AIB tracker mortgage compensation

babycakesjune

Hi all
Am looking for advice and opinions here.
We took out a tracker mortgage in 2007 on our family home. For some stupid reason we changed to a five year fixed. 2 years later when the variable rate dipped low we decided to buy out of our fixed rate and paid AIB €24,000 to do this. We were put onto a variable rate where we have been since. At no time were we given the choice to go back on a tracker.
I have been on to AIB and they say there is a letter going out to me next week in relation to this and in all probability we will be put back on a tracker. The next stage they say is to look at what time of refund is due and also compensation.
My question is do you think we would get back the 24k we paid to get off the fixed rate.
My second question is do you think we should continue to go through AIB dealing with this or seek legal advice?
Not sure what to expect!
Thanks
BC

serendip

I cannot see you getting your 24k back. You voluntarily entered a fixed-rate agreement, and then voluntarily exited it.

If they didn't offer you your original tracker rate subsequently, then it is possible that your case is covered by the current review of tracker mortgages ordered by the Central Bank of Ireland. In that case you may (as in, it's possible) be offered your original tracker rate, a refund of your over payments and some compensation. (However, I'm not an expert and have yet to read reports of the outcome of that review for mortgage holders.)

I'm also a tracker -> fixed rate -> standard variable rate customer. I got a letter from them last week saying that my mortgage was being considered as part of the review and that they'd be writing to me again "shortly" (who knows what "shortly" means).

I'd be interested to hear reports from other affected mortgage holders.

Tow

Back then, when AIB offered trackers they gave first time buyers am even further reduced fixed rate for the 1st year. At the end of the fixed first year they sent out a letters offering a standard variable and a number of fixed term rates and asking the customer to pick one. They did not offer the tracker on the letter. You had to use your own initiative to go and look for it. I put a complaint into them about this and eventually got a response that they had forgotten to put the tracker option on the letter and would look into including it for other customers...

babycakesjune

serendip wrote: »

I cannot see you getting your 24k back. You voluntarily entered a fixed-rate agreement, and then voluntarily exited it.

If they didn't offer you your original tracker rate subsequently, then it is possible that your case is covered by the current review of tracker mortgages ordered by the Central Bank of Ireland. In that case you may (as in, it's possible) be offered your original tracker rate, a refund of your over payments and some compensation. (However, I'm not an expert and have yet to read reports of the outcome of that review for mortgage holders.)

I'm also a tracker -> fixed rate -> standard variable rate customer. I got a letter from them last week saying that my mortgage was being considered as part of the review and that they'd be writing to me again "shortly" (who knows what "shortly" means).

I'd be interested to hear reports from other affected mortgage holders.

Thanks for your reply. Have not received the letter yet but our mortgage repayments taken by direct debit have changed this month from 2300 a month to 1700 a month which is a massive saving. Will wait to hear!!

Lady Chatterton

Different financial institution OP but this might be worth a read

http://www.irishtimes.com/business/despicable-ptsb-failures-caused-customers-to-lose-homes-1.2299575

Lady Chatterton

AIB/EBS sent out letters to affected Tracker Mortgage customers today.

They say that they will be writing to customers again during December and January to give them details of redress payments and compensation payments due.

Charlie Weston had a piece in the Indo today

http://www.independent.ie/business/personal-finance/property-mortgages/thousands-of-homeowners-to-get-trackers-back-at-last-35231563.html

serendip

In early August, AIB reset my interest rate to the original tracker rate. In late August they wrote stating what they were doing, and that they would be back in touch in November. Three weeks ago, a significant amount was credited to my mortgage account, and another significant but lesser amount was debited on the same day. Weird. Today, I received a letter stating that I would get more information in the next two months.

It seems, from my perspective, that they are working their way through these cases, slowly, perhaps, but steadily. But the endless uncertainty really is starting to drag at this stage.

Dermo09

Hi all,

I have been in contact with AIB a few times with regard this situation. They were expecting to send out the packages this week with all the necessary data, and cheques. Obviously they have a delay of some sorts that means nothing is happening until December / January.

From my perspective, all the relevant mortgages have been reset to the tracker rate, leaving people with smaller monthly payments.

