AIB AIB - never offered tracker

[qeivinc]

The Irish Times reported today that AIB mortgage holders who had never been on tracker maybe entitled to compensation because they were not offered a tracker.

However, anyone who was on a standard fixed-rate contract in late 2008 should have been eligible to transfer to a tracker once their fixed period was up, as was the case for people who were previously on a tracker rate.

In April 2005, I wrote to AIB and asked if I could go on the then available 2.95% tracker. They replied that because I was on a Buy to Let, I was only entitled to 3.5% (ECB + 1.5%) but that I was on a discounted 3.3% at that time.
They finished by saying that "If you wish to avail of this rate at any tine in the future, please send a written request to this office".
Subsequently I went on a fixed rate for 3 years which expired in December 2008.
In October, AIB stopped offering trackers and I was offered a variable rate or one of several fixed term rates.
They subsequently raised their rates significantly which led me to ultimately pay off the btl mortgage in 2015 with an inheritance as opposed to paying down my ppr, thus losing the tax relief on the btl income.
It didn't occur to me until today that I may have been entitled to a tracker.
What should I do next?

 

[peteb]

Nothing. The offer would have been conditional on the fact the product existed. The product no longer existed. You didnt have a contractual entitlement to it.

 

[qeivinc]

Yes and that was my original thinking back in 2008. However the article in the Irish Times stated a contrary opinion so I was interested in opinions on that.

 

[Sarenco]

Hi qeivinc

What did the fixed rate contract say would happen at the end of the fixed-term period?

That's the key question.

 

[gnf_ireland]

@qeivinc If you think you have a case, I would formally raise a complaint with AIB and get them to investigate it, or confirm/deny you are in scope for their tracker review process.

Given the text above, I would think you have the basis of a complaint. How successful you would be I do not know. Language, even the most carefully written text such as laws, are always open to interpretation. It would be interesting to hear how they would defend this in a complaint.

Put it this way, I would argue you have more of a case than some of the scenarios being asked about on this site over the last 10 days !

 

[qeivinc]

I never felt I had a case and just thought I was unlucky that the trackers were pulled before I completed the fixed term.
I don't recall receiving a contract for the fixed rate. The relevant letters are:-

April 2005:-

December 2005

Then in Dec 2008, I was put onto a standard variable rate which the loan had been prior to me taking the fixed rate.

 

[gnf_ireland]

I never felt I had a case and just thought I was unlucky that the trackers were pulled before I completed the fixed term.
I don't recall receiving a contract for the fixed rate.

I suggest you raise a data request with AIB to get all the relevant data from them, and all formal correspondence.
If you still think you have a case, raise a formal complaint and see what they say regarding the line above
Then decide what you will do next - that will take ~6 months anyway - maybe longer depending on how many people are studying their mortgage contracts at the moment

Yes, you were probably unlucky, and normally I would say this is just the way the cookie crumbles, but you have a line in formal correspondence and its worth pushing to see what you can get. Even if unsuccessful, you may be lucky and get a goodwill payment just to close the complaint out !

 

[Bigman]

I was on a variable mortgage with Aib. In early September 2008 I requested to go to tracker rate due to meeting the criteria. AIB dragged their feet until mid October 2008 and they then told me they had finished tracker rates even though I had requested same more than a month previous. They offered fixed rates between 5.5 and 6.5%. I stayed on variable. Where do I stand now. Thanks for your help.

