AIB I got two cheques for €1,615

[Summercruising]

I took out my mortgage in August 2008 - portion on fixed and balance on variable rate so 2 letters of offer. 3.2 Clause on both. I did fix the variable rate portion about a year later - possibly 2009 - I received 2 cheques for €1615 so I’m hoping I’ll be restituted for full amount of mortgage. Am I correct to assume if you requested your variable rate to be change to fixed rate during the time in question (2008-2013) that same t&c’s applied as per 3.2?

 

[Brendan Burgess]

Yes.

The term says "at the end of any fixed rate period". So you should get both.

When you say you took out a variable rate in August 2008, why did you not take out a tracker then when it was available?

I can understand why people chose a fixed rate over a tracker rate. But I don't really understand why they chose a variable rate over a tracker rate.

Brendan

 

[Summercruising]

Thanks Brendan,
I can’t fully recall but that variable portion was a staff preferential rate (I’m ex-staff) and presumably at the time considered better value! I’m hoping they’ll take BIK considerations into account when calculating restitution amounts as when I came off fixed rates later on would have gone onto preferential rate for different periods of time - so the excel spreadsheet of rates wouldn’t account for the tax element I paid. Anyhow I’ll know soon enough anyway and thanks again for all you’ve done for all of us in this cohort.

 

[Megafan]

I took out my mortgage in August 2008 - portion on fixed and balance on variable rate so 2 letters of offer. 3.2 Clause on both. I did fix the variable rate portion about a year later - possibly 2009 - I received 2 cheques for €1615 so I’m hoping I’ll be restituted for full amount of mortgage. Am I correct to assume if you requested your variable rate to be change to fixed rate during the time in question (2008-2013) that same t&c’s applied as per 3.2?

Same with the two cheques for us, though we fixed both parts of our mortgage for 1 year each as the start of each portion so slightly more clear cut that no tracker was offered at the end of the fixed rate on each, which was late 2009/early 2010.

I had wondered, though there may be no way to prove this, as to whether mortgages for ex staff (or maybe current staff also) was inflating the 5904 number in the cohort somewhat, in that AIB admitted service breach in for both mortgages, as distinct from one mortgage holder. The structure was very much two mortgage docs, two separate payments and the ability to fix both mortgages over different time frames. It will be interesting to see what emerges over the next few weeks if we are lucky enough to have redress confirmed.