Former First Active now Ulster Bank Customer

Discussion in 'Issues with tracker mortgages' started by Milo4444, Feb 3, 2017.

  1. Laurloll20

    Laurloll20 New Member

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    Last edited: Apr 18, 2017
    Hi thanks for the reply ... it's says it was a discounted variable rate of 3.13% saving of 0.4% for the first 24 months. Then the contract outlines I will pay 50 more on the repayment for the remainder of the mortgage of 336 months.
    After the first 24 months I received a letter only outlining fixed rates of 2 . 3. 5. And 10 years that I must choose from no other options. I fixed at 2 years then received the same letter at the end of that term no option only fixed rates again.
    I also only received their "standard mortgage. General terms and conditions . Effective 18 Feb 2004" it with the original mortgage loan agreement. The loan agreement itself was typed and specific to me not a general agreement. No mention of tracker anywhere.
    I must point out I was clueless when I took out the mortgage as I was 21 and no help or guidance from anyone
     
    Last edited: Apr 18, 2017
  2. Monbretia

    Monbretia Frequent Poster

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    Then you started with a variable rate mortgage that had a discount applicable to that rate for the first two years. You never had a tracker so were not deprived of your tracker mortgage. I don't know when tracker mortgages actually started in FA but can't have been too popular initially as no one saw the ultimate value at that stage. At the time the mortgage rate you took may have appeared the best option for your situation at that time, now if we all had crystal balls there would be a lot of things done differently :)

    Actually just found this and it looks like they started in Jan 2004 and were initially limited to loans over 250k

    http://www.independent.ie/business/...nches-ecb-rate-tracker-mortgage-26019913.html
     
  3. Laurloll20

    Laurloll20 New Member

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    Thank for the explanation it's so confusing. Just seems strange UB would automatically give me a tracker plus a small fixed in 2011. Thanks again
     
  4. Monbretia

    Monbretia Frequent Poster

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    Did your 2011 letter say that you were being offered a chance to go back onto your tracker? How could that be if you never had one, or was it just some special offer at the time. That's not a particularly small fixed amount over ECB though, most original trackers were well below that margin. What rate are you on now?

    Unless there was some almighty mess up when they were reviewing old loans and somehow thought you had been on something else, it makes no sense otherwise. Maybe that's a good deal now as if you go back to the beginning of your loan then there clearly wasn't a tracker option for loans under 250k, I'm assuming your loan was under that.
     
  5. Laurloll20

    Laurloll20 New Member

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    Sounds like a mistake on their behalf. I'm on the same rate since 2011 my monthly payment only goes up if the ecb rate goes up.
    I have never received a rate letter since then.
     
  6. Monbretia

    Monbretia Frequent Poster

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    It does sound like a mistake but sure if it's to your benefit then all is good! When the total amalgamation of FA/UB took place in 2010 I think some stuff was muddled. I have seen customers offered compensation for mis-selling of repayment protector where there was no error in the selling, there was a clear lack of knowledge by whoever was reviewing the case, so mistakes do happen!