Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Tracker Mortgage Refund

  • 27-08-2018 6:58am
    #1
    newdirection?
    Registered Users Posts: 5 ✭


    Hi there. Would be interested in hearing from others that recently got a refund from their bank re tracker mortgage scandal. Thanks


Comments

  • #2
    dudara
    Registered Users, Registered Users 2 Posts: 33,518 ✭✭✭✭dudara


    Moved to Banking & Insurance & Pensions


  • #3
    peteb2
    Registered Users, Registered Users 2 Posts: 1,813 ✭✭✭peteb2


    What exactly are you wanting to hear. Post seems a little vague.


  • #4
    newdirection?
    Registered Users Posts: 5 ✭newdirection?


    We received an amount from Bank early this summer because of tracker mess. We didn’t even know we were entitled to!! Happy days..... however we finally received the details of payment last week and has us curious. Has anyone followed up with their banks re this breakdown. Has anyone contested it? Don’t get me wrong we aren’t being greedy just want to make sure we are getting what we are entitled to. Thanks


  • #5
    CeilingFly
    Closed Accounts Posts: 3,378 ✭✭✭CeilingFly


    It follows a set formula as given by the central bank and so far I haven;t seen anyone that had any issue with it - some may deserve more compensation if they lost their house or needed to obtain higher interest finance to keep up repayments, but generally 95% of people have been very happy

    Due to the way mortgage payments are calculated it is not as simple as working out the overcharge and refunding that.

    They had to work out what the current balance should be at the time the correct rate was applied if the correct rate was applied at all times. Then the work out the refund due and amend the capital balance.

    In addition they paid a compensation amount that ranged from 10% to 20% and also what bis called Time Value Money (TVM) which is interest on the overpayment.

    So you had 4 amounts

    The Overcharge, the difference between the capital balance before the correct rate was reapplied and what it should have been of the correct rate was applied at al time, compensation & TVM.

    Example

    230k mortgage taken out 2006, move to fixed for 3 years, then moved to standard variable rate instead of tracker at end of 2009.

    Balance at Feb 2018 145,000. If correct rate was applied balance should be 135,000.

    Overpayment 40,000 of which 30,000 is overcharge and 10,000 is a capital reduction

    Compensation 6,000

    TVM - 2500


    Result - mortgage balance reduced from 145k to 135k, + cheque for €39,500


    If there were missed payments or payment holidays or interest only periods at any stage, these were taken into account too.

    Going forward, monthly payment reduced to approx 1,000 from 1250


Advertisement