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

21!..I'm in the 300 too on some of my loans and fspo on others.
I would have further complications with AIB on loans but this helps hugely on cash and balance and with further negotiations needed with AIB
 
Brendan Burgess said:
You will be getting redress based on a tracker margin of between 1.45% and 1.74% depending on LTV.
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Brendan are you able to reveal whether the variation in the rates quoted above was based solely on LTV? I assume the 1.74% rate was for people on a LTV above 80%.

I also assume there was no difference in the rate awarded over time. I.e. it was the same rate for someone who exited on 10.10.2008 as it was for someone who did so on 12.01.09 even though the ECB rate dropped 3 times during that period and AIB in reality would have increased the margin on the prevailing rate each time to compensate.

I've always wondered if AIB could argue that the later you exited the higher your tracker margin would have been. Thanks.
 
Brendan Burgess said:
Hi Mark

It's a very long complicated calculation.

Depending on the date , it could be up to 20% more than the 12% + interest.

However, you will also be getting 15% automatic compensation.

Brendan
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thanks Brendan,

Am I correct in saying that under the tracker redress program the refund amount is paid fully by cheque rather than a capital write down + cheque?
 
No, you are not correct.

Let's say that the interest overcharged was €40,000

Let's say that your mortgage balance today is €200k.

If you had been charged the correct tracker rate of interest ...

Your repayments would have been about €30,000 less
and your mortgage balance would be about €10k less i.e. €190k.

So they will give you a cheque for €30k and reduce your balance by €10k.

Figures are purely for illustration only.


Brendan
 
Hi
Could someone help me with this query I recently found out I was part of the 300 c Based on the time frame we exited our fixed rate Nov 2008. Will the restoration margin be based on time the we exited till jan 2017 when we sold the property or till the current date now. We took out our New mortgage again with aib so will them rates apply in calculating the interest difference.

thanks in advance
 
It will until the end of the mortgage which was January 2017.

But if you had a tracker in January 2017, you would have qualified for the tracker mover product. So they should give this to you assuming you met the qualifying criteria.

That means that they will put you back on a tracker now your old margin + 1%.

They will refund you the difference between this rate and what you paid from Jan 2017 to now.

You might not get this automatically, so you may have to request it.

Brendan
 
Thank you Brendan that makes more sense now so we can expect 12 years interest refund instead of 9 as I assumed all along it was up till jan 2017 and not the current date. I will be sure to ask if it’s not offered when the letters arrive.

thsnks again
 
Latest update from helpline.
Everyone in the 300 category will receive a Cheque and letter detailing what is happening by end of the month.

2 categories of accounts. Open accounts and closed accounts.

Open accounts will receive initial payment of 5k with their letter. The balance due to be paid by end October once full calculations of interest plus compensation plus tracker review complete.

Closed accounts will receive larger payment by end of August with same letter. The larger payment is based of FSPO 12% decision (a capital reduction equivalent). These accounts will go through same review as open accounts and receive another smaller payment by end Oct including a financial advisor/legal advise payment.

Letters have already started to issue so some should get it this week.
 

All accounts will be assessed in relation to return of tracker rate including those accounts that have closed but a new mortgage opened.

This Includes the possibility of applying a tracker rate to a new mortgage account if initial account closed (presuming plus a calculation in the difference paid vs what would have been paid if on tracker from start).

Hope I havnt made a mess of that and it makes sense?
 
we have plans to move to a larger house as soon as an appropriate one comes up in our preferred area.

so the question is, if we get the traditional tracker redress which is refund plus interest plus compensation the bulk of the money will be in a cheque.

are we better off keeping that in cash and using it to put towards the new house and moving the tracker for the full amount remaining on our existing mortgage

OR

paying down our existing mortgage and moving this reduced amount at the tracker rate to our new mortgage, the remaining balance at SVR or Fixed
 
Hi Mark

You will get a tracker at around 1.5%.
You will be able to port this to the new property at 2.5% - they increase the margin by 1%.

While there is some value in a tracker with a guaranteed margin of 2.5% it's not exactly a cheap tracker.

But in any event, when you are trading up, you are better to be cash rich. It gives you lots of flexibility e.g. you might be able to get a mortgage from another lender before selling your existing home.

So you could buy your new home.
Move into it directly from your old home
And sell your old home.

Or you might decide to keep your old home as an investment.

You will be on a mortgage rate of 1.5% so keeping €50k in a current account for 6 months instead of paying it off your mortgage will cost you €375 ( 50,000 @1.5% x 6/12). A small premium to pay for the flexibility.

Brendan
 
thanks Brendan, makes sense on that basis.

I wasn't aware they added a 1% premium to a 'moved' tracker,

keeping the existing home as a investment is something to consider
 
Just found out I am one of the lucky 300! Rang the helpline there again as I hadn’t received any write down or had correspondence from AIB. Cheque for €5k and letter is due to be posted out within the next week! Happy Days! Thanks for all the info Brendan!
 
The story with AIB gets worse, you couldnt write a book if you wish.

I just have got off the phone with AIB about the 300 cohort trying to find out what the percentage tracker will be (im in the cohort). The person on the of the phone is now stating that the tracker will only be applied during the month of September and they have no date as yet. This was even though that is was confirmed by a person in the office TWICE that it was from the first of September.

I have raised an offical complaint and also requested transcripits of all the telephone conversations.

They are unreal.
 
Hi Brendan, firstly many thanks for all you have done for this campaign and still do by keeping us all informed on this board. I am part of the 300 who will be due to revert to a tracker. We had applied for a second mortgage for a new buildwhich will be our PPR and have drawn down 33% of it. As at the time of application we did not have a tracker we didn't apply for a mover tracker. Our new mortgage is LTV of less than 50%. Do you think AIB would now give us the mover tracker?
 
Dolly1978 said:
Do you think AIB would now give us the mover tracker?
Click to expand...

Yes. But it won't be that valuable.

The tracker rate you will be put on from when you broke out will be about 1.5%

The tracker mover product is about 1% higher, so it will be 2.5%

That is a good rate, but not a cheap tracker.

Brendan
 
Anyone know if this trade up tracker offer would include those customers who closed their mortgage and later took out a mortgage with Haven (who as far as I know are owned by AIB)?
 
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