AIB Did you take out an AIB tracker mortgage during 2008?

bungaro

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hi
i''m hoping someone here might be able to help myself and another couple of posters on here in relation to our mortgage with aib. we took out mortgages in mid 2008 (before they stopped offering them in Oct 2008) but were never given a tracker rate which we could have chosen and which we are entitled to under a term of the mortgage loan offer. we are in consultation with the banks but we are probably going to have to contact the financial services ombudsman. we are looking for any rates people were offered around the mid 2008 mark and also if you came off a fixed or variable rate and went back onto a tracker any time since could you please let me know what rate you went on as this might help us back up our case. you can pm the rates if you would not prefer to have them published here.
thanks in advance
 
The banks are not obliged to offer you any particular rate so unless you actually had one to begin with and lost it you won't have a case.

You say that you were entitled to a tracker under the mortgage loan offer, can you expand on this? Did your original letter of offer say you had a tracker.
 
The banks are not obliged to offer you any particular rate so unless you actually had one to begin with and lost it you won't have a case.

You say that you were entitled to a tracker under the mortgage loan offer, can you expand on this? Did your original letter of offer say you had a tracker.

it said once i came off a fixed rate that i was able to choose to go on a tracker rate
 
More likely if such a product was available to offer, which it wasnt by the time you came off. So unless it was in your contract you are getting your hopes up over nothing i fear.
 
I think he has probably worded the original post wrong. AIB has agreed that he was entitled to a tracker rate on expiry of his fixed rate in 2008.

What he would like to know is the following:

Did you take out a tracker mortgage in 2008 with AIB?
What rate did you pay?

Brendan
 
Hi bungaroo

You should trawl through the Askaboutmoney posts from that time.

My first Google search came up with the following.

http://www.askaboutmoney.com/thread...es-for-existing-customers-legal-rights.87175/
July 15 2008: ECB +1.15%
I have an AIB Tracker Mortgage and am on a special discounted rate until October I think the rate is 4.6% I was in the Bank the other day and I just mentioned that I had read that AIB had increased their rates for tracker mortgages and the girl told me that mine would be going up to 5.5% when the discounted period was up.

http://www.askaboutmoney.com/threads/aib-tracker-mortgage.85448/


http://www.askaboutmoney.com/thread...-give-me-my-tracker-back-after-fixing.175869/

I took out a mortgage with AIB in 2007 with the rate in Year 1: ECB + 0.6% and thereafter ECB + 1.1%. I then decided to fix it a year later for 2 years as I thought interest rates were going up. When I came off the fixed rate AIB wouldn’t put me on a tracker rate because “the Tracker Rate is no longer a product offering by the bank and was discontinued on 10th October 2008.”

http://www.askaboutmoney.com/thread...ng-out-tracker-mortgages.176997/#post-1315810

"AIB today announces that it will no longer offer Tracker Mortgages for new mortgage applicants, effective from close of business today, Friday 10th October 2008.

For some time now the Tracker Mortgage product has been under review because of the continuing high cost of funds in the market. Tracker Mortgages are priced off the ECB rate, but funded at money market rates, which, given current market conditions, is unsustainable going forward.

Existing customers with Tracker Mortgages are not affected. Customers who currently have an offer of a Tracker Mortgage, but which is not yet drawn, will still be able to avail of the Tracker Mortgage within the terms of their loan agreement."


AIB Pulls Tracker Mortgages for New Business

 
Hi

See the attached bank flyer showing the rates they were offering back in July 2008 when I took out my mortgage and the following tracker rates apply

upload_2016-8-10_10-47-45.png




Going by the ECB rate at that time of 4.25%, thus the tracker rate on a LTV above 80% but less than 500k mortgage would be 0.85%
 

Attachments

  • AIB Tracker Mortgage Rates June 2008.pdf
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AIB has agreed that he was entitled to a tracker rate on expiry of his fixed rate in 2008.

Not quite.

AIB has agreed that he would have been contractually entitled to opt for a tracker on expiry of his fixed term if such a rate had been available.

I certainly think that AIB's position is open to challenge but it's not that clear cut.
 
Sorry, you should have mentioned that there was a whole other thread on this form the beginning.
 
We had an offer of 2 tracker mortgages in July 2008 of ECB + 1.15%, ECB + 1.50% through a broker. For a new house and to let out our old house (investment). We were aware of the AIB press release AIB PULLS TRACKER MORTGAGE FOR NEW BUSINESS mentioned by Brendan Burgess above. When we went to drawn down the mortgages in November 2008, we were told by the bank that they were out of date. Despite complaining to our solicitor and broker we had to proceed with a new loan offers as we were in limbo.

We had a large deposit on a new house and also a clause in the contract that if we pulled out and the house was sold for less money we would owe the builder the difference. We brought this complaint to AIB in 2014, finally got a response in August 2016 where they suggest they we ourselves requested a new loan offer of a standard variable rate instead of a tracker and they don't know why we didn't proceed with the other offer. In their reply to us the bank did provide us with info we did not know. Following a phone call between the bank and the broker, a new loan offer was requested between them before we knew anything about it.

Unfortunately we left it too late to got to the FSO. We did go to them and they did contact the bank but the bank refused to engage in mediation as it's outside of the 6 years. Contacted the Central Bank but they don't take individual complaints.

We are paying 3.4% and 5% instead of 1.2% and 1.55%

I wonder did anybody else have an offer of a tracker and were denied it despite the press release saying AIB would honour them?
 
I had a similar situation with Bank of Ireland, where they offered me a fixed rate that reverted to a tracker, I did not accept this as a tracker with no fixed period cost less.
I signed up for the tracker within two weeks of signing up, they contacted me with a great new fixed rate offer, but never pointed out, that they removed the clause that ensured it would revert to a tracker once the fixed rate ended as had been the case in previous offers.

I brought my case to the FSO, they found in favour of the bank stating that I had been told to seek legal advice and that it was my own fault for allowing Bank of Ireland to trick me.

I got my mortgage in October 2008 our cases are similar, in that it was that point in time that the banks knew that trackers were really bad business for them, and they were willing todo whatever it took to get customers off tracker mortgages.

All we can hope is that review will look at cases like ours.

I would still send your details to the central bank, there will be many others who they done the exact same thing to.
They are not going to hold there hands up and do the right thing. There is no doubt in mind that around that time period all the banks done what they could to get customers on svr rates.
 
I would say you should be included in the review by Aib
Then if not successful you can still raise it with FSOB afterwards.

The central bank has said the 6 year rule does not apply in light of the bank behaviour and the investigation
 
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