Bank of Ireland BoI didn't offer me a tracker when they should have.

T

tubberclaire

Guest
Like everyone I read the news today in the independent, although I did not receive a letter from ICS.

I rang ICS this morning and they said that I did not qualify to go back on the tracker like some of you have done.

I drew down a mortgage in 2008 on tracker for 1 year. Payments dropped by €600 per month over the course of 1 year.

In 2009 I was offered various fixed rates, variable, and a tracker. We chose fixed as we were unsure of what way the rates were going to go. The 2 year rate we fixed on as well still meant that we were paying €400 less then what we started off on, so we did not mind locking in

This term was up in July, and due to the ECB rate increase recently ICS were due to increase their fixed rates by a considerable amount.

Before they upped their rates I decided to break out of the term and signup to a new fixed term based on their rates in March. I am still saving €150 a month based on what we paid when we first drew down the mortgage, where as if I had of held off until July I would be paying more money then when we first drew down, so locking in again earlier this year seemed like the sensible choice

However the rates offered to me last month were various fixed rates, and the variable, no tracker.

I don't have any documents to hand and I'll go through them when I get home. I am usnure if they explained that if I decided not to go with the tracker in 2009, that the tracker would not be available to me in future

Because I decided to fix in 2009, does that mean I waived my right to go back on the tracker at the end of the 2 year term?
 
T

tubberclaire

Guest
Val78 - I broke out of a fixed rate a month ago to avail of cheaper fixed rates before they went up. It cost €180 but this figure changes everyday.

What you need to look at is how much you are paying by the month on a fixed, and how much you would pay if you went to tracker now. If the difference per month is lets say €400 per month, and the fee is a one off €200, then breaking out of the fixed back to tracker and pay the one off fee seems like a good choice to me.

At the end of the day it's money in your pocket :)

I agree though they made the error you should not have to pay the fee
 

val78

Registered User
Messages
19
Check your initial loan offer that you recieved first day it will say under special conditions what your are entitled to. I found this after getting my letter on Fri..
I just rang Branch that I deal with suprise suprise the lady I spoke with who I know for years hadn't a clue what I was on about!!! Going to use the Branch Mortgage Officer to get on to Dublin also..
Have requested how much it will cost to break out of fixed, good point tubberclaire about how it worth it to break out of fixed if it costs less in long run.
to be continued....
 

Knuttell

Frequent Poster
Messages
704
Rang ICS this morning to be told that I was not one of the 2,000 customers to be returned to a tracker,she then exhausted all the reasons why I was not in this category before saying she needed to speak to a supervisor,finally came back on the line to say that she could see nothing either in the MFA or original mortgage agreement that should have stopped me being offered a tracker on expiration of the fixed rate...she has escalated this upwards as a complaint....

..and the beat goes on.
 

raglan

Frequent Poster
Messages
75
FAO MCAUL and others........
Just wondering will other banks follow suit. My story is took out mortgage through a broker in 2005 to build. Mortgage was variable, no mention of tracker but broker said it was and in the terms & conditions of it, it stated that over the term of loan it would not go above 1.1% of ECB. (=Tracker)
In 2006, we were sent letters from KBC informing us of their "special" fixed rate offers, we never voluntary went looking about fixed rates but were sent these letters out. Eventually we decided to fix as we were building as thought it would be good for budgeting plus interest rates were rising and overall feeling in media was to fix. Roll on 3 years, when fixed rate expired and we are now on standard variable and now have much more awareness due to publicity about invaluable tracker mortgages etc.

I saw an ad in paper last year about KBC customers who fixed been allowed to return to tracker rates after fixed rate expired, so I rang up about this as our MFA stated that at end of expiry we would be on SVR. So I explained how we had not been aware of the implications of fixing as we thought we were returning to a "tracker" variable rate and were not aware of the difference between the 2, and how come other customers were able to retain their tracker rate after. The agent said it depended on the month on which we decided to fix our mortgage as they had different offers on different months!!!!

After lodging a complaint with KBC and no outcome, I am awaiting feedback from ombudsman in next few months. Fingers crossed on a good outcome as:
1. We didn't voluntary seek out the information
2. Cost of and implications were not set out to us so we could make a well informed decision, grant it we were naive but are much more informed now since 2006, all down to difference of one word on an MFA form "STANDARD" variable rate. On the Matt Cooper Today FM had a good discussion about this yesterday, maybe has it as a podcast on the website but they stated that a lot of bankers were naive and didn't know the implications about what they were selling....so god help us ordinary folk. One man said that to come of a tracker mortgage based on the mortgage you'd want to be offered 100K to give it up.
3. On the MFA, it said that the information on it was "in addition to the T&C of the original loan offer", original loan offer says that over the term of loan we will be no more than 1.1% above ECB.
4. The Central code of Conduct came out after we fixed so were not educated at the time of the implications

Does anyone think we have a case? Hope we have a good outcome, I will post here when know more.
 

nightpark

Registered User
Messages
17
Hi, I haven't got a letter from BOI but I fixed my mortgage in 2005 for five years and came off it in sept 2010. I was on a tracker of 1.1% over the ECB. I was put back on the variable rate and have since fixed for another three years. I notice from some of the posts that some people do not meet the requirements to go back to the tracker and I'm wondering what these are. I haven't rang the bank as yet. Any help greatly appreciated as going back to a tracker would make a big difference.
 
