AIB I switched mortgages from AIB - how much will I get?

[Brendan Burgess]

This was raised in the calculator thread.

If you had a mortgage of €100k when you came off the fixed rate, and you are still an AIB customer, your mortgage today will be written down by €12k and you will get the interest on the €12k from the date your fixed rate ended up until today.

But what happens if you switched from AIB 3 years ago to Bank of Ireland?

It was easy enough in the cases where the bank acknowledged that the borrower should have been given a tracker at 1%. Clearly, they would not have switched to a more expensive lender and so AIB would have paid the difference between the interest actually paid and the interest which would have been charged at 1%.

But the Ombudsman award makes it a bit more difficult.

We won't know until AIB announces their redress programme.

They should pay the interest at the BoI rate on the €12,000 up to date and if they don't, I would expect the Ombudsman to uphold a complaint on the issue.

Brendan

 

[Brendan Burgess]

What if you traded up and switched to BoI as part of that trade up?

Again, you would have had to borrow €12k less so you should get the interest on that as well.

I suspect that AIB will argue this, but again, well worth taking to the Ombudsman.

Brendan

 

[Brendan Burgess]

And what happens if you redeemed your mortgage in full and did not pay any interest?

I would expect that they would pay you interest at the deposit rate from the date you redeemed your mortgage.

You would have had €12k more on deposit.

Brendan