We are in the position of finally getting our tracker back, having lost it in 2010, and I will write the whole story up once we have it all resolved as I am very grateful for all the advice and pointers I have read on this forum! But, in the meantime, I would be really grateful for any advice on a few specific points. Here are the details:
2004: Took out loan of €166k over 18 years on a Tracker rate ECB + 1.05%
(At the same time, we also took a separate amount for 25yrs and this has remained on a Tracker ever since, so we have been painfully aware of the cost to us of having lost the tracker on the first part of the loan!)
By 2007, both accounts above had reduced in their rates to ECB + 0.75% (reduced LTV)
Aug 2007, fixed the 18yr mortgage for 3 years
Sept 2010, upon exit from Fixed, mortgage moved to SVR as we were told Tracker was no longer available to us.
2015: bank prepared to offer us our Tracker back 'as a gesture of goodwill, and on an exceptional basis' - but they're offering ECB + 1.05%, our original rate, rather than the rate which we were at when we fixed, and which we had requested return to. This is what we thought we would be returning to, and it's what the other sub account is still on ... can we press for this rate?
Also - very confusing wording regarding the refund they will be calculating is due to us. To read it, you'd think we'll actually be out of pocket, once they're done! Can anyone reassure me that this all sounds right? How will our capital be greater once they refund us the interest they overcharged? Surely it's the interest we overpaid, not the capital? And - they say if we leave the refund on the account, the balance will remain unchanged ... surely if we apply the refund to the mortgage account, the amount of capital outstanding would be substantially reduced?! "Once calculated, the Bank will allow you to remove this overpayment from your mortgage account. Please note however that if remove [sic] the overpaid amount from your mortgage, the balance of the mortgage will increase accordingly. Alternatively, you are free to leave the overpaid amount on the account meaning that the outstanding balance will not change."
And there is mention of the fact that we never actually paid the interest ... can't make head nor tail of that. The wording seems geared towards encouraging us to leave the refund in the account. But we are entitled to ask for it in our current account, isn't that correct?
"It is important to note that while this was a charge which was applied to mortgage it [sic] this was never actually paid by you and therefore will not be available to be refunded directly to you. However, the removal of the interest rate will have the affect [sic] of reducing the balance of your mortgage."
And one final thing - we made capital repayments against this mortgage during the past few years, amounting to €42,000 (€30k in 2011 to reduce the repayments, and €12k in 2014 to reduce the term) - almost all of our savings - so we've lost out on interest, albeit at paltry levels, as a result of being on the incorrect rate. Is it too late to do anything about that?
Thank you for any and all advice
2004: Took out loan of €166k over 18 years on a Tracker rate ECB + 1.05%
(At the same time, we also took a separate amount for 25yrs and this has remained on a Tracker ever since, so we have been painfully aware of the cost to us of having lost the tracker on the first part of the loan!)
By 2007, both accounts above had reduced in their rates to ECB + 0.75% (reduced LTV)
Aug 2007, fixed the 18yr mortgage for 3 years
Sept 2010, upon exit from Fixed, mortgage moved to SVR as we were told Tracker was no longer available to us.
2015: bank prepared to offer us our Tracker back 'as a gesture of goodwill, and on an exceptional basis' - but they're offering ECB + 1.05%, our original rate, rather than the rate which we were at when we fixed, and which we had requested return to. This is what we thought we would be returning to, and it's what the other sub account is still on ... can we press for this rate?
Also - very confusing wording regarding the refund they will be calculating is due to us. To read it, you'd think we'll actually be out of pocket, once they're done! Can anyone reassure me that this all sounds right? How will our capital be greater once they refund us the interest they overcharged? Surely it's the interest we overpaid, not the capital? And - they say if we leave the refund on the account, the balance will remain unchanged ... surely if we apply the refund to the mortgage account, the amount of capital outstanding would be substantially reduced?! "Once calculated, the Bank will allow you to remove this overpayment from your mortgage account. Please note however that if remove [sic] the overpaid amount from your mortgage, the balance of the mortgage will increase accordingly. Alternatively, you are free to leave the overpaid amount on the account meaning that the outstanding balance will not change."
And there is mention of the fact that we never actually paid the interest ... can't make head nor tail of that. The wording seems geared towards encouraging us to leave the refund in the account. But we are entitled to ask for it in our current account, isn't that correct?
"It is important to note that while this was a charge which was applied to mortgage it [sic] this was never actually paid by you and therefore will not be available to be refunded directly to you. However, the removal of the interest rate will have the affect [sic] of reducing the balance of your mortgage."
And one final thing - we made capital repayments against this mortgage during the past few years, amounting to €42,000 (€30k in 2011 to reduce the repayments, and €12k in 2014 to reduce the term) - almost all of our savings - so we've lost out on interest, albeit at paltry levels, as a result of being on the incorrect rate. Is it too late to do anything about that?
Thank you for any and all advice
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