F

Flylmg

Guest
Just in relation to this issue.
I hadn't received a letter so contacted the bank to be told we were one of the 2000 customers. They informed us we will be offered the tracker in 2012 as the bank hadnt advised us of the cost implications of giving up the tracker.

We are still on the fixed rate till 2012.
Does anyone know
1. Should we be able to get our tracker back immediately
2. Do we qualify to get the return of the difference between the rates for the last four years. As if the bank had explained the cost implications we wouldn't have fixed our mortgage. When I asked the bank she informed me calculations were still being done

Is anyone else in a similar position ?
 

nightpark

Registered User
Messages
17
I rang my bank and was told I wasn't one of the 2000 customers as my offer letter specifically stated that I would go on to a variable rate at the end of a fixed term. Seems fair enough response but just wondering did anyone else get the same response.
 

mcaul

Frequent Poster
Messages
468
@raglan
I received an email back from Financial Ombudsman stating that I had a valid complaint and to follow the set procedures. Obviously they can't comment on likelihood of success, but it was good to see they said it was a valid query.

Like you, I received the fixed rate letter every time the rates went up and finally bit at the bait without thoroughly reading every last word.

There's no mention that the standard variable rate would cost more than the tracker and I believe this was omitted purposely to get as many people as possible off the trackers and only the more profitable fixed & variable rate.

When I came off the fixed rate I was surprised that I did not go back to the original terms of the mortgage and the 5 words of a very crowed single page document was pointed out to me.

On a 400k mortgage, its worth about 70k over 20 years - rather my pocket than theirs :)
 

mcaul

Frequent Poster
Messages
468
I rang my bank and was told I wasn't one of the 2000 customers as my offer letter specifically stated that I would go on to a variable rate at the end of a fixed term. Seems fair enough response but just wondering did anyone else get the same response.
But the issue seem to be that the banks did not warn anyone that when reverting back to variable, it would be standard variable and that the cost of the is product was higher than your tracker rate.

Its worth checking out further as if its a by th by staement, you may get switched back, however if it very clear and the give the cost of the tracker then it could be a different story.
 

raglan

Frequent Poster
Messages
75
MCAUL,
can I ask you about your MFA sheet, did it say that you would go onto a variable rate or standard variable interest rate or retain your original tracker rate when fixed rate expired?
From what I can remember ours said we would go onto the lender's standard variable rate but at that time we didn't know that there would be any difference between variable and standard variable.......talk about being green. No cost implications were made or warnings that we'd lose tracker forever...just that this was a great offer and closing date for applications was soon!
 

mcaul

Frequent Poster
Messages
468
MCAUL,
can I ask you about your MFA sheet, did it say that you would go onto a variable rate or standard variable interest rate or retain your original tracker rate when fixed rate expired?
From what I can remember ours said we would go onto the lender's standard variable rate but at that time we didn't know that there would be any difference between variable and standard variable.......talk about being green. No cost implications were made or warnings that we'd lose tracker forever...just that this was a great offer and closing date for applications was soon!
Mine was same as yours. Box in the middle with about 15 lines with variouse T&Cs. About line 3 say it will return to banks standard variable rate, but no mention of cost / apr or anything else. Hence as no information was given to the added cost this would entail, its not valid.

Seems the fixed rate form was never updated when trackers came in, and as it was to the banks favour, they have simply implemented it as it stands.

Central Bank ruling on BOI seems to knock it for 6 especially as you or I went looking for a fixed rate and this was automatically sent to us each month.
 
J

jdire

Guest
OP here with an update.

Went to see the mortgage advisor in my local branch to see what I can do.
Up until I went to see her she had no knowledge of this whole issue, and Agreed with me that as far as she can see from the letter I got I should really be refunded in full and put on the tracker straight away.

She worked out the difference between the tracker repayments and what i have actually paid. The figure is pretty close to €4000 for 16 months of repayments.

She then put in a request through their online system to get the tracker applied from now,(not sure if it will work, but we'll see)

Then contacted BoI mortgages to get clarification on the whole thing. As far as they were concerned I wasn't being refunded for the past 12 months. and that seemed to be that.

So the only thing to do was to lodge a formal complaint.
-complaint is now lodged and I;m looking for
-re-imbursement for the past 12 months
-to be put on the tracker rate effective immediately .
-and for all monies to be refunded to me personally and not credited to the mortgage account.
- The reason for this is due to the banks mistake , I made a decision to fix my mortgage based on misinformation that they supplied me with which informed my decision making. Had I have been on the tracker rate at the time there was no way i would have fixed.

Apparently they have to acknowledge the complaint within 5 working days, and within 21 days give notice of when the final decision will be made and I am meant to receive the final decision within 40 days.

So here goes hopefully I'll get a satisfactory answer
If I'm not satisfied then once I have the final decision I think I can lodge a complaint with the ombudsman,

Maybe the article in the independant and the subsuquent queries I'm sure it has caused will light a fire under them and come to a proper solution for all affected people in this situation.

I'll keep posting with my progress.
 

Bronte

Frequent Poster
Messages
13,825
Jdire thanks for the update. Basically the branches don't have a clue and can't deal with it and everything should be in writing to the mortgage department.

It's very difficult to answer other posters who have similar problems on this thread. Each case is individual. Maybe they should do their own threads?
 
Top