Coming off fixed rate - AIB quoting ecb + 4.91%

Claire1981

Registered User
Messages
19
We are due to finish a 4 year fixed rate of 3.57% next month. The bank wrote giving a range of LTV and fixed rate options and said if they didn't hear from us we'd default to their (now discontinued) standard variable rate of 4.4%. Looking at the LTV and current fixed rates the standard variable is the best option.

We got another letter today to say that in addition to the rates previously advised we may choose the prevailing tracker rate as a result of the T&Cs of our loan offer. The tracker rate being quoted is 5.16% - ECB of 0.25% plus a margin of 4.91%.

I've looked at the T&Cs of our loan offer and the section dealing with trackers says:

The tracker is made up of two parts:
- the ECB's main refinancing rate and
- the tracker margin as stated in Part 1 of the particulars of offer of the mortgage loan, subject to the following condition:

The bank may adjust the tracker margin upwards if the valuation report values the property at less than the property price/estimate value shown in the particulars of offer of mortgage loan.

The margin quoted in the loan offer is 0% and we haven't provided a valuation report since taking out the loan.

Can the bank now charge such a margin in the absence of the valuation report? We have no intention of providing one but as the terms say they can only adjust the margin upwards under the above condition I am wondering if it's worth challenging them on it or if I'm wasting my time?

Thanks.
 
Should've dug around a little more before posting. Seems there are a lot of people who have had a similar experience. It appears AIB got rid of trackers on 10th Oct 2008? Our loan offer is dated 22nd Oct 2008. The loan offer notes a SVR with a 0% margin, not a tracker. Looks like we probably don't have a leg to stand on having not been offered a tracker at the outset.
 
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