Clarification of the Ulster Bank to AIB repayment calculation issue

Brendan Burgess

Founder
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Here is the statement from AIB

•AIB is working to resolve queries raised by some customers whose tracker mortgages moved to AIB as part of AIB’s recent purchase of Ulster Bank’s mortgage book. The queries arose following a letter issued after the July ECB rate increase, resulting in customers being notified of an incorrect monthly payment change scheduled to take effect in October.
•We want to reassure those customers that they do not need to take any action. We will issue revised letters with corrected payment amounts in the coming weeks. In the meantime, there is no change to their monthly repayments.
•Customers will not face repayments greater than they had originally expected following the ECB increase.
•We apologise to those customers for any anxiety caused and assure them that we will take all corrective action necessary to put this right.
 
They are still investigating it.

But it seems that the letter is wrong.

Those of you who have used repayment calculators and calculated a figure in line with what you were expecting are correct.

Ulster Bank calculated the repayments correctly.
AIB will calculate the repayments correctly by October.

But the letter is wrong.

Brendan
 

But Brendan, its not just a letter. AIB staff were told to tell people that their schedules were wrong. Customer service staff would only ever say that if instructed. The letter is not wrong. AIB had trained their staff to deal with queries around it. I could understand if people rang up and were told AIB needed to investigate.

Their only regret was the Irish Independent article. But everything else was planned by AIB.
 
I think it looks like AIB were incorrect, I'm sure we will get further clarification as to why they were incorrect as they originally believed it all to be rosy.
 
Hi Sunny

1) The letter was wrong but they did not know that yesterday.
2) They assumed that their calculations were correct so they thought that Ulster Bank must be wrong.
3) They panicked and issued a wrong explanation instead of saying "We need to investigate this"
4) It never occurred to them that the letter could be wrong.


Brendan
 
I am assuming that instead of using the correct opening balance to do the calculation, they used some other balance by accident

It must have been an earlier balance so the mortgage would have appeared higher and the repayment higher accordingly.

Possibly the opening balance for 2023? Or maybe the balance on the day AIB agreed to buy the mortgage?

Brendan
 
Brendan Burgess said:
1) The letter was wrong but they did not know that yesterday.
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Regardless of whether their calculations were right or wrong, they would have been aware that the new payment amounts were heavily inflated relative to what customers might have anticipated.

The letters should still have been preceded by an explanation as to why repayments needed to go up so sharply.
 
I dont read it as the Letter is wrong rather they are going to engage with the mortgage holders impacted to sort something out

But TBH its all a mess
 
Couldn’t agree more. We got that awful letter stating what our repayment would be too. We were expecting a €3increase not €27 increase. When we phoned AIB we were told Ulster Bank had incorrectly calculated our repayments. AIB are in breach of the terms of the transfer. We said we wanted to lodge a complaint & we’re told we won’t get a complaint number but it would be lodged under our mortgage. Rang Ulster Bank today, they advised their calculations were correct & on lodging a complaint with them, they said we would hear from their complaints department with a complaint number & answers within 5 working days. Every piece of documentation we got from Ulster Bank & AIB clearly stated there would be NO changes with our mortgage other than any changes in the ECB rate. This is outrageous, scandalous carry on by AIB. We are pensioners on a tight budget with 40 months left on our mortgage.
 
Hi guys

I would like to see one of the letters. Could someone anonymise it and post it here. Or send it to me at brendan at this website and I will anonymise it and post it.

Thanks

Brendan
 
here goes, currently on 877, was expecting around 905, the end of the term is feb '24.

PS: note that unlike the reports there is no mention of Ulster under-charging in it or anything like that, it was only after waiting half an hour for their helpdesk they came up with this concept. This could just as easily have passed off as legit if you believed their letter.
 

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I have done some calculations.
For your repayment of 877.00 your rate of 4.85% and term of I think 8 months.
your balance would be around 6891.00

For the repayments to be 1124 on a rate of 5.1% the closest I could get was a term of 7 months and a balance of 7768 which is the previous balance plus one payment and an incorrect term.
 

Thanks, that's all correct, UB in July stated i owed 6891, 8 months, the rate moving from 4.8 to 5.1 just then. So AIB got it wrong? The heldesk said I would be still owing them come February when the mortgage ends if they didn't increase my repayment,
 
wavejumper said:
The heldesk said I would be still owing them come February when the mortgage ends if they didn't increase my repayment,
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You'd still owe them on 1st February, but not if they take a payment in February.
What day of the month do you pay your mortgage? I wonder if they've calculated that it must be paid before the maturity date they received from UB?
 
RedOnion said:
You'd still owe them on 1st February, but not if they take a payment in February.
What day of the month do you pay your mortgage? I wonder if they've calculated that it must be paid before the maturity date they received from UB?
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On the first of the month.
 
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