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

Brendan Burgess

Brendan Burgess

Founder
Messages
53,961
Update : End date changed to 12 January - Brendan


1) You will be getting an interest refund based on a tracker margin of between 1.45% and 1.74% depending on LTV.

2) You will be getting 15% of the interest refund as automatic compensation for the stress and you can go to the Appeals Panel if you think you deserve more.

3) You will be getting a tracker at this rate for the remainder of the term.



If you still have your mortgage with AIB

Under the Ombudsman 12% scheme,let's say you get a €20k capital reduction and €10k interest refund.

If the redress arising from giving you a tracker is more than this, you will be paid the extra.
If the redress is less, you will get the Ombudsman scheme.

Under the "tracker restored" scheme, the redress would usually be €10k capital write down and €20k interest refund.

So you will get the refund in cash per the Central Bank scheme and you can then pay that off your mortgage if you wish.



If you have cleared your mortgage

The same principle applies, but in most cases, the refund due under the Ombudsman Scheme will be higher than under the tracker restored scheme.
 
Last edited:
Hi Brendan


we came off fixed in dec 08 - but then moved to another bank in jan 20’. If we are one of the 300 is there any guidance on what will happen to us seeing as we have moved ? Do we just get the 12pc + interest via cheque by end of August or do you envisage more ?
 
Last edited by a moderator:
Sambo123 said:
we came off fixed in dec 08 - but then moved to another bank in jan 20’.
Click to expand...

You will get the redress calculated on the restoration of the margin.
You will get 15% compensation.

If you switched for a better rate and not for a trade up, then you will be able to make a case that you would not have switched had you been on the right rate.

They will probably offer to take you back at the tracker rate.

Brendan
 
Brendan

Sorry now, I just want to clarify one thing?

I am one of those people whose fixed rate ended between 10.10.2008 - 5.01.2009,

Will I be getting the following;

1).12% capital reduction,
2). interest rate reduction up to August 2020 and
3). a tracker rate for the remaining term of the mortgage?


As always, thanks in advance
 
Hi Balfour

1) They will calculate the overcharge based on giving you a tracker from the date you finished.
2) The interest overcharge should be a bit higher than the 12% + interest on the 12% , so they will give you the higher figure
3) Let's say your total interest overcharge was €40k. This would usually result in a cheque for €30k and a balance reduction of €10k.
4) They will give you 15% of the €40k or €6k as compensation for stress.
5) They will put you on a tracker of about 1.74% for the remaining term of your mortgage.

Brendan
 
Fixed for 3 year years at 4.9% in September 2007. Opted out myself in November 2008 for better variable rate of 4.5% as thought rates were going to keep dropping. . Looks like I am in 300 cohort for 12 week window.

Fixed again for 3 years in 0ctober 2009 at 3.19%. I had always thought I was included in 5,600 cohort from 2012 as I should have been offered tracker rate then and not 2008 as I opted out myself
 
Hi,
Same as myself came of a fixed rate in nov 08 and onto a slightly lower variable rate at the time. Bit confused now how this might change the situation as we moved home back in 2017 and took out a higher mortgage albeit with aib again. I might be missing previous answers To this Any help greatly appreciate.
thanks
 
Brendan Burgess said:
AIB has updated its webpage

Following intervention by the Central Bank, c. 300 of the prevailing rate customers, who rolled off their fixed rate very shortly after tracker rates were withdrawn on 10 October 2008, were reviewed and deemed impacted under the Tracker Mortgage Examination. We will write to these customers in August regarding both the Tracker Mortgage Examination issue and the FSPO decision. Payments to these customers will also commence in August 2020. Customers will receive the higher of the two payments, either the FSPO payment or the Tracker Mortgage Examination payment.


Frequently Asked Questions

My fixed rate was due to finish in 2010, but I broke out early before 5 January 2009. Am I in the 300 cohort?

Yes. AIB has confirmed this.

Why are these guys getting trackers?

The Central Bank insisted that had AIB complied with the terms of their contract, they would have increased the tracker rate instead of withdrawing it in October 2008. However, based on the experience of previous changes to tracker rates, it would have taken AIB 12 weeks to implement that change.

So the Central Bank insisted that AIB give all those customers the tracker rate which would have existed during that 12 week period


Brendan
Click to expand...

this is what we argued when we spoke with BDO.

We broke out on the 13th of October 2008, yes 13th of October, THREE days after they stopped offering trackers. We used the paper work issued to us that showed the racker at roughly 5.9% which would have given us a tracker of 1.65%. If was rejected by BDO, but now AIB are giving it to us, BDO have a lot to answer for.
 
Last edited:
Thanks for the update Brendan. I was in the initial 5900 cohort but have not yet received my write down. I was in a fixed rate but broke out of it in November 2008 to go on a variable. I’m hoping this means I’m in the 300. Thanks again
 
Yes, you should be in that 300 cohort and should get redress under the old scheme which will include getting a tracker for the remaining term of your mortgage.

Brendan
 
We also haven't had the Capital Reduction yet. I've checked back and I requested a break from Fixed Rate on 8th December 2008 (by fax as a follow up to phone calls). Hopefully this means that I'm in the 300 - I don't have statements from back then to confirm when the rate changed.

Will the Helpline tell me if I'm in the 300?
 
I rang there and they were able to confirm I did break during the 12 weeks that brendan mentioned but they didn’t go as far as to say that it meant I was part of the 300
 
Great news Brendan and well done. Any indication whether the Bank will deduct the amount saved by those who broke off the fixed to a lower variable within the 12 week period ? Thanks
 
Sambo123 said:
I rang there and they were able to confirm I did break during the 12 weeks that brendan mentioned but they didn’t go as far as to say that it meant I was part of the 300
Click to expand...
Did you get the capital write down then yet?
 
Just did a bit of maths the 12% write down is roughly the same as been put on a rate of 1.45% ( I went off my fixed rate in 2011)
 
You will also have the interest back, (not sure if you included that,) and an added bonus of 15% compensation, plus tracker for the rest of the term of the mortgage.
 
aibredress said:
can I ask, if the 12% + 12% is worked out to be more, will we get the 15% compensation on top of this, or is it the tracker redress with various percentages, plus compensation?
Click to expand...
@Brendan Burgess I would like to know this also. If the total amount of the Ombudsman decision (12% write down, plus refund of interest on that write down) is more than the redress based on the "tracker restored" scheme, will the c300 people get the option of one or the other. In other words if the Ombudsman decision is higher, do the c300 people not get the 15% compensation and their tracker restored? Thanks
 
You must log in or register to reply here.
Back
Top