AIB Good news if your AIB Fixed rate ended between 10 October 2008 and 12 January 2009

Brendan Burgess

Founder
Messages
41,544
Update : End date changed to 12 January - Brendan


1) You will be getting an interest refund based on a tracker margin of between 1.45% and 1.74% depending on LTV.

2) You will be getting 15% of the interest refund as automatic compensation for the stress and you can go to the Appeals Panel if you think you deserve more.

3) You will be getting a tracker at this rate for the remainder of the term.



If you still have your mortgage with AIB

Under the Ombudsman 12% scheme,let's say you get a €20k capital reduction and €10k interest refund.

If the redress arising from giving you a tracker is more than this, you will be paid the extra.
If the redress is less, you will get the Ombudsman scheme.

Under the "tracker restored" scheme, the redress would usually be €10k capital write down and €20k interest refund.

So you will get the refund in cash per the Central Bank scheme and you can then pay that off your mortgage if you wish.



If you have cleared your mortgage

The same principle applies, but in most cases, the refund due under the Ombudsman Scheme will be higher than under the tracker restored scheme.
 
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Brendan Burgess

Founder
Messages
41,544
User AIBRedress has updated us today.

I just got off the phone, this is what has been explained to me:

We are getting a €5,000.00 payment this month as a part payment against the redress/compensation. This can be lodged without any issues and is not accepting the offer.

As it will take time to work out figures of the compensation and redress, they are estimating it will be the end of October before the balance is paid.

The tracker will be re-instated at start of September. They could not confirm the percentage at the moment.

A letter will be sent out at the end of August with figures and information.

He informed me that they only got clarification on this on Thursday and Friday and can now discuss with the affected people.


Borderline cases
A couple of things on this. Firstly we’ve gone with the 12 Jan as a cut off point to give some extra room and take into consideration the Christmas period.

In terms of your query:

Breaking from fixed rate cases are in the group and if a breakage fee is due and the breakage is paid on or before the 12 Jan it’s in the group (even if the break was actioned after the 12th).

Some cases did not require a breakage fee and as long as requests were received up to and including the 12 Jan they are included in the group.

There are also a small number of borderline cases we included where we felt there was a delay on our side that brought them past the 12th.



Frequently Asked Questions

My fixed rate was due to finish in 2010, but I broke out early before 12 January 2009. Am I in the 300 cohort?


Yes. AIB has confirmed this.

Why are these guys getting trackers?

The Central Bank insisted that had AIB complied with the terms of their contract, they would have increased the tracker rate instead of withdrawing it in October 2008. However, based on the experience of previous changes to tracker rates, it would have taken AIB 12 weeks to implement that change.

So the Central Bank insisted that AIB give all those customers the tracker rate which would have existed during that 12 week period


Brendan
 
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Catlen

Registered User
Messages
44
Hi Brendan, so did they confirm that everyone else should have received the write down by now and if you haven't you are one of the 300? I broke out of a fixed rate in 2008 but took out another fixed rate and was going by the date that expired... but maybe they are going by the 2008 date!
 

Sambo123

Registered User
Messages
12
Hi Brendan


we came off fixed in dec 08 - but then moved to another bank in jan 20’. If we are one of the 300 is there any guidance on what will happen to us seeing as we have moved ? Do we just get the 12pc + interest via cheque by end of August or do you envisage more ?
 
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Brendan Burgess

Founder
Messages
41,544
we came off fixed in dec 08 - but then moved to another bank in jan 20’.
You will get the redress calculated on the restoration of the margin.
You will get 15% compensation.

If you switched for a better rate and not for a trade up, then you will be able to make a case that you would not have switched had you been on the right rate.

They will probably offer to take you back at the tracker rate.

Brendan
 

Balfour

Frequent Poster
Messages
178
Brendan

Sorry now, I just want to clarify one thing?

I am one of those people whose fixed rate ended between 10.10.2008 - 5.01.2009,

Will I be getting the following;

1).12% capital reduction,
2). interest rate reduction up to August 2020 and
3). a tracker rate for the remaining term of the mortgage?


As always, thanks in advance
 

Brendan Burgess

Founder
Messages
41,544
Hi Balfour

1) They will calculate the overcharge based on giving you a tracker from the date you finished.
2) The interest overcharge should be a bit higher than the 12% + interest on the 12% , so they will give you the higher figure
3) Let's say your total interest overcharge was €40k. This would usually result in a cheque for €30k and a balance reduction of €10k.
4) They will give you 15% of the €40k or €6k as compensation for stress.
5) They will put you on a tracker of about 1.74% for the remaining term of your mortgage.

