AIB Clause 3.2 and 3.1 (b) AIB contracts

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Trackscandal

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People are also entitled to have been offered a Tracker under Clause 3.1 (b) of AIB contracts. I suggest that Balfours Group also establish if this Clause applied to some of their cohort. I'm convinced that some of the 4,000 Clause 3.2 cohort would qualify to be offered a Tracker under Clause 3.1 (b) and AIB would have had a Prevailing Tracker Rate then because it referes to the date of Drawdown. Past issues of the property Section of the Irish Times published a Table of Rates each week so that is a good place to establish if the rates changed between loan offer and drawdown and hence if clause applied to you.


3.1 RATES NOT GUARANTEED TO DRAWDOWN


"Due to fluctuations in interest rates, the Bank does not warrant or guarantee that the rate specified in the Particulars will apply on drawdown:

  1. In the case of an offer at a variable rate or tracker rate, the initial rate which will apply to the Supplemental Mortgage Loan will be the rate prevailing at date of drawdown.

  2. In the case of an offer at a fixed interest rate, the appropriate fixed rate which prevails at date of drawdown will apply to the Supplemental Mortgage Loan if this is different from the rate specified in the Particulars. The Customer may accept this rate or, within 21 days of drawdown, opt to switch to the variable or tracker rates prevailing at the time without incurring any early breakage cost under Clause 3.3."
 
That is very interesting. I have two AIB BTL's I will see if this clause is in my contract.
 
Trackscandal I have that in my contract and I am in the 4000.

So in plain black and white it states that in my contract the prevailing rates been offered as part of any tracker i take up will be those prevailing at time of draw down, in my case July 2008.

Anybody got any idea what the tracker products were being offered in July 2008?
 
Hi Kopkidda,

Clause 3.1 (b) only applies if you signed a loan agreement on a fixed rate at say five year fixed of 4.5%. If AIB then changed its five year fixed rate to 4.75% and this was applied to your account on drawdown of the funds then AIB should have offered you the opportunity to go on their prevailing tracker rate at the time. As far as I know the best place to find the prevailing tracker rate is to subscribe to the Irish Times and in their back issues the Property Pages printed a table of all banks Tracker and Fixed Rates each week, (which I think was on a Thursday).
 
Skippy,

I don't think that AIB had press releases for all changes to their interest rates. In my view if someone needs to establish what rates were at a certain time then the Irish Times as set out in my earlier post is the best place. See the attached extract from the Irish Times for AIB and BOI at a certain date.
 

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Trackscandal said:
Skippy,

I don't think that AIB had press releases for all changes to their interest rates. In my view if someone needs to establish what rates were at a certain time then the Irish Times as set out in my earlier post is the best place. See the attached extract from the Irish Times for AIB and BOI at a certain date.
Click to expand...

When were those rates published?
 
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