My husband applied for Mortgage Loan with local AIB branch in mid 2008. In early July he received a letter of offer for same which was a Tracker Rate.
He then enquired with branch about having rate fixed on the mortgage so as to have reassurance on repayments and was informed that he would have to write a letter to the effect that he wanted to fix the rate, which he did. Approximately 3 weeks later he received a second letter of offer, with original reference no., which had a 3 year fixed rate reverting back to a variable rate for the remainder of the mortgage. He signed this offer upon the advise he had been given from the bank. When this mortgage offer was sanctioned and funds ready for release he was then informed that he was not entitled to draw mortgage payment down in stage payments (as it was a new self build) as a fixed rate mortgage, that it would have to be drawn down at variable rate. He was then requested to write another letter to ask for the mortgage to be released at variable rate until drawn down in full at which point it could be fixed. He did as requested by the bank and mortgage was released at variable rate.
Both letters of offer terms are identical and use the same reference no. Both make reference to reverting to tracker rate after fixed period. As far as he can see AIB were still offering Tracker Mortgage rates until late October 2008.
The lender knew from the beginning that this was a self build and therefore would not release funds on a fixed rate until drawdown was complete. Had he been informed of this, initial letter of offer would have been accepted. Basically the lender asked him to request and sign up to something they were not in a position to offer, in doing so denying the possibility of a tracker mortgage.
I hope this explains the scenario. In T & C's, it has, at end of fixed term - a, b, c, options - one of which is revert to tracker. This is in bother offers he received.
He then enquired with branch about having rate fixed on the mortgage so as to have reassurance on repayments and was informed that he would have to write a letter to the effect that he wanted to fix the rate, which he did. Approximately 3 weeks later he received a second letter of offer, with original reference no., which had a 3 year fixed rate reverting back to a variable rate for the remainder of the mortgage. He signed this offer upon the advise he had been given from the bank. When this mortgage offer was sanctioned and funds ready for release he was then informed that he was not entitled to draw mortgage payment down in stage payments (as it was a new self build) as a fixed rate mortgage, that it would have to be drawn down at variable rate. He was then requested to write another letter to ask for the mortgage to be released at variable rate until drawn down in full at which point it could be fixed. He did as requested by the bank and mortgage was released at variable rate.
Both letters of offer terms are identical and use the same reference no. Both make reference to reverting to tracker rate after fixed period. As far as he can see AIB were still offering Tracker Mortgage rates until late October 2008.
The lender knew from the beginning that this was a self build and therefore would not release funds on a fixed rate until drawdown was complete. Had he been informed of this, initial letter of offer would have been accepted. Basically the lender asked him to request and sign up to something they were not in a position to offer, in doing so denying the possibility of a tracker mortgage.
I hope this explains the scenario. In T & C's, it has, at end of fixed term - a, b, c, options - one of which is revert to tracker. This is in bother offers he received.
