BOI, incorrect rate

[Timmy.s]

Hello all

I think my earlier post was deleted due to a vague thread title, my apologies.

When my fixed term came to an end I was offered

1.Tracker variable ECB + 1.25% at a rate of 5.250%
2. Fixed 2008, 09, 10, 12 and 2017 at a rate of 5.390, 5.490% and 5.890%
3. Variable at a rate of 5.340%

The letter states if I dont reply within 30 days I go onto the standard homeloan variable rate of 5.250%. This rate does not match the above variable rate? Is this a misprint?

Thank you
Tim

 

[moneymakeover]

Unless they mean the tracker variable, that could be the standard homeloan?

 

[Timmy.s]

Im unsure. Im in the process of contacting the bank to request all documentation regarding the mortgage. At the moment im not sure if I replied to them and if I did what rate I ticked. What is the wording used to request such information regarding the mortgage correspondences does anybody know? To me it says if I dont reply ill go onto the variable ecb rate of 5.250% yet the variable rate above says 5.340%.

 

[bmkearney]

Hi Timmy.s I in a similar situation as yourself.
I took my mortgage out in 2005 1st year on the special fixed for first time buyers. In 2006 I fixed for 2 years. In 2008 I fixed for 5 years. So was never on a tracker. But in my 2008 rates offer letter I was offered had 2, 3, 5 year fixed rates plus SVR plus ECB tracker +1.25%. Now were I believe I have a case is that on this letter it advised me if I did not select or returned this form by 1/09/2008 my mortgage would revert to a variable rate of 5.500% and when you look and the rates box above this line it represented the ECB variable +1.25% rate not the SVR which was 5.65%.

Also the paragraph below is from the Competition and Consumer Protection Commission website:

Moving to a tracker rate - but only if this was offered to you at the time you signed up for the fixed rate. Look at the documentation your lender sent you when you signed up to a fixed rate, as this will detail what your interest rate will revert to after the fixed rate term ends. If a tracker mortgage was one of the options, then your lender must offer you the tracker rate, even if they are no longer widely available. If you do not have the documentation, contact your lender and ask for a copy

 

[Timmy.s]

Hello bmkearney. Can i ask what stage you are at? Have you contacted the bank or anyone regarding the situation? I posted off a letter on friday requesting correspondence from when i came off the fixed rate. Fingers crossed we have a case.

 

[bmkearney]

Obudsman waiting to see if Central Bank forces banks to look at accounts they deemed not effected so he is waiting on outcome before he takes it any further.

 

[Timmy.s]

Havent seen paper work just yet but seemingly i ticked the variable rate box of 5.34 %. Should i give up or is it worth pursuing?

 

[Timmy.s]

Ok here is another angle. Lets say I definitely ticked a box indicating a variable rate of 5.34% when my first year fixed term came to an end. Now observe this quote form my original loan offer ''if the lender offers the borrower a choice then in either case , in accordance with general condition 7(b) of the offer letter, the interest rate applicable to the loan will be a variable interest rate. This variable interest rate may vary upwards or downwards. the interest rate shall be no more than 1.25 above (repo rate) FOR THE TERM OF THE LOAN. The bit in bold in the part im interest in. If I fixed tomorrow for 1 year, should the bank offer me a tracker rate when that fixed term comes to an end?

 

[LadyHB]

@Timmy.s The wording is ambiguous and confusing IMHO. Where it says for the "term of the loan" you would assume that the option of a tracker will always be available to you. Given that the tracker is built into your contract, it doesn't make sense that you defaulted to a standard homeloan variable rate. I have similar wording on my contract/similar options offered. I think you need to identify the point when your fixed rate expired and you weren't offered a tracker rate - that is likely to be the point your contract was broken regardless of whether you defaulted to a standard variable or chose a fixed rate at that point. You should request all mortgage documentation from BOI and have it reviewed.

