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TRACKER MORTGAGE OFFERED THEN WITHDRAWN

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  • 07-03-2014 12:50am
    #1
    March11
    Registered Users Posts: 128 ✭✭


    Hi all,

    Am posting with a query re the above. In July 2008 my husband got a loan offer for a tracker mortgage, as rates were going up he rang the bank asking to fix the rate and asked what was required to do same. He was advised to put in writing that he wanted to change his tracker to fixed rate. Subsequently another letter of offer arrived 3 weeks later offering a 3 year fixed term followed by 32 years variable rate. As it was a self build, he was then informed that the rate couldn't be fixed until the full amount had been drawn down and he was put on a variable rate until house completion in 2010 at which point he then fixed for 3 years. I suppose the query is - was this right or should he have been able to revert to tracker at some stage having been offered it initially? I would appreciate some advice on this if anyone can assist. Thank you.


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    #2
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    You need to check the 'letter of loan offer' I'm presuming its AIB as they only allow you fix the mortgage when the property is completed. I don't think in July 2008 a tracker rate offered would be very attractive but would still more than likely be better than a variable rate.

    You really need to check your last loan offer as it appears from what you are saying that you got an amended loan offer which stated variable rate.


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    #3
    Oral Surgeon
    Registered Users Posts: 3,240 ✭✭✭Oral Surgeon


    March11 wrote: »
    Hi all,

    Am posting with a query re the above. In July 2008 my husband got a loan offer for a tracker mortgage, as rates were going up he rang the bank asking to fix the rate and asked what was required to do same. He was advised to put in writing that he wanted to change his tracker to fixed rate. Subsequently another letter of offer arrived 3 weeks later offering a 3 year fixed term followed by 32 years variable rate. As it was a self build, he was then informed that the rate couldn't be fixed until the full amount had been drawn down and he was put on a variable rate until house completion in 2010 at which point he then fixed for 3 years. I suppose the query is - was this right or should he have been able to revert to tracker at some stage having been offered it initially? I would appreciate some advice on this if anyone can assist. Thank you.

    I don't think that any offers in advance of the loan drawdown matter…
    For example, I was offered x amount at y% rate. A week later, I drawdown the mortgage and there was a new rate on offer and I had to take it….

    This switch back to tracker is a funny one. As far as I understand; you had to actually be on a tracker, then change to a fixed for 3 years for example, on ending the fixed period the bank must offer you the tracker as well as a new fixed or variable rate as you came from a tracker…. This would be a one time only offer….

    So, were you on a tracker???


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    #4
    phormium
    Registered Users Posts: 3,296 ✭✭✭phormium


    Loan offer is what matters here, did they issue a new one at variable while the house was being built or did you continue with the original tracker rate until you switched to fixed.

    Trackers were ending around that time as new loan offers.


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    #5
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    phormium wrote: »
    Loan offer is what matters here, did they issue a new one at variable while the house was being built or did you continue with the original tracker rate until you switched to fixed.

    Trackers were ending around that time as new loan offers.

    it appears to me the OP was never on a tracker. Sounds like they got a loan offer of one refused it and requested a new offer be issued with 3 year fixed.

    I cant see how the tracker offer has any validity anymore or anyway the OP could expect to get the offer reinstated.


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    #6
    phormium
    Registered Users Posts: 3,296 ✭✭✭phormium


    That is what it sounds like, the new loan offer of fixed though would say what the rate should revert to after fixed term up. On the offchance that it says tracker it would be worth checking. Hindsight is marvellous but would have been better take the tracker and then fix when it was built but c'est la vie!


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    #7
    March11
    Registered Users Posts: 128 ✭✭March11


    When they issued the first tracker loan offer, he asked to have rate fixed, then they re-issued the loan offer for 3 years fixed and the rest at variable rate. Should it not have been fixed for the amount of time he requested, then revert to tracker?


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    #8
    phormium
    Registered Users Posts: 3,296 ✭✭✭phormium


    All depends, bank policy might have been that fixed offers were issued with a revert to variable, different product to tracker. No obligation on bank to issue a tracker if the customer was requesting a different product. Remember back then banks weren't actively trying to stop customers taking trackers, they were offering set products, customers choice at that stage.


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    #9
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    phormium wrote: »
    That is what it sounds like, the new loan offer of fixed though would say what the rate should revert to after fixed term up. On the offchance that it says tracker it would be worth checking. Hindsight is marvellous but would have been better take the tracker and then fix when it was built but c'est la vie!

    The OP already confirmed above the letter says 3 year fixed 32 variable.


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    #10
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    March11 wrote: »
    When they issued the first tracker loan offer, he asked to have rate fixed, then they re-issued the loan offer for 3 years fixed and the rest at variable rate. Should it not have been fixed for the amount of time he requested, then revert to tracker?

    The OP never was on a tracker it appers they just had an offer of one which they essentially refused and requested a 3 year fixed offer instead. Therefore there was no offer to revert to.


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