Am I entitled to redress after mortgage loan transfer to different property?

CCCatch2020

New Member
Messages
3
Hi, my query relates to a mortgage which I drew down in July 2007 on a tracker rate of 4.6% with AIB Mortgage Bank. In July 2008 I fixed this at a rate of 5.25%. In the subsequent months, I struggled financially to maintain payments (though none were missed) and with great upset, decided to sell my property. The property was sold in September 2009 and remaining balance of loan after sale (c. €190k negative equity) transferrred on to my father's property. In order to facilitate this, the property title had to be transferred from my father's name into mine. When this new loan was drawn down against my father's property, I was neither offered or allowed to avail of a tracker mortgage rate and was placed on the prevailing variable rate at the time (2.45%).

My question is: should I have been entitled to avail of a tracker rate in September 2009 as 1.) That was the original product applied to the original property/loan and 2.) I had endured great financial difficulty and stress which led to me selling the original property?

I acknowledge there are 2 different properties involved but essentially the same loan hence my query.

Thanks
 

Brendan Burgess

Founder
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41,811
The property was sold in September 2009 and remaining balance of loan after sale (c. €190k negative equity) transferrred on to my father's property.
Forget about rates for the moment, why did you do this?

You could have just sold the property and let AIB come after you for the €190k which I assume that you did not have?

Later on, you could have availed of bankruptcy or a Debt Settlement Arrangement.

Sounds like you were very badly advised at the time.

Did the solicitor advising you and the other solicitor advising your father not question this?

Brendan
 

CCCatch2020

New Member
Messages
3
Hi Brendan, thanks very much for getting back to me so promptly!

The reasons I did this were as follows:
1. To continue making mortgage repayments and maintain a strong credit history.
2. I wouldn't have wanted to avail of bankruptcy as it would not be in my nature to go down that route / again, I felt it would impact negatively on any future borrowing applications.

I used the same solicitor for the sale of the first property and for the transfer of the second - they never mentioned anything about bankruptcy / debt settlement. I was just happy enough to be out of financial difficulty to be honest and I am still content with that course of action.

Thanks
 

Brendan Burgess

Founder
Messages
41,811
OK

Unfortunately, the time for negotiating was back in 2009 when the transaction was done.

If you had proposed to AIB that you would transfer the fixed rate to the new property and thus hugely improve their security they would have been delighted.

As you cleared your old mortgage, they were under no obligation to move the tracker/fixed to your new property.

Having said that, I think that they should have agreed to give you a tracker at the old rate by concession.

Have you raised it with them?

I think you should put a case together along the lines of

1) I did the honourable thing
2) I gave you security for your loan
3) I have made my repayments.
4) Now give me a tracker and backdate it to 2013 when the fixed rate would have ended.

If they say no, then you could try the Ombudsman.

Brendan
 

CCCatch2020

New Member
Messages
3
Thanks Brendan,

That's fair enough - I'll draft up a letter using those points and hope for the best!

Thanks again for your advice,
C
 
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