AIB How AIB is dealing with split mortgages in the Prevailing Rate cohort

L

ladybirdy2020

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I spoke to the bank today, they took note of all my queries and they will came back to me next week.

1. Regarding the written off, they are still working on the calculations of my case and the 24k it seems to be a first payment. But they couldn't say the base and I will have to wait till next week or the letter.
2. Regarding this money be considered a lump sum, and therefore eligible for a further 30% amount as per my contract. They will look into it and revert back on Monday. Fingers crossed.

Date came off fixed rate : 01/09/2011
Balance when coming off fixed rate: not sure (bank doesn't say) but approx. 327k
Date mortgage split: 4th August 2015
Active part when split: 196k
Amount warehoused: 108k

Balance on active part just before write down: 174k
Amount written down off active part: 24k

Balance on warehouse before write down: 108k
Amount written down off warehouse part: 0
 
Hi Ladybird

That is great thanks. Now I can see what they are doing.

Balance when coming off fixed rate: not sure (bank doesn't say) but approx. 327k - Total writedown should c. €39k

Balance on active part just before write down: 174k 61.7%
Balance on warehouse before write down: 108k 38%
Total 282k


Amount written down off warehouse part: 0 to date.
Amount written down off active part: 24k

€24k represents 61.5% of €39k
 
So to work out your own figures

1) The total write down will be 12% of the balance at the end of the fixed rate.

2) If your current warehouse is 30% and your current active mortgage is 70% of the total mortgage before the write down, they will split the write down in those proportions. That is, 30% of the write down will be set against the warehouse and 70% against the fixed rate.

3) Presumably they will work out the interest paid on each separately and refund this to you.


Brendan
 
Last edited:
Date came off fixed rate : Sept 2011
Balance when coming off fixed rate: approx 765k
Date mortgage split: Oct 2014
Active part when split: 435k
Amount warehoused: 285k (70k written off in Sept 2015 - a further 5% written down every 5 years if terms met)

Balance on active part just before write down: 387k
Amount written down off active part: 55k

Balance on warehouse before write down: 202k
Amount written down off warehouse part: 35k

My assumption regarding the interest is that they will calculate interest refund on the entire 90k interest for period 2011-2014 (~12k). They will then calculate interest on 55k element from 2014 to date (~14k) - a total possible interest refund of 26k, that being 29% of the writedown.
 
Date came off fixed rate : Sept 2011
Balance when coming off fixed rate: approx 765k -12% = €91,800


Balance on active part just before write down: 387k
Amount written down off active part: 55k

Balance on warehouse before write down: 202k
Amount written down off warehouse part: 35k





My assumption regarding the interest is that they will calculate interest refund on the entire 90k interest for period 2011-2014 (~12k). They will then calculate interest on 55k element from 2014 to date (~14k) - a total possible interest refund of 26k, that being 29% of the writedown.

That looks correct.

 

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Good morning brendan
I received a further reduction on the parked mortgage this morning the have said lender reduction any idea thanks.
 
Anna

Sorry your post is garbled and meaningless.

You will need to provide full details of the history for any meaningful answer.

Brendan
 
I think I know what its about. I called the bank. I have received a further reduction in the parked account by the lender today. In contract, if a lump sum is lodged in the first 5 years, we get a 30% additional by the lender. So the lump sum is 70% and the 'lender reduction' should be equivalent to the 30%.
 
Ladybird

Thanks for that.

That is a huge incentive for people to pay the cash refund off the warehouse as well.

Brendan
 
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