The debit and credit figures on the mortgage account, are the mortgage account being recalculate to what the mortgage should be at. The larger number is the total amount that people have overpaid, and the smaller amount is the interest that has been paid. The difference is the reduction in captial where the mortgage would have been if the original tracker rate was applied correctly. The smaller interest amount is the amount the cheque repayment is due to be. Calculate the compensation % 15% on that (according to papers) plus the soliciter fee, and that should be the total package reimbursed by AIB.

Hope this helps.
Dermot

pfs6767

hi..

I was left with no choice but to sell my house.

I now learn that I should have offered a tracker and aib reviewing my case for compensation.

How can they possibly compensate for the sleepless nights.. loss of house etc?

Dermo09

Hi pfs6767,

That is definitely a case for the solicitor.

I believe that 15% compensation is no way an accurate representation in your case.

Dermot

peteb2

pfs6767 wrote:

I was left with no choice but to sell my house.

Not wishing to be negative but I'm sure there were other issues at play other than just the loss of a tracker here that brought you to that decision

Lady Chatterton

pfs6767 wrote: »

hi.. I was left with no choice but to sell my house. I now learn that I should have offered a tracker and aib reviewing my case for compensation. How can they possibly compensate for the sleepless nights.. loss of house etc?

€25,000 appears to be the standard compensation on offer to people who lost their homes, plus a refund of overcharges. According to AIB, 2,600 customers were incorrectly moved from Trackers and a total of 14 people lost their home.

http://www.independent.ie/irish-news/courts/six-permanent-tsb-tracker-mortgage-holders-win-compensation-of-up-to-25k-34911102.html

Sean O'Rourke (RTE) interviewed David Hall of the Irish Mortgage Holders Association about the Tracker Mortgage Redress scheme during the week. (29/11/16).

http://www.rte.ie/radio1/today-with-sean-o-rourke/programmes/2016/1129/835193-today-with-sean-o-rourke-tuesday-29-november-2016/?clipid=2342837#2342837

peteb2 wrote: »

Not wishing to be negative but I'm sure there were other issues at play other than just the loss of a tracker here that brought you to that decision

With all due respect, I'm sure pfs6767 is acutely aware of the circumstances that led to the loss of his/her home.

It's worth noting that many mortgage holders were overcharged by hundreds of euro each month.

For example: People on the tracker rate pay on average €6,000 a year less on a €200,000 mortgage than those on variable rates.

It is entirely possible that had these customers been charged the correct rates, some of them could have met their mortgage commitments.

Nody

Lady Chatterton wrote: »

It's worth noting that many mortgage holders were overcharged by hundreds of euro each month.

For example: People on the tracker rate pay on average €6,000 a year less on a €200,000 mortgage than those on variable rates.

It is entirely possible that had these customers been charged the correct rates, some of them could have met their mortgage commitments.

If a mortgage holder can't handle a 3% increase on the loan interest rate then they were overleveraged and then some in the first place.

Lady Chatterton

Nody wrote: »

If a mortgage holder can't handle a 3% increase on the loan interest rate then they were overleveraged and then some in the first place.

It was the Boardsie's first post, if I was in his/her position I would appreciate some assistance. It can't be easy to lose your home, no matter what the circumstances.

Someone responding with a one line - 'I'm sure there was more to it than that' in my view is unhelpful. It would hardly encourage anyone to post for a second time.

Nody

Lady Chatterton wrote: »

It was the Boardsie's first post, if I was in his/her position I would appreciate some assistance. It can't be easy to lose your home, no matter what the circumstances.

Which was already given in the post directly below stating get professional advice as this is not something they can ever get or rely on from a random message board.

Someone responding with a one line - 'I'm sure there was more to it than that' in my view is unhelpful. It would hardly encourage anyone to post for a second time.

But it's a fair point even if it's only one line; to claim that there were no other considerations behind the decision than a change of the rate. I'm sorry but to quote the OP "spending sleepless nights" thinking about it I'd argue they probably have enough character and experience to someone pointing out that there is more to the story than the interest rate alone which OP should take into account in the discussion with said solicitor. Then there's nothing else to discuss; OP has already been given the advice they sought (next steps is to speak to a solicitor) and what to think of (what else was going on at the time). There is nothing more there to discuss or to persuade or dissuade the user to continue using boards.

peteb2

Lady Chatterton wrote:

It's worth noting that many mortgage holders were overcharged by hundreds of euro each month.

