Offered Tracker but at Higher Rate

Yodel12

I took out a tracker mortgage 1.15 + ECB rate in in July 2008 with AIB
I switched to a fixed rate in September 2008 . I broke out of the fixed rate in December 2008 and was only offered the variable rate as trackers had been discontinued.
I further fixed my rate from February 2010 for three years. I was given the option of a variable rate but no tracker when my fixed rate expired. I queried with AIB at this time was I entitled to a tracker as it had been my initial loan offer only to be told I wasn't .
I wrote to AIB in February of this year requesting to be reinstated to my original tracker rate as I felt I was entitled to it as it was my original loan offer.
AIB took until June 2015 to come back to me offering me a commercially priced prevailing tracker rate calculated at ECB rate of 0.05 plus a margin of 3.97%.
That would be 3.97 - my original 1.15 rate equals 2.82% more than my original tracker loan.
AIB also offered me €300 as a gesture of goodwill.
This tracker rate would be higher than my current variable rate.

What does anyone think of this, should I take my "new" tracker and €300 from AIB ??

peteb2

What did AIB actually say in the letter to you? did they say you were originally entitled to it? Or why are they offering you this new tracker?

Yodel12

They never said that I wasn't entitled to my old tracker just that they were offering me this new tracker and €300 if I took it.

Lux23

That's not really a tracker, is it? Can you switch?

whippet

by the sounds of it you gave up your tracker in 2008 and opted for something else .. hence altering your mortgage agreement (if you gave some insight as to why you gave up the original tracker it might make it easier to understand)

Now it seems that you are insisting on a tracker and AIB have offered one, however it is at a prevailing market rate. ECB +1.25% tracker mortgages are costing banks money and it would make bad business sense to offer you one - so unless you can prove that AIB must revert to the original rate I would assume you can only take what they are offering.

Again, the reason behind giving up your original tracker will probably shed more light on the situation

Geniass

Unlikely variable rates are on the way up. You need to look at your original loan contract.

The €300 hush money should not come into it.

tina1040

Look at the thread in rollercoaster.ie. I can't post a link as I'm getting a message telling me I'm a new user. It's a thread from lucybousy with title end of 5 year fixed advice need urgently. It is a long thread with lots of advice.

Lots of people have got their trackers back from following the advice. Don't listen to anyone telling you that you signed up for fixed rate so you knew what you were getting in to.

I got mine back. I had assumed that I would go back to old mortgage after the 5 years on fixed. Nowhere was I told otherwise either verbally or in writing.

Stick with it. It's so worth it.

Yodel12

Thanks for the replies especially Tina... I think i'll see what i can get back.

I gave up my original tracker as the bank was offering a lower fixed rate at the time so I took it but when i went to leave my fixed rate no tracker was offered me as the bank no longer did them.

TorresDaLegend

Yodel12 wrote: »

Thanks for the replies especially Tina... I think i'll see what i can get back.

I gave up my original tracker as the bank was offering a lower fixed rate at the time so I took it but when i went to leave my fixed rate no tracker was offered me as the bank no longer did them.

Sounds like they're trying to sweeten you up so that you will not kick up a fuss. In the time of Feb - June this year another bank was forced to repay €30m to customers who broke their tracker for fixed, and have been returned their tracker + refund of higher interest charged. Why else would they offer you 300 quid & slightly less **** rate!

They may not have sold trackers when fixed rate ended but did they tell you clearly enough what rate you would be getting when it expired?

Yodel12

So TorresDaLegend what is your advice... go back to them and say I want my original tracker back??

murphaph

Absolutely do not give up on this. Forget the 300. It's nothing compared to what you might well be entitled to so follow Tina's advice.

Oreobyrne

murphaph wrote: »

Absolutely do not give up on this. Forget the 300. It's nothing compared to what you might well be entitled to so follow Tina's advice.

I got mine back too. I was initially offered a crap rate too but persisted with the ombudsman and AIB caved. They gave me back my original rate and refunded me from the end of the fixed term. PM me and I'll give you all the info.

Oreobyrne

Oreobyrne wrote: »

I got mine back too. I was initially offered a crap rate too but persisted with the ombudsman and AIB caved. They gave me back my original rate and refunded me from the end of the fixed term. PM me and I'll give you all the info.

Don't accept the offer they've given and dig up your original contract too

joebloggs32

Don't accept it. Something similar happened to me with BOI. I had a tracker and then fixed in 2008. After a 2 years they then only offered variable or fixed. I returned to variable but about a year later i got my tracker back following a central bank review. The reason i got it back was the bank had failed to clearly inform me in 2008 that fixing would mean i wouldn't necessarily return to a tracker. It was buried in the small print but that was not good enough. They also refunded the overpayment of interest to my mortgage.
I would strongly advise you to go through the banks internal complaints procedure and then if you're not satisfied bring it to the ombudsman or the regulator

BrendanBurgess

Hi Yodel

How did you fare with your complaint?

AIB is conductng a review of its tracker mortgages and it's possible that you might get your original rate back. You should certainly be checking to see if you are included in the review.

Brendan