AIB refused to allow us move to a lower LTV. Can we get redress?

H

Harvard

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Back in late 2011 I took out a mortgage with AIB along with my partner when we bought our PPR. In November 2017 I rang AIB at the time we were on a LTV of >80%. The value of the property at that stage would have been closer to 50%. In fact it was valued at a LTV of < 50% about 13 months later. The first reply I received from them is that I could not move bands under the terms of my letter of offer and could only avail of one LTV band for the duration of the loan. In early 2019 AIB relented or were forced to allow people to move bands and we promptly did. In light of recent talk surrounding tracker redress would I and others that were restricted from changing bands have a case for similar redress against such prohibitive lending practices. I'm intereted in people's views on this.
 
The short answer is no.

There was no requirement on banks to allow people avail of the lower LTV and when house prices dropped they did not revise the rate upwards.

I campaigned on this issue and Ulster Bank was the first to commit to allow all customers avail of the updated LTV.

AIB was the last and only did so because the Chief Executive got it wrong in front of the Oireachtas Finance Committee.

Having said all that, there is nothing to stop you making a complaint to AIB. It will be rejected.

Then you can go to the Ombudsman. It won't cost you anything but time and frustration. I doubt you would win, but if you did win it would have huge implications for other borrowers as the Central Bank would tell them to roll it out.

In fact, if you did win with the Ombudsman, AIB would have to appeal it to the High Court.

Brendan
 
Brendan Burgess said:
The short answer is no.

There was no requirement on banks to allow people avail of the lower LTV and when house prices dropped they did not revise the rate upwards.

I campaigned on this issue and Ulster Bank was the first to commit to allow all customers avail of the updated LTV.

AIB was the last and only did so because the Chief Executive got it wrong in front of the Oireachtas Finance Committee.

Having said all that, there is nothing to stop you making a complaint to AIB. It will be rejected.

Then you can go to the Ombudsman. It won't cost you anything but time and frustration. I doubt you would win, but if you did win it would have huge implications for other borrowers as the Central Bank would tell them to roll it out.

In fact, if you did win with the Ombudsman, AIB would have to appeal it to the High Court.

Brendan
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Brendan thanks for your reply. I'm a great believer in asking a question repeatedly until a favourable answer is forthcoming. Anecdotally I did hear stories at the time that some people did succeed in moving LTV bands with AIB. It might be worth a shot all the same.
 
@Harvard

I just came across this Key Post which might help your complaint.

Key Post - How to get AIB to allow you move to a lower LTV mortgage rate

AIB have refused to switch the interest rate on our home loan to the new lower rate for a lower LTV because the Letter of Offer forbids it! We are on a LTV between 50% -80% but our LTV is less than 20% This seems unfair for a bank that had to be rescued to be adopting a Rules based approach. If...
www.askaboutmoney.com
 
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