Brendan
 

Sambo123

Registered User
Messages
12
You will get the redress calculated on the restoration of the margin.
You will get 15% compensation.

If you switched for a better rate and not for a trade up, then you will be able to make a case that you would not have switched had you been on the right rate.

They will probably offer to take you back at the tracker rate.

Brendan
Thanks Brendan - sounds like it will be end of August so will let you know
 

rustbucket

Frequent Poster
Messages
410
Wow. That is an interesting development. Is there any way an additional calculation can be inserted into the spreadsheet to take account for this @October2019 ?

Although our account is closed we have a new mortgage with AIB. I don’t suppose there is any way they would apply the tracker to the new mortgage? (Wishful thinking)
 

Brendan Burgess

Founder
Messages
41,544
Although our account is closed we have a new mortgage with AIB.
Are you in the 300 cohort?

If so they will have to treat you as if you had a tracker.

So if you traded up at a time when AIB had a tracker mover product available, they will offer that to you.

That usually involved an increase in margin of 1% , so you will probably move from 1.74% to 2.74%.

Worth thinking about.

Brendan
 

rustbucket

Frequent Poster
Messages
410
Are you in the 300 cohort?

If so they will have to treat you as if you had a tracker.

So if you traded up at a time when AIB had a tracker mover product available, they will offer that to you.

That usually involved an increase in margin of 1% , so you will probably move from 1.74% to 2.74%.

Worth thinking about.

Brendan
Yes I believe we are in the cohort as our fixed rate ended end Oct 08.

We sold our property in Sept 2016. We traded up Dec 2016.

If we were on a tracker at the time we would have availed of moving it to the new property for sure even with a 1% increase.

I see various posts from 2014-2016 saying AIB had tracker movers (and still do) at plus 1% additional so it existed at the time we moved.

Definitely worth thinking about. Thank you.
 

Brianios

Registered User
Messages
33
Hi,

Can I ask people how do they know what date they dropped from fixed to variable etc.

I have full statements from 2008 to 2020 and cant see anything other than interest rate changes.

For example on 21 Jan 2009 I went from 5.250% to 3.750%. No idea if this is a change from one type to another or just a rate change on a variable.

Really confused. What document would give me type of mortgage?

Thanks
 

Brianios

Registered User
Messages
33
Actually I see in the top of each page now - started on 3yr fixed 5.250%, changed to CMR? Would anyone know what CMR means?

21st Jan 2009 moved to 3.750% so I guess this means I missed the boat on this one?
 

October2019

Registered User
Messages
114
Wow. That is an interesting development. Is there any way an additional calculation can be inserted into the spreadsheet to take account for this @October2019 ?

Although our account is closed we have a new mortgage with AIB. I don’t suppose there is any way they would apply the tracker to the new mortgage? (Wishful thinking)
That’s a bit trickier as it will involve working out the difference between what you should have paid had you been on a tracker and what you actually paid, so your balance matters whereas with the ombudsman’s decision you just needed to calculate 12% of your balance on a given date and the interest on that amount
 

tnegun

Frequent Poster
Messages
339
Thanks again for your time and effort Brendan. How was the meeting itself? I guess these guys conduct themselves very differently to the AIB execs? This is very interesting for us we were in correspondence with AIB for my options in Jan 2009 and was quoted breakage fees and offered Interest Only for 12 months to buy time and figure out what to do which it took. I'm outside the time frame but I'm going to certainly make reference to it in my claim for additional compensation.
 

rustbucket

Frequent Poster
Messages
410
That’s a bit trickier as it will involve working out the difference between what you should have paid had you been on a tracker and what you actually paid, so your balance matters whereas with the ombudsman’s decision you just needed to calculate 12% of your balance on a given date and the interest on that amount
I thought it might. I previously downloaded it and input all the details including many changes in interest rates and got a figure off a capital balance of 417k.

if I just input the tracker rate (assuming higher rate) for a constant rate that should give me the interest that I would have paid right?

would it just be the difference between the two figures then?
 

Ericson

Registered User
Messages
24
Fixed for 3 year years at 4.9% in September 2007. Opted out myself in November 2008 for better variable rate of 4.5% as thought rates were going to keep dropping. . Looks like I am in 300 cohort for 12 week window.

Fixed again for 3 years in 0ctober 2009 at 3.19%. I had always thought I was included in 5,600 cohort from 2012 as I should have been offered tracker rate then and not 2008 as I opted out myself
 
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