AIB AIB has just included me in the 300 Cohort - November 2021!

Brian C

Registered User
Messages
30
Hi Brendan, I have been receiving the monthly holding letter (in response to my compound interest complaint re my BTL mortgage) from the bank advising me that they would revert in due course. Three or four weeks ago I received a call from a bank official saying that the matter would be dealt with pre Christmas. Yesterday I received another holding letter re my complaint. However, separately I received two long letters plus substantial cheques re my BTL mortgages. It would appear that the bank has been doing its own review of accounts and they have now decided that I qualify for a tracker mortgage. The cheques relate to backdated calculations to when I should have been allowed a tracker. They have also given me a tracker rate going forward (1.9%), another big saving. The odd thing is that I never corresponded with the bank re any of this. I always thought I had missed out on being part of the 300 cohort by a few days, but I wasn't really sure.

Obviously, this added to the previous 12% write down etc is a great windfall. However, I am sharing the news as it might be relevant to others. Also it may open up an opportunity for others in the 5,900 group. I left the letter at home but will publish it on Monday. You will probably understand more than I can, especially the calculations which are quite detailed. Hopefully others may start receiving similar letters.
 

Brendan Burgess

Founder
Messages
45,739
Hi Brian

That is great news.

Could you clarify a few issues so that they can be helpful to others.

1) Have you two mortgages - a buy to let and your family home or is it two mortgages on the one buy to let property?
2) What are the relevant dates which got you into the 300 group?

Brendan
 

Brian C

Registered User
Messages
30
Hi Brendan, I have two buy to let mortgages.

I fixed the first three years of each mortgage and they were due come off the fixes on 14th Sept'09. While I don't remember all the details, from letters that I have from AIB I requested to come off the fixed rate early as the variable rate was a bit lower. In January'09 the bank agreed to this and I was put on a variable rate for both loans.

Please find attached a copy of the letter I received last week from AIB re one of these mortgages. I'm not sure exactly how I qualified for the additional payment. Any feedback would be appreciated. Does the methodology for calculating the payment look similar to previous 300 Cohort payments?

Brian
 

Attachments

  • doc06673220211129090139.pdf
    401.7 KB · Views: 112

Brendan Burgess

Founder
Messages
45,739
Hi Brian

Yes, that is the exact same methodology.

1638178644633.png

What tracker rate did they base the calculations on? (I don't remember seeing one for a buy to let before, so I don't know what rates they were using.)

In almost all the cases I have seen, the amount calculated under the 12% write down + interest methodology, was higher than the amount calculated under the refund of tracker methodology.

You say you got a substantial refund? I wonder why. Were you in deep arrears by any chance?

You still can seek additional compensation. If you were in arrears or under pressure to stay out of arrears and if you forewent other normal living expenses to meet your mortgage, you could claim additional compensation.

I am assuming you still own both properties.

Brendan
 

Brendan Burgess

Founder
Messages
45,739
What I think has happened here is that your complaint about simple interest triggered a review of the file and they discovered that you should have been in the 300 Cohort.

Fair play to them for putting you in without prompting from you.

The simple vs. compound interest argument is no longer relevant to you as the 300 Cohort amount exceeds this substantially.

Brendan
 

Brian C

Registered User
Messages
30
Hi Brendan, the tracker rate is 1.9% (ECB rate 0% plus 1.9% margin). Yes I still own both properties. Re the level of refund and the earlier 12% etc, ironically I have benefited from having large loans with the bank (a slight crossover to another post - the more you owe the bank...). I was never in arrears, only in massive negative equity and struggling badly to make the monthly payments to the bank. Re additional compensation, I'll have to think about that.

Hopefully, I'm not the only person who has/will be "upgraded" like this.

Brian
 

Brian C

Registered User
Messages
30
what date did your fixed rate end do you know?
Originally my fixed rates were due to expire on 14th Sept'09. However, it looks like I broke them in early/mid January'09. I can't remember this but I do have correspondence confirming it happened.
 

Brian C

Registered User
Messages
30
Brendan, while the bank has supplied summarised figures showing how they arose at their final refund figures, I can't verify the details. Am I entitled to receive the full, detailed workings making up every figure that they have presented to me? Can they deny such a request?
 

