Ex AIB staff and TIRR

Poppies12

New Member
Messages
3
Hi, we received a letter from AIB early December advising our current mortgage has been identified during their Tracker Mortgage Examination. We moved house in 2014, and even though we asked about the possibility of keeping the ECB rate on our new mortgage, we were laughed out of the bank.
I’m looking for help/advice on calculating what kind of refund we’d be due, also what compensation? Unfortunately, due to ill health I don’t have the head space to be able to do this myself, all help gratefully appreciated.
Details: mortgage 100,000 drawn down 4/9/14 at rate 4.09%, rate changed to 3.85% on 1/12/14. We fixed at 3.90% on 23/12/2014 for three years. Rate 3.15% on 23/12/19. Fixed at 2.85% from 31/12:19, rate 1.60% from 20/12/2031.
Thanks
 

Brendan Burgess

Founder
Messages
47,214
Hi Poppies

Was it just a general "We have identified an issue and will be back in touch when we have calculated it." letter?

If so, just wait and see.

It looks as if they should have allowed you to move the mortgage with an additional 1% margin.


It's very odd that they did not allow this at the time. Were you aware of the tracker mover product?

Brendan
 

Brendan Burgess

Founder
Messages
47,214
What was the margin on the tracker before you moved?

In very rough terms, assuming it was 1% , you should be paying a rate of 2% today.

So you were overcharged by about 2% from 9/14 to 9/17.
You were probably overcharged by about 1% from 9/17 to 9/21 another 4 years.

3 years at 2% + 4 years at 1% = 10%

With an average balance of around €90,000

The overcharge would be about €9,000.

That is only the rough order of it.

The compensation is usually about 15% so, say another €1,500

Brendan
 

Poppies12

New Member
Messages
3
Thanks for that Brendan,
It was just a general letter stating we were eligible to apply for the TIRR in 2014 as our original mortgage was on it. We asked about it, but as I say, we were laughed out of the branch. The tracker margin was 0.60% plus an additional margin of 1.00%, which we’re on now since 20/12/2021.
 

Brendan Burgess

Founder
Messages
47,214
My revised, but very rough estimate

So you were overcharged by about 2.4% from 9/14 to 9/17.
You were probably overcharged by about 1.4% from 9/17 to 9/21 another 4 years.

3 years at 2.4% + 4 years at 1.4% = 13%

With an average balance of around €90,000

The overcharge would be about €12,000.

The compensation would be about €2,000
 

Poppies12

New Member
Messages
3
Yes Brendan,
Here’s a paragraph from their letter: “If you choose TIRR now we will apply the rate to the full balance on your account. We will also calculate any redress and compensation that may be due on the portion of your loan that was eligible for TIRR, from the date you opened this account “.
 
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