Tracker mortgage

beechwood55

Eire Go Brach wrote: »

Could someone tell me the dates that this applies to?

I got my mortgage in 2006. Fixed for 2 years. Offered and took tracker in 2008. 1.25 over the ECB. I’m probably fine. But might as well jump on the bandwagon. Tracker to high etc.

So are you saying that you have been on a tracker since 2008 at a rate of ECB + 1.25%.

CeilingFly

Eire Go Brach wrote: »

Could someone tell me the dates that this applies to?

I got my mortgage in 2006. Fixed for 2 years. Offered and took tracker in 2008. 1.25 over the ECB. I’m probably fine. But might as well jump on the bandwagon. Tracker to high etc.

Standard tracker rate was 0.95% to 1.25% depending on bank and loan to value.

Thank your lucky stars you have a 1.25% tracker

Eire Go Brach

beechwood55 wrote: »

So are you saying that you have been on a tracker since 2008 at a rate of ECB + 1.25%.

Yes. After posting I done some research. Looks like I’m in in the clear. Sure was worth looking into.

Thank my luck star I was not conned by the bankers more like it.

victor8600

jarvis wrote: »

I have sent it off this week to the financial ombudsman but I'm inside if I do actually have a case and if I would be classed as one of the people who're part of the tracker mortgage scandal.

In the news today, "[All ]Permanent TSB customers returned to correct tracker mortgage". Have you received a reply from PTSB or the financial ombudsman?
I called PTSB a week ago and they said that that my original tracker was "a promotion to attract new customers" and they had no obligation to return my mortgage to it after a period on the fixed rate. I need to look into this in more detail, and get the original contract from them or the broker.

Superniamh

Can anyone tell me the meaning of a "variable annuity"? Our mortgage documentation from
Aib from 2008 states that once our fixed rate ends our mortgage will revert to a variable annuity. Could this be either the standard variable rate or a tracker? It's all very confusing!!

CeilingFly

Superniamh wrote: »

Can anyone tell me the meaning of a "variable annuity"? Our mortgage documentation from
Aib from 2008 states that once our fixed rate ends our mortgage will revert to a variable annuity. Could this be either the standard variable rate or a tracker? It's all very confusing!!

That's a standard variable rate.

Only if you originally had a tracker or an entitlement written in a contract would you possibly be entitled to one back.

By mid 2008, trackers were effectively gone from the market (some banks ended them earlier). So if your mortgage started in 2008 it is higly unlikely that you could be entitled to a tracker as the options was not there.

Superniamh

CeilingFly wrote: »

That's a standard variable rate.

Only if you originally had a tracker or an entitlement written in a contract would you possibly be entitled to one back.

By mid 2008, trackers were effectively gone from the market (some banks ended them earlier). So if your mortgage started in 2008 it is higly unlikely that you could be entitled to a tracker as the options was not there.

Thanks ceilingfly, I've just noticed form an earlier mortgage letter of offer on the first page that we were offered the following:-

Loan Type Interest rate/description
Variable annuity Trackerhome LTV >80%<€500k

Rate Margin
3.5% 1.1%

I would attach a photo if I knew how!!

This is our original mortgage offer! However shortly after, we realised we required additional funds to build and when those letters of offer arrived in 2008 the wording is different!

It states that at the end of our fixed period of 3 years our mortgage will revert to a
Variable Annuity 5.25%.

Even more confused now!!

I think I'll ask for my docs from AIB!!

Tenigate

Superniamh wrote: »

Thanks ceilingfly, I've just noticed form an earlier mortgage letter of offer on the first page that we were offered the following <snip>

It may have been your original offer, but you did not accept it.

Simply by allowing the offer to lapse, or by rejecting the offer, or by changing the terms (as in your case), that offer is gone forever. so that letter means very little.

Your only hope is to say you were lead to believe by the bank representative that you were taking out a product with the same terms as the original "offer" prior to asking for the increased amount - and the bank sold you a completely different product.
(The bank may argue that since your original "offer", the tracker product was discontinued or did not apply due to the amount you were looking for, or the term)

If you went through a broker, you have even less of a leg to stand on with the bank - you'd need to argue that your broker made a mistake or mis-sold you the product.

Anyway, there is no harm in phoning AIB, ask them if you are on a tracker and is the rate ECB+1.1%. If not, ask them for copies of all documents on your file.

Superniamh wrote: »

Also, in our T&Cs attached to the later 2008 letter it states that at the end of any fixed rate period we can choose between another fixed rate, a variable interest rate, or a tracker rate!!

OK just saw this.. trying to piece together snippets of information you're scattering across two different threads....

Variable annuity just means you pay interest and capital and the rate can vary. It doesn't mean it's not a tracker.

The bit in bold is the relevant bit. If your new contract says you were allowed to revert to a tracker, the bank should have offered it. It appears they did not, or if they did you decided not to accept it.

Phone your bank and find out what rate you're currently paying, and whether they offered you a tracker at the end of the fixed period.

