Tracker Mortgage?

cruder

Hi all,
My 5 year fixed rate was over last week, I received a letter from First Active/ Ulster Bank stating that my mortgage will automatically revert back to a tracker mortgage.
When I first took out the mortgage I was never told that it was a tracker mortgage and was advised by my mortgage broker that interest rates were due to rise so I fixed it for 5 years and have been paying a high interest rate and not taking advantage of the ECB's low interest rates.
I think the bank may have an error on the letter they sent me does anyone have any advice or know if I am actually entitled to a tracker. The mortgage was initially taken with Start Mortgages(sub prime) and after a year I changed to First Active.
Any advice would be greatly appreciated,
Best regards,
Cruder

ravima

If you have the letter confirming you are reverting to tracker, fall on your knees and thank God.

cruder

Please god it is, Have you heard of this happening before?

tinkerbell

Back in the boom days, this was on a lot of fixed interest mortgage agreements - you have fixed for X years on X interest rate, after which time you will be placed on a tracker mortgage of X percent above the ecb interest rate. When we came off our fixed rate, we were offered a tracker (by then trackers were no longer available for new customers) - so we're one of the lucky ones.

I'm not sure what your question is - you took out a fixed rate mortgage, you can't just recoup the difference between the fixed and tracker rate for the last 5 years by saying you did what your broker said. If however you're wondering if you are being offered a tracker, jump for joy and take it. The bank have sent you a letter so they should presumably honour it even if it's a mistake. However check your mortgage letter and it'll say what will happen once the fixed period is up.

mr_edge_to_you

Congrats, that's a great letter to get. Sure 5 years the banks couldn't sell enough tracker mortgages. The banks reckoned that interest rates couldn't possibly drop below 4%.

If they sent you a letter it's probably correct. If in doubt arrange a consult with your solicitor who oversaw the original mortgage application. I can understand your concern - in mortgage terms you've won the jackpot and you just need to make sure it's real.

Hardly a relationship issue though!

fungun

Friend of mine got one too recently - thank your lucky stars!!

phormium

That was a very normal type of mortgage, fixed at beginning and reverting to tracker, nothing unusual in it, obviously when you took it out rates were predicted to rise so you were advised to go for fixed and you did. Remember whatever the broker told you, you still signed the loan offer so you are ultimately responsible for whatever you accepted yourself.

Count yourself lucky you are going back to tracker.

Chops82

Same thing happened us. We came off our 5 year fixed in May and got a letter from Ulster bank with all our options & stating that if we didn't get back to them we would automatically put on a tracker. I was sure this was a mistake so called the bank & was assured it was right that it was part of original contract to be offered the tracker after 5 years. We were delighted as it takes over €500 off our monthly payments, sickening part is if we knew enough about the tracker 5 years ago we could have saved nearly €30k. But take it while you can!!!

cruder

Ah I know, It was a tough 5 years and I'm up to my neck in arrears as well so will get a chance now to reduce the arrears while on the tracker.
How long do you think the ECB rate will stay low? and also do you think a tracker is the best option in the long term?

KingPuck01

Any updates? We're you refunded?

peteb2

KingPuck01 wrote:

Any updates? We're you refunded?

Are you serious?? This is a 6 year old thread!! He got offered a tracker after a fixed period. Nothing happened to him. No refund due.

SteM

KingPuck01 wrote: »

Any updates? We're you refunded?

Why would they be refunded? They went on a 5 year fixed rate mortgage and were put on a tracker when it was up. What refund would they be due?

Abba987

KingPuck01 wrote: »

Any updates? We're you refunded?

Are you waiting on a refund ?

KingPuck01

peteb2 wrote: »

Are you serious?? This is a 6 year old thread!! He got offered a tracker after a fixed period. Nothing happened to him. No refund due.

Was his options made clear before a fixed term was selected? If not then he should have been.

Abba987

KingPuck01 wrote: »

Was his options made clear before a fixed term was selected? If not then he should have been.

Spot on

KingPuck01

Abba987 wrote: »

Are you waiting on a refund ?

Fighting the good fight. Much the same case as this one. But I'm going to court.

peteb2

KingPuck01 wrote:

Was his options made clear before a fixed term was selected? If not then he should have been.

For what? They've written to him and offered him a tracker which is less than most of us that were in the same situation.

KingPuck01

peteb2 wrote: »

For what? They've written to him and offered him a tracker which is less than most of us that were in the same situation.

If a tracker option was part of his original contract. Then the benefits of being on a tracker rather than a 5 year fixed should have been made clear. If they were and he still chose a fixed term then fair enough. But I'm betting he was encouraged to go fixed.

peteb2

KingPuck01 wrote:

If a tracker option was part of his original contract. Then the benefits of being on a tracker rather than a 5 year fixed should have been made clear. If they were and he still chose a fixed term then fair enough. But I'm betting he was encouraged to go fixed.

He was advised by his mortgage broker. Not the bank. He sought an engaged the advice of an independent professional. So any come back is against the broker. So no entitlement to anything from the bank.

KingPuck01

peteb2 wrote: »

He was advised by his mortgage broker. Not the bank. He sought an engaged the advice of an independent professional. So any come back is against the broker. So no entitlement to anything from the bank.

His contract was with the bank not the broker. Duty of care still held by the bank .

KingPuck01

KingPuck01 wrote: »

His contract was with the bank not the broker. Duty of care still held by the bank .

You may have a point. Never dealt with a broker before. Are a contracts and dealings done in brokers office. No contact with underwriting bank? If so I see you point .

Zaph

KingPuck01 wrote: »

His contract was with the bank not the broker. Duty of care still held by the bank .

If the customer went on the advice of a mortgage broker and tells the bank they want a fixed rate mortgage, then what more can the bank do? I know a lot of the banks engaged in sharp practices when it came to tracker mortgages and they deserve to pay dearly for what they did to people, but this is basically someone looking for an excuse to have another go at a bank where no reason to do so exists.

KingPuck01

Zaph wrote: »

If the customer went on the advice of a mortgage broker and tells the bank they want a fixed rate mortgage, then what more can the bank do? I know a lot of the banks engaged in sharp practices when it came to tracker mortgages and they deserve to pay dearly for what they did to people, but this is basically someone looking for an excuse to have another go at a bank where no reason to do so exists.

If that's how it went down then fine. "But sir the tracker is a much better product and will save you thousands. No No I trust my fella I want a fixed rate, end of story." What more can the bank do, I agree .

Zaph

KingPuck01 wrote: »

If that's how it went down then fine. "But sir the tracker is a much better product and will save you thousands. No No I trust my fella I want a fixed rate, end of story." What more can the bank do, I agree .

Without a crystal ball the bank couldn't have possibly known that though. Interest rates were predicted to rise so many fixed their rates. The fact that they didn't was fortunate for those on trackers, but they could just as easily have been the ones paying the higher rate if things had panned out as expected.

peteb2

KingPuck01 wrote:

If that's how it went down then fine. "But sir the tracker is a much better product and will save you thousands. No No I trust my fella I want a fixed rate, end of story." What more can the bank do, I agree .

You don't deal with the bank. That's what broker is for.

KingPuck01

Zaph wrote: »

Without a crystal ball the bank couldn't have possibly known that though. Interest rates were predicted to rise so many fixed their rates. The fact that they didn't was fortunate for those on trackers, but they could just as easily have been the ones paying the higher rate if things had panned out as expected.

Again, that fine as long as he was aware of the tracker option when he sign up to the fixed . That is all I'm questioning, not hindsight or foresight.