 

[Timmy.s]

@Timmy.s The wording is ambiguous and confusing IMHO. Where it says for the "term of the loan" you would assume that the option of a tracker will always be available to you. Given that the tracker is built into your contract, it doesn't make sense that you defaulted to a standard homeloan variable rate. I have similar wording on my contract/similar options offered. I think you need to identify the point when your fixed rate expired and you weren't offered a tracker rate - that is likely to be the point your contract was broken regardless of whether you defaulted to a standard variable or chose a fixed rate at that point. You should request all mortgage documentation from BOI and have it reviewed.

So confusing. As I said. I was never on a tracker. I came from fixed rate to a variable rate ( by choice says the bank) Im kind of looking for someone that may be in the same position or have experience with this. I still think its very very unlikely that they could offer me a tracker but I wont know until i discuss it with a FA along with the original contract. If anyone could link a discussion on a similar situation it would be great.

 

[Omega143]

Hi . Basically , if you had tracker and moved off it that's fine . If your original contract states that you can have tracker for life of loan , the bank should have sent this as an option when rechoosing. We had this , but it was not offered to us as option when fixed rate over . When enquired with bank they moved us back onto tracker and returned overpayments . This was back in 2014 , with 5 years interest returned . We now have received letter from bank that will be back onto us regarding compensation . Anything else will be a bonus . Stay tight and let the process work through .

 

[Timmy.s]

Hi . Basically , if you had tracker and moved off it that's fine . If your original contract states that you can have tracker for life of loan , the bank should have sent this as an option when rechoosing. We had this , but it was not offered to us as option when fixed rate over . When enquired with bank they moved us back onto tracker and returned overpayments . This was back in 2014 , with 5 years interest returned . We now have received letter from bank that will be back onto us regarding compensation . Anything else will be a bonus . Stay tight and let the process work through .

Ah but i came from fixed to variable rate. Just wondering if i fixed now should the bank offer a tracker after the fixed rate.

 

[Timmy.s]

So just to update. I received a response today. Its just a generic response stating that all cases will be investigated by year end 2017.

 

[maunie]

Everyone getting those generic letters. I got mine months ago and I'm still waiting for a decision

 

[Timmy.s]

Everyone getting those generic letters. I got mine months ago and I'm still waiting for a decision

May i ask if you followed up on their response or are you just going to wait for the investigation to finish? Im currently setting up a meeting with Padraic kissane office.

 

[maunie]

I've called them twice a week and I'm told I'm affected and a letter will issue

 

[Timmy.s]

I received another letter today. It's just making me aware of the different rates available at the moment. I'm not sure if I should ring the bank or wait until p.kissane office get back to me. How long should I leave it. It's about 7 weeks since I heard from both.

 

[Timmy.s]

Just thought I would update this thread. Basically the bank said they would get back to me this month. I received a letter last week stating that it will now be early July when they get back to me. They must be flat out busy. Has anyone got anywhere faster by ringing them?

 

[Duffer]

Hi . Basically , if you had tracker and moved off it that's fine . If your original contract states that you can have tracker for life of loan , the bank should have sent this as an option when rechoosing. We had this , but it was not offered to us as option when fixed rate over . When enquired with bank they moved us back onto tracker and returned overpayments . This was back in 2014 , with 5 years interest returned . We now have received letter from bank that will be back onto us regarding compensation . Anything else will be a bonus . Stay tight and let the process work through .

Hi,

This is my EXACT situation, Bank of ireland never gave us the option of tracker in 2010, only option we had was for 3x different fixed rates.

In mid 2013 they contacted us and put us back on a tracker, according to central bank they had to etc.
I’ve been chasing them up for ages now about my refund of interest and compensation but only hitting a brick wall and getting generic letters stating that the investigation is ongoing.

Any word or more updates from people with similar situation

 

[Timmy.s]

http://i63.tinypic.com/2wgrvgy.jpg[/IMG]']I received a response from the bank. They note that they received my letter of complaint but it was a letter of request and not complaint. I dont know where I stand now. Ill post the response minus personal details. When I spoke with Padraic Kissane office they thought I had a very good case. What do you guys think?

Its probably no big deal but in my original loan off the wording for the repo rate is ''operations minimum rate'' but in the banks recent response it states ''operations minimum bid rate''. Just a typo? do they mean the same thing?