CeilingFly

Superniamh wrote: »

Thanks ceilingfly, I've just noticed form an earlier mortgage letter of offer on the first page that we were offered the following:-

Loan Type Interest rate/description
Variable annuity Trackerhome LTV >80%<€500k

Rate Margin
3.5% 1.1%

I would attach a photo if I knew how!!

This is our original mortgage offer! However shortly after, we realised we required additional funds to build and when those letters of offer arrived in 2008 the wording is different!

It states that at the end of our fixed period of 3 years our mortgage will revert to a
Variable Annuity 5.25%.

Even more confused now!!

I think I'll ask for my docs from AIB!!

Looks like you had an offer of a tracker and then you made a new application (an increased amount would require a new application) and at the time of that application, the trackers were no longer offered.

No harm in chekcing all the paperwork, but I'd assume that an increeased amount would entail a new application. Pity they didnlt point it out to you that trackers were gone - but back then the trackers were a similar rate to standard variable.

edit - in the post in the other thread you say that the fixed rate instruction claims you will got to variable, fixed or tracker.

That could be avaluable piece of paper.

You need to contcat a financial specialist. Padraic Kissane of Kissane Financial Services is the specialist in this - google him and send him details. It may take a few days for response as he's very busy.

Superniamh

CeilingFly wrote: »

Looks like you had an offer of a tracker and then you made a new application (an increased amount would require a new application) and at the time of that application, the trackers were no longer offered.

No harm in chekcing all the paperwork, but I'd assume that an increeased amount would entail a new application. Pity they didnlt point it out to you that trackers were gone - but back then the trackers were a similar rate to standard variable.

edit - in the post in the other thread you say that the fixed rate instruction claims you will got to variable, fixed or tracker.

That could be avaluable piece of paper.

You need to contcat a financial specialist. Padraic Kissane of Kissane Financial Services is the specialist in this - google him and send him details. It may take a few days for response as he's very busy.

Thanks Ceilngfly and Tenigate!!

I have requested the whole file from AIB and have been in touch with Padraic Kissane, who has been really helpful!! They felt we might have a case based on clause 3.2 in our terms and conditions which states that at the and of any fixed rate period we can choose between the three options as stated above. They want us to forward our whole mortgage file when it arrives.

I also sent aib a query on Tuesday about it and we have just received a letter today from them stating we are included in their review!!

I'm still thinking there's something very peculiar in the wording of both 2007 and 2008 offer letters in that variable annuity seemed to have actually meant tracker in 2007. Then the 2008 contract letter on which we drew down the loan states that we will revert to this "variable annuity".

I guess I can't really be certain until we get the signed copies from the bank as we only kept the unsigned copies ourselves.

irish bloke

Folks,

Does anyone know if any of the banks are permitting you to transfer your remaining current tracker mortgage in full over to a new property?

They all seem to offer this service with different penalties etc..

Also do you think they will be forced to allow this to happen especially in light of the current scandal.

Thanks..

CeilingFly

irish bloke wrote: »

Folks,

Does anyone know if any of the banks are permitting you to transfer your remaining current tracker mortgage in full over to a new property?

They all seem to offer this service with different penalties etc..

Also do you think they will be forced to allow this to happen especially in light of the current scandal.

Thanks..

Why?

You'd be ending one agreement and starting a completely new one.

Some will allow you transfer remaining tracker balance at a premium. But that's their own offers and there is and there will be no direction ftom central bank to make them transfer a rate.

irish bloke

CeilingFly wrote: »

Why?

You'd be ending one agreement and starting a completely new one.

Some will allow you transfer remaining tracker balance at a premium. But that's their own offers and there is and there will be no direction ftom central bank to make them transfer a rate.

I was referring to keeping the existing balance of the current tracker.

Example:

• €300,000 left on current tracker
• New house €400,000
• keep existing tracker agreement of €300,000 and have new agreement on the €100,000

I don't see why I cant move the tracker without penalty.

CeilingFly

irish bloke wrote: »

I was referring to keeping the existing balance of the current tracker.

Example:

• €300,000 left on current tracker
• New house €400,000
• keep existing tracker agreement of €300,000 and have new agreement on the €100,000

I don't see why I cant move the tracker without penalty.

A mortgage loan is attached to a specific property. Once that property is sold / transferred to a different person or entity the mortgage is expunged. Effectively it no longer exists.

Think the otehr way.

You have 300k left on a mortgage at 4.25% and wish to sell and move to a new property and take a new mortagge out at a "new borrower" rate of 2.99% - thankfully the bank can't force you to stay at 4.25% as its a new loan under new conditions and for a new term.

Some bank have "tracker mover products" but that's a marketing name. Its still a new loan, but would have different terms to the balance of the new purchase price.

e.g. Bank of Ireland will allow you 5 years on the transfer amount at your tracker rate + an extra 1%. Not a great deal

AIB do similar but for the full remaining tracker term. KBC will discuss options. Not sure about Ulster or PTSB.