My reading of contract is that LTV at drawdown defines your LTV band and tracker margin. If you want to avail of a lower LTV band customer needs to furnish an updated valuation report in advance.
However, my reading of contract is also that tracker margins for all customers should not change after drawdown. If not in Part 1 re. start rate, then surely it's margin available at drawdown. Contract states that Bank can only raise tracker margin if not drawn down within 45 days or valuation report puts customer on different LTV band. Bank will write to confirm new margin (at drawdown). Also states that customer cannot change from one tracker rate to another (directly or indirectly) to avail of lower prevailing tracker margin.
AIB seem to argue that, although everyone under their standardised contracts (Letter of offer post March 2006) has enduring rights to a tracker option, it is only those who availed before they discontinued in Oct 2008, have rights to correct and unaltered tracker margins.
AIB are saying that it's all up for grabs again if come off tracker or do not avail of tracker, yet in contract states (for all customers) that Bank cannot raise margin after drawdown or customer cannot avail of future lower margin. Or did they mean that's only if on tracker at start or......only if are on tracker at one point or......???
AIB position seems to be down to what's offered by AIB. They are now saying if AIB were doing trackers they would offer a margin similar to (overpriced) SVR with ECB of 0%. That's certainly not what was marketed to me before entering contract.
They sold with one hand and robbed with the other. We were all made loose promises of good value mortgages, with no clear warnings that margins could change. They were the financial experts who risk assessed these outcomes of low ECB rates, yet never clearly presented this in a way to seek to inform customers.
If they did not warn customers and swallowed this risk to pedal more "good value" mortgages and help escalate prices higher, why should customers who were promised good value mortgages help offset AIB's realised low performing mortgages.....