Mortgage rate over charge

herlihyd

Hi guys, got a recent letter from UB along with a cheque saying they over charged me on the mortgage interest rate from 2012, they mentioned a sub account, which i dont understand, i took out a mortgage in 2005 n then bought an ex out in 2007 which i had to apply for a whole new mortgage. I wanted to continue in with my tracker in 2007 but they told me i woukd not get my new mortgage with a tracker n only offered me a fixed.

herlihyd

Hi guys,

Regarding the UB tracker issue on my loan acceptance it says subject of the tracker mortgage. Today i got a cheque of 250 euro as a goodwill offer as UB said it was a typographical error. What does this even mean

tvjunki

Your first mortgage is sub account 1. If you got a top up mortgage then that would be a sub account 2 and so on. If you were paying them at the same time you would see on your yearly statement two rows sub account 1 and sub account 2 in the figures. The first sub account would be repaid at the same time.

UB had a few issues with their system calculating repayment and interest. They must have checked you account as part of the process of reviewing all tracker mortgages. Part of the €250 would be compensation and also put you in the postition you should have been if they had not made an error. Your repayment could have been higher by a few cent than expected. You may find you balance could be less than it was. Check your online account. The letter with it should should the figures per month to what is should have been to what you were charged. You can get someone to check it or you can work it out yourself if you want to make sure. If you are happy to accept their workings then sign and cash the cheque.

macvin

You would only be entitled to a tracker is a specific tracker rate is mentioned in the contract. EG a rate that will be "ECB refinancing rate +1%"

When you "buy someone out" or do a mortgage "top-up", these are totally new loans independent of other loans and only the paperwork for the specific loans matters.

Dublenguy

Does anyone know what the interest rate on a tracker mortgage is? Mine was 0.75%. Does that mean 0.75% or are there extra’s added?

I’m working the interest out at 1.1%, but I am no expert. Tried contacting Ulster bank but just end up on hold which is not surprising as they are bailing out.

AnRothar

https://www.boards.ie/discussion/comment/119424560#Comment_119424560

Tracker mortgages follow (track) the ECB rate by a given amount.

What does your contract say?

Dublenguy

Good advice, found the contract eventually, the tracker is ECB plus 0.95%.

With APR this is 1.1% and I get 0.1% off as have a U First account which gives 1.0 %. This works out when I do the calculations.