at text messages I have going back to 2008 (yep!) I'm pretty certain I broke out of the mortgage in November 2008.

BTW As far as I remember, there was no breakage fee for breaking out of the Fixed Rate at this point.

BBTW Over the years I've overpaid my mortgage, including a large lump sum at one point, due to the high interest rates, which I wouldn't have done had I been on a tracker. Will that play into the pay out?

Extra info, I still have this mortgage with AIB and still have a significant outstanding balance on it.

Anyway sounds like great news and thanks so much for all your amazing work Brendan.
 
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"BTW As far as I remember, there was no breakage fee for breaking out of the Fixed Rate at this point. " - This is the part that i find distinctly unfair. As i say in my above posts if i had received proper communication from AIB that there was no breakage cost to get out of fixed then i would have done that and been in the 300 cohort but all im getting from AIB is "we left you a voicemail saying there was no breakage costs"
 
Ok so it sounds like we are part of the 300 cohort too. We broke out of our fixed rate mortgage on 15th Dec 2008 and AIB did charge us a breakage cost of €1,673.56 I have the letter stating this breakage cost!
 
brian1 said:
BTW As far as I remember, there was no breakage fee for breaking out of the Fixed Rate at this point.
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You are correct! :)

How do lenders calculate cost of breaking a fixed rate?

hi there i have a 3 yr fixed mortgage with AIB .we are only in year 1 of this agreement. with ECB cutting rates today and going to cut further what can i do here? if i pull out of the agreement here, will there be a penalty? what are the chances of my current bank offering me better rates to...
askaboutmoney.com

Great to see you included in the 300 cohort. You could write your own book on the issue.

You envied people who were on trackers back in 2008

A.I.B.'s Variable Rate

Anyone know what it is going to be after the latest interest rate cuts? AIB said yesterday that they would be passing the -.75% rate in full to its customers. Many thanks.
askaboutmoney.com

Brendan
 
brian1 said:
BBTW Over the years I've overpaid my mortgage, including a large lump sum at one point, due to the high interest rates, which I wouldn't have done had I been on a tracker. Will that play into the pay out?
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Let's say that AIB writes to you next week and says something like the following

1) You have been overcharged €50,000 in interest.
2) We are reducing your mortgage balance by €10,000 - from €300k to €290k
3) Here is a cheque for €40,000

You then say - "What about my overpayments?"

The should then reverse the overpayments.
The €50k overcharged interest (and resulting compensation) won't change.

So they will say, : We will increase your mortgage from €290k to €370k - and here is a cheque for €80k.

Then you can decide if you want to use that €80k to pay down your mortgage or not.

Brendan
 
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