Fixed Rate Ending

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swiggy

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Hi

I had a tracker mortgage with BOI but fixed it for 2 years. The fixed rate period is now up and BOI are offering me a fixed and variable rate. I have checked the loan agreement but it does not state what type of mortgage I will move on to when the fixed term is up. I asked the financial advisor in the bank in case I was missing it in the document but he told me no there was nothing to say what rate I would go onto when the fixed period was up but that I automatically would roll onto the variable rate. I could not go back to the tracker rate.

At the time of fixing I was told that I could go back onto tracker but of course this was only verbal. I understand that banks are no longer offering tracker mortgages any more but I was just wondering do I have any comeback on this before I sign for the new rate?

Many thanks
 
Not my line of expertese but the Tracker Mortgage as a product is no longer available AFAIK, having said that you could try to shame them into reinstating your old agreement. I would say that they would rather loose you as a customer than give you a tracker mortgage as they cannot generate income from that type of product in these hard times.
 
No expert either, but I'd definitely have thought there'd have to be something telling you what happens at the end of the fixed term.
 
Hi Swiggy,

If you were told that you go back on the tracker at the end of the fixed period then that is what should happen. Do you remember who told you that and when they said it?

Kate.
 
What type of fixed rates were they offering? The variable is due to drop to 3.2% with BOI shortly so id hold off until then if you were considering a fixed rate.
 
Thanks for all the replies. Yes I was on a tracker originally for 2 years until March 2007 and then I fixed for 2 years. I am not going to fix the rate, I want to go back to tracker but the bank is not offering me that, so the alternative is variable.

I was told verbally by the mortage advisor in BOI at the time I was fixing that I could go back to the tracker but she has now left and the new mortgage advisor tells me that they are no longer offering trackers. I don't have anything in writing and yes I have looked at my mortgage agreement and there is nothing to say what I revert to upon expiry of fixed rate and the new mortage advisor confirms this.
 
swiggy said:
Thanks for all the replies. Yes I was on a tracker originally for 2 years until March 2007 and then I fixed for 2 years. I am not going to fix the rate, I want to go back to tracker but the bank is not offering me that, so the alternative is variable.
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If no new rate is mentioned in the contract then they are on very shaky ground trying to force you to change.
 
Once you made the decision to switch from a tracker to a fixed rate you effectively cancelled your original agreement with the bank and took out a new contract of a fixed rate for 2 years. At the end of the fixed rate you can then switch to another rate provided by the bank, if at that time they don't have a tracker rate they can't offer you one.

Sorry to be negative but my understanding is you walked away from a tracker rate; the bank has no obligation to offer you another one when they are no longer selling trackers.
 
thanks Shaking. The bank needs to state this on the agreement that I signed. If it did I would have no problem accepting the fact that I would not be offered a tracker rate upon the expiry of my fixed rate.

No where in my agreement does the bank say what rates would be on offer upon expiry of the rate and indeed it does not even contain a provision to say the rates they will offer will be at their discretion. I am not a solicitor but I am sure the banks have it covered somehow. I just I cannot see it in my mortgage agreement.
 
jhegarty said:
But the contract didn't say that.
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As has been said the original contract would have been out the window when the fixed rate was taken out. If the new contract does not commit to the terms in respect of the period after the two years, it does not mean the original contract has to be honoured.

I'd advise everyone to have a good read of the terms and conditions on their mortgages or at least have them explained to them by someone knowledgeable that they can trust.

The culture of not reading contracts just won't cut it anymore.
 
You're not going to get a tracker from them verbal agreements meean nothing and you have ntohing in wiritng saying you can avail of a tracke rafter a fixed rate is up. I'd forget about it.
Usually the original tracker form you sign would specify that a tracker is once off agreement and once you come off it you can't go back on it.

Trackers are products like anything else if they're not selling them anymore you can't buy it. Same way you can't say I want a fixed rate of X because at one stage you offered it. BOI variable rate is pretty good at the moment.
 
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