Did the bank make mistake in giving me a Tracker

[Liam]

Hi all,

Fantastic Website.

New to this so please bear with me if I make any mistakes. I remortgaged(payed off old mortgage and got a new mortgage through a broker)in 2008 and was on a fixed rate for 5 years. At the end of the 5 years I received a letter from the bank telling me I was going onto a tracker. I went onto the tracker in 2013 and was delighted as you can imagine.
I have outlined below what was on my loan offer. It does mention the ECB +1.15% which was the rate I went onto in 2013.

Was this a mistake by the bank giving me a tracker in 2013?

I did not have a tracker prior to this.

Thanks for any help. Very much appreciated.

Repayment Details Loan Account

Mortgage Account Number Xxxxxxxxxxx
Loan Type New Fix 4.95% until 290113 - ECB +1.15%
Capital and Interest
Loan Amount €300,000
Interest Rate 4.95%
Interest Type Fixed
Term 40 years
Monthly Loan Repayment. €1436 from 29/01/2008
€1471 from 29/01/2013

 

[Brendan Burgess]

I have outlined below what was on my loan offer. It does mention the ECB +1.15% which was the rate I went onto in 2013.

Hi Liam

It seems clear to me that you were entitled to a tracker on expiry of the fixed rate.

I did not have a tracker prior to this.

Not sure that this is true. What you had was a tracker mortgage, but you chose to fix it for the first 5 years. That was very common.

Brendan

 

[Liam]

Hi Brendan,

Thanks very much for responding. I got a remortgage through a broker in 2008 and payed off my previous mortgage.
I then got a new mortgage that was fixed for the first 5 years and then went onto a tracker( that was a very happy day when I got that letter)

Does this make sense?

I was concerned they made a mistake in giving me a tracker. To be honest I didn't have a clue what I was signing up for in 2008 only that it was fixed at 5 % for the first 5 years.

Thanks very much for replying.

 

[Monbretia]

Common enough way of doing it, it was basically a tracker but you opted for the first 5 yrs fixed, you then revert to tracker as you have done.

Lucky for you, it's a wonder the bank didn't try and renege on the deal as they did with so many.

 

[Liam]

Hi Monbretia,

Thanks for your response.
I realise how lucky I am. It was a big suprise the day I got the letter as I wasn't aware I was on a tracker. Big learning curve financially the last few years..

Thanks again