Tracker Mortgage Ulster Bank and AIB interest

[villacoyle]

Hi,

I have requested a mortgage statement from AIB as I feel their current mortgage balance for me is higher that it should be. I have the final mortgage balance from Ulster Bank as of July 21st which was I believe, then supposed to be the AIB opening balance on July 24th. I am aware the AIB will charge interest for the period July 24th to July 31st but does anyone know the situation with the interest for the period July 1st to July 23rd? UB normally applied interest on the last working day of the month but they no long held the mortgage on July 31st. Are AIB only allowed charge interest for the days in July when the mortgage transferred to them? Thanks

 

[RedOnion]

Hi @villacoyle

In terms of the interest for July, if UB hadn't already added it to your balance, the AUB would have transferred capital balance + accrued interest, so they were intitled to add if to your balance.

The while communication and execution of the transfer was poor, and the information hub doesn't address your question.

If you get a closing statement from UB and first months statement from AIB I'd happily take a look if you don't mind sharing redacted information.

 

[villacoyle]

Hi @villacoyle

In terms of the interest for July, if UB hadn't already added it to your balance, the AUB would have transferred capital balance + accrued interest, so they were intitled to add if to your balance.

The while communication and execution of the transfer was poor, and the information hub doesn't address your question.

If you get a closing statement from UB and first months statement from AIB I'd happily take a look if you don't mind sharing redacted information.

Hi RedOnion,

Thank you for your reply. I am actually still waiting to receive a statement from AIB even though I requested it 3 weeks ago.
If they have added interest it seems unfair because it means interest will have been added at the end of July and then again on the 1st of August so 2 amounts of interest will have been added with no mortgage payment in between, (the mortgage comes out on the 3rd of each month)

Hi @villacoyle

In terms of the interest for July, if UB hadn't already added it to your balance, the AUB would have transferred capital balance + accrued interest, so they were intitled to add if to your balance.

The while communication and execution of the transfer was poor, and the information hub doesn't address your question.

If you get a closing statement from UB and first months statement from AIB I'd happily take a look if you don't mind sharing redacted information.

So the figure used by AIB in August when calculating interest would I presume include interest accrued during July but then they applied interest again in advance for the month of August.

Regards,

Pat

 

[RedOnion]

So the figure used by AIB in August when calculating interest would I presume include interest accrued during July but then they applied interest again in advance for the month of August.

There is no double count, but it's counter intuitive when you're used to seeing it on UB statements. And it's not explained in anything I've seen AIB publish as part of the migration.

On 1st August, they calculate how much interest will be due on 31st August for the full month. The calculation takes account of all scheduled repayments for the month ahead.
They add this to your balance in the 1st, but they don't charge you interest on this interest.

If you make any additional repayments, or miss the scheduled repayment, they 'correct' the interest amount.

If you get the statements, I'm happy to work out the calculations for you.