AIB AIB's adverts said that the tracker rate was set at the beginning of the mortgage!

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verywhys

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An explanation of a tracker mortgage from the AIB web site in Sept 2006

"Your Tracker rate is set at a margin (percentage) above the European Central Bank (ECB) rate at the beginning of your mortgage term and ‘tracks’ changes in the ECB rate for the life of the loan. So, while your rate will move up or down in line with the ECB rate, you have the certainty of knowing your margin above the ECB rate will remain the same."

If you were never on a tracker rate but were entitled to one, should the prevailing rate be taken from the "beginning of your mortgage"?
 
Check out the attached screenshot..... @Sleven273 have you made an appeal or what is your thinking on this prevailing rate?
 

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Once upon a time....AIB listed the tracker as a fixed rate on a press release (10th March 2003).....is that a 10 year fixed tracker rate?......hard to tell :) .....maybe the 'prevailing rate' should have been fixed from the draw down of your mortgage.....
 

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Hi VW

Well spotted. That is a great additional argument for people who should have been offered a tracker at the prevailing rate when the fixed rate ended.

AIB has set the prevailing rate retrospectively.

That document would support the argument that it should be the rate prevailing when the mortgage was taken out.

Brendan
 
Whilst it would be great if this was true this description of the Tracker rate was on a brochure for a discount on new tracker rate mortgages. In this case you would be taking out a Tracker Mortgage with a discount off this for the first year. I do not see how it would support the argument that the prevailing rate would be the rate applying when the mortgage was taken out. Can someone explain how this helps?
On the second image where it lists a Tracker mortgage with the fixed rates it also mentions that customers may wish to 'lock in' these great rates. It lists a number of fixed rates also. I am not sure of the current offerings but for arguments sake if they stopped offering a 3 year fixed rate directly after this publication, should I have the right to request to go on this 3 year fixed rate of 3.99 now - the last rate offered?

AIB paid €1600 to people with condition 3.2 as they were not offered a tracker interest rate loan. The options were fixed, variable or tracker at the Banks then prevailing rates appropriate to the Mortgage loan. I would see 'then prevailing rates' as those prevailing at the time at the end of the fixed rate period. Whilst I accept that the tracker rate has been set retrospectively I cannot see how these documents support the tracker rate being either the one on offer at drawdown, or the last one that was offered before it was withdrawn.

I am an AIB mortgage customer and received the €1600 compensation and will keep the money and accept that at least I have got something. I have a small mortgage affected by this clause though so can understand those more affected trying to argue against this decision. I fail to see how these documents help the case though (but am not involved in legal or financial circles). I wish everyone the best of luck with this.
Tommygirl
 
Hi tommy

I just don't think one can set a prevailing rate in retrospect.

If the High Court agrees with that argument, then some other way must be found to determine the prevailing rate.

There are a few options

1) The last rate at which trackers were issued
2) The average rate on the AIB mortgage book
3) The rate being offered by the market generally
4) The tracker rate prevailing at the time the mortgage was taken out.

This document is certainly not decisive, but it would boost the case of Option 4)

Brendan
 
Toomygirl - that is a clear definition of what a tracker mortgage is from AIB in black and white-? I dont have an AIB mortgage - but I do have a mortgage from EBS who gave me a 'variable base rate' when I requested a tracker - which some how turned into a SVR - no definitions of this 'variable base rate' to be found anywhere that I can find - ebs dont even have it ( surprise surprise)
- how could this definition not be helpful - if you ask me its worth gold ?
 
Another definition for a tracker rate from AIB web site in 2007

Tracker Rates – what are they?

A Tracker rate is a variable interest rate. It is set at a fixed margin (percentage) above the European Central Bank (ECB) rate and ‘tracks’ changes in that rate for the life of the loan. So, although your rate will move up or down in line with the ECB rate, you’ll have the certainty of knowing that your margin above the ECB rate won’t change.


"fixed margin....for the life of the loan" , "certainty of knowing that your margin above ECB rate won't change" .... how can AIB make up a prevailing rate with this made up margin.....does a fixed margin for the life of the loan not make it crystal clear?
 
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the most important bit here is this the tracker definition from sept 2006 - where it says

set at a margin (percentage) above the European Central Bank (ECB) rate at the beginning of your mortgage term

so go back to the date you drew down your mortgage and see what the tracker rates were then .... that is the rate you should be on not the rate AIB just made up ?
 
go to archive.org and search there for archived versions of the AIB website and you should be able to find something around that date - you will need patience but should be lots of info there
 
@verywhys. I have been on the site but it only brings up the archived home page. Is there any specific search you used to pull up the mortgage page?
 
@verywhys I'm just looking to see what they said about trackers leading into the September /October on the site before they withdrew trackers in 2008.
 
@Sleven273 ...This link is for 14th Oct 2008.....which is strange considering they put out a press release on 10th October 2008 announcing the withdrawal of tracker mortgages....??
 
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