 

[Rosie crow]

I wonder if anyone can advise me please.
We took our mortgage out in June 2005 on 1 yr fixed (Not a Tracker). In June 2006 we fixed for 3 yrs, again not a Tracker, although we were offered a Tracker rate. Then in 2007 we topped up our mortgage and the top up was put on a Tracker Rate. We were advised at the time that it would be too costly to come off the fixed term for the main mortgage and to wait until 2009 to go on a Tracker rate for this. When we received our options to review our rate in 2009 we were not given the option of a Tracker as AIB had discontinued the Tracker mortgage. So we've been on a variable rate for our main mortgage and a Tracker for our top up.
I have written to AIB in Oct 2017 to complain and have had no correspondence from them. I called their mortgage review section at the end of Nov 2017 and spoke to someone who said we wouldn't be part of the review because we had been offered a Tracker in 2006 and declined. I pointed out to him that we opted for the Tracker in 2007 top up and decided to wait until 2009 to put our main mortgage on Tracker. Bottom line he said we had no case, I requested all our documents on this call, to date haven't received them. So I called again yesterday to be told we will be part of the review but have not been identified as affected as yet. He said it would be near March before we hear anything.
My argument is, had we come out of our fixed rate and paid the penalties, it would have been a drop in the ocean to what we have lost out on since 2009.
Has anyone got a similar experience?

 

[Brendan Burgess]

In early September 2008 I requested to go to tracker rate due to meeting the criteria. AIB dragged their feet until mid October 2008 and they then told me they had finished tracker rates even though I had requested same more than a month previous.

You requested.
They refused.
If you were not happy, you could have switched to another lender.

Too late now.

Brendan

 

[Brendan Burgess]

Then in 2007 we topped up our mortgage and the top up was put on a Tracker Rate. We were advised at the time that it would be too costly to come off the fixed term for the main mortgage and to wait until 2009 to go on a Tracker rate for this.

Rosie

You made a decision not to take a tracker which was available. End of story.

I am not sure why they are even reviewing your case. Unless there is something else you haven't told us.

Brendan

 

[Bigman]

Brendan thanks for your reply. Just thought the fact that they dragged out giving me their decision until after they stopped giving these rates, like as if they were waiting for the excuse not to give me the tracker rate might have been a case for them to answer... thanks again

 

[Rosie crow]

Hi Brendan,
Thanks for our reply. When we re-mortgaged in 2007 we asked for a tracker, but were only given the tracker on the top up amount, and were told the original mortgage could go on Tracker when the fixed rate was up in 2009.

 

[qeivinc]

So, I received a "final response" to my request. Its a long letter detailing what was in my file. Some errors, eg they think it was a originally a principle residence which became a rental property when in fact it was always a BTL. Ultimately they reject my complaint.

They confirm that trackers were available to me "upon written request" when I requested one in writing in Summer 2005 if I requested it again in writing. I didn't because as they pointed out that I was on a discounted rate of 3.3 and the applicable tracker at the time was 3.5. When this expired, I requested a 3 year fixed rate which I don't recall but I assume was the best at the time. And when this expired in Dec 2008, they did not offer me a tracker. They wrote to me offering a variable rate or one of several trackers.

As I said before I never expected that I was entitled to a Tracker but my understanding of this review is that people who were entitled to trackers were not offered one after their fixed terms ended. From the AIB correspondence this appears to apply to me?

They state: "the bank can confirm that Tracker Interest Rates were available for your selection when you requested ... The Bank did not receive a response .. until Dec 2005 when you requested a 3 Year Fixed .... When your Fixed rate expired in Dec 2008, Tracker Rates were not available.. As a result the bank was only in a position to offer rates .... that were then currently available."

I will scan the whole paragraph and paste it.

They also say the bank is currently part of an industry wide review and they will write to me again confirming their final position.

To summarize, I was on several rates over the years:- variable, discounted variable and several fixed terms. I was never on a tracker. I did at one stage apply for a tracker of 2.95. They replied to say that I was only entitled to a tracker of 3.5. At the time I was on a 3.3 discounted rate so I stayed on that. I subsequently fixed for 3 years. When that expired I was not offered a tracker.

So, the question is, should I have been offered a tracker in Dec 2008? And if so what should I do now?

Just to repeat I always felt I was unlucky not to get the tracker as I had intended to apply to get one in 2008 but I waited for the fixed term to expire. I ended up on huge rates but luckily I moved my home to tracker in mid 2008.