S0@p0per@

Registered User
Messages
14
any way to see if it was after Jan 12th ?! I'm 15th Jan and arguing my case, as I paid to breakout , but requested to do so Jan 5th. I have not been included in 300 cohort, thus far.
 

Brian C

Registered User
Messages
30
any way to see if it was after Jan 12th ?! I'm 15th Jan and arguing my case, as I paid to breakout , but requested to do so Jan 5th. I have not been included in 300 cohort, thus far.
All I can say is that the AIB letter for one of my BTL loans confirming that it have moved to a variable rate was dated 15th Jan'09. The other was dated 21st Jan'09. The exact date of change wasn't mentioned. I would ask AIB to confirm that your loan will be reviewed under the Tracker Mortgage Examination process. It seems that this helped the bank adjust their position re my loans.
 

Brian C

Registered User
Messages
30
Hi Brendan, I am in the process of drafting letters looking for a higher level of compensation than I was recently paid when I was added to the 300 cohort. I note from a separate thread that you have covering how the compensation for the 300 cohort is calculated, that the minimum compensation figure is 15%. In my case the compensation was calculated at 7.5% of the overcharge plus 7.5% of the TVM (or an appropriate minimum amount). When I did a rough calculation the compensation is mainly the first 7.5%, with the 7.5% re the TVM contributing a very small amount. So it is not 15%.

My question is should the bank have paid as a minimum 15% of the overcharge?

Also, in drafting a letter do you think it is worth stating that I want "the minimum 15% " plus more for other (to be detailed hardships) or should I just start out by stating my case and demanding substantially more?

Thanks
Brian
 

Brendan Burgess

Founder
Messages
45,739
Hi Brian

1) They calculate how much you would get under the Ombudsman Scheme which is

  • A write down of 12%, plus
  • the interest charged on that write-down.

2) They calculate the total redress under the Central Bank Scheme which is , in simplified terms

  • the interest overcharged on the account , plus
  • Time Value of money on the overpayments - which is about 5% of the interest overcharged,plus
  • Compensation of 15% of the the interest and the TVM
3) Your total package will be the higher of 1) or 2) + €1,230 for legal advice

So, 2) should be calculated using 15% and not 7.5%. I would say that this is an oversight by AIB and you could probably rectify it with a phone call or simple letter of enquiry.

Get the right automatic figure first. And then decide if you want to appeal for more.


However if 1) is higher than 2) using 15% , it wouldn't matter if they used 7.5%.

Brendan
 

Brian C

Registered User
Messages
30
Hi Brian

1) They calculate how much you would get under the Ombudsman Scheme which is

  • A write down of 12%, plus
  • the interest charged on that write-down.

2) They calculate the total redress under the Central Bank Scheme which is , in simplified terms

  • the interest overcharged on the account , plus
  • Time Value of money on the overpayments - which is about 5% of the interest overcharged,plus
  • Compensation of 15% of the the interest and the TVM
3) Your total package will be the higher of 1) or 2) + €1,230 for legal advice

So, 2) should be calculated using 15% and not 7.5%. I would say that this is an oversight by AIB and you could probably rectify it with a phone call or simple letter of enquiry.

Get the right automatic figure first. And then decide if you want to appeal for more.


However if 1) is higher than 2) using 15% , it wouldn't matter if they used 7.5%.

Brendan
Brendan, noted with thanks. I will proceed as you advise.
Brian
 

Brian C

Registered User
Messages
30
Brendan, I phoned AIB and while the individual wasn't 100% sure he thought that the 15% only relates to home mortgages while 7.5% relates to BTL's. He has gone to check this. Seems odd as what's the difference. Whether it was a home mortgage or a BTL the financial effect was the same, leaving me skint. I will revert with an update.
Brian
 

Brendan Burgess

Founder
Messages
45,739
Hi Brian

Sorry, I assumed it was a home loan. I seem to remember it was lower for BTLs.

It makes sense for an automatic payment.

A person struggling to pay their home loan would be seriously impacted.

Many people with a BTL would just suffer a lower return on their investment and their lifestyle would not be impacted.

But it's an automatic calculation which leaves you free to apply for more if your personal circumstances warrant it.

Brendan
 
Top