Thanks for that. I'm acutely aware. I was one of those people

Terence46

Hi thanks for your post. I received a letter in August from AIB explaining that I had been wrongfully moved from my tracker rate and it was reinstated. I had remortgaged in 2011 and was told at that time that as it was a new mortgage the tracker rate could not be continued. Im thrilled that Im paying 150 less per month than previously but I have no idea what to expect in compensation.

The last 5 years have been tough financially. At one point I had to accept a cash gift from my parents and I had to cash in a pension scheme in order to keep mortgage repayments up. On two occasions I contacted the bank to discuss reducing the payments but it all they could offer was to reduce payments for a six month period after which the payments would actually increase to more than they had been previously!

Can I ask if you are referring to a mortgage statement when you refer to the mortgage account? I have not received any mortgage statement. I am not sure whether I should be availing of the offer of payment of legal fees if I were to consult with a solicitor?

Dermo09

Hi Terence,

Are you on Internet banking? A mortgage statement is issued only once a year generally in January for the previous year. You can order from AIB, all the mortgage statements for previous years since the beginning of the mortgage if you wish. From there you can compare the interest rate you did pay vs the interest rate you should have paid to calculate the amount of interest you overpaid since 2011. Your mortgage statement is just a printout of the underlying mortgage account.

With regard the legal fees, from what I understand AIB will be providing some legal fees for all people affected. If you believe the calculation to be incorrect, or the compensation is not sufficient for the struggles you suffered for the period in question, then I would definitely suggest you consult with a solicitor.

I hope this helps.
Dermot

Terence46

Many thanks Dermot, will check it out thanks again

Travelrepublic

Hi All,looking for advise in similar situation to some have received 3 letters from aib and have been restored to tracker rate and refund on account just waiting on letter of compensation which I'm delighted about! However don't know what to do as we did get into difficulties with mortgage and had a lot of stress and illness over same! leading to us being on interest only for long periods also time out of mortgage and eventually an arrangement paying X amount over extra years should I go down the road of solicitors? As I feel I can't do this by myself!

bungaro79

check out http://www.askaboutmoney.com/ for a lot more people in the same situation as yourselves

Travelrepublic

Thank you I'm new to this!

Dermo09

Hi travelrepublic, of course you should go down the solicitor route if you do not feel the compensation you receive is sufficiently adequate to cover the negative impacts from paying a higher mortgage than you should have.

Travelrepublic

Thanks Dermot

pfs6767

peteb2 wrote: »

Not wishing to be negative but I'm sure there were other issues at play other than just the loss of a tracker here that brought you to that decision

pete, the applicable interest rate versus the tracker rate that should have applied was the key factor. not sure what point your trying to make?

Mazzbyrne

Hi All, wondering if you have any ideas on our situation. We got a mortgage with permanent tsb in 2004. We were never offered a tracker mortgage we were given a special fixed rate for the first year then went onto variable from second year on as it was lower repayments at the time.

I've contacted the bank they stated the tracker mortgage compensation does not effect our account as we never had a tracker.

Would anyone know if we have a case for compensation or if we should go to investigate it further. Thanks for any help available.

serendip

Mazzbyrne wrote: »

Hi All, wondering if you have any ideas on our situation. We got a mortgage with permanent tsb in 2004. We were never offered a tracker mortgage we were given a special fixed rate for the first year then went onto variable from second year on as it was lower repayments at the time.

I've contacted the bank they stated the tracker mortgage compensation does not effect our account as we never had a tracker.

Would anyone know if we have a case for compensation or if we should go to investigate it further. Thanks for any help available.

From what you say, it sounds like the bank is correct. You are not affected by the current review. The banks have never been obliged to offer tracker rates to new customers.

peteb2

Mazzbyrne wrote:

Would anyone know if we have a case for compensation or if we should go to investigate it further. Thanks for any help available.

Not on first look. And you would be time barred anyway.