AIB Started on SVR, but fixed, should I have been offered prevailing rate?

Sadim

Registered User
Messages
13
A question related to the prevailing rate mortgages.... a borrower drew down a mortgage with AIB in 2004 and the contract included the infamous Clause 3.2 with its 3 options upon the expiry of a fixed rate term. In this case, the borrower never had a tracker to begin with and was on SVR since drawdown but fixed for two separate terms on 5th Feb 2007 and subsequently 16th August 2010. He received his €1615 letter in March 2018.

Should Clause 3.2 still apply ie. should he have been offered a tracker rate and does he come within the scope of the impending decision of the FSPO??
 

Brendan Burgess

Founder
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39,541
Yes. The clause is very clear. "At the end of any fixed rate period..."
4300

The fact that he got €1,615 shows that AIB has deemed him impacted.

Brendan
 

Sadim

Registered User
Messages
13
Yes. The clause is very clear. "At the end of any fixed rate period..."
View attachment 4300
The fact that he got €1,615 shows that AIB has deemed him impacted.

Brendan
That opens up a right Pandora's Box then? I would have thought 3.2 was a fairly standard term that was applied to nearly all but specialist mortgages? Does it mean that any mortgage with the offending 3.2 could fall within the scope of the Tracker Redress, assuming FSPO decision is final, notwithstanding the mortgagor never had or lost a tracker to begin with? Maybe there's more than 6,000 cases?
 

elcato

Moderator
Messages
3,337
I think anyone who had the clause 3.2 have received the standard payout of €1615 already so the bank has effectively deemed them impacted and are included in the 6000.
 

Brendan Burgess

Founder
Messages
39,541
Agree with elcato.

If you had 3.2 and fixed at any time you are covered. And you should have got €1,615

If you had 3.2 and did not get €1,615 , then you should find out why.

If you had 3.2 and never fixed, then it's not relevant.

But I think that 6,000 people qualify as a Pandora's Box.

Brendan
 

Sadim

Registered User
Messages
13
Agree with elcato.

If you had 3.2 and fixed at any time you are covered. And you should have got €1,615

If you had 3.2 and did not get €1,615 , then you should find out why.

If you had 3.2 and never fixed, then it's not relevant.

But I think that 6,000 people qualify as a Pandora's Box.

Brendan
Yes, fair enough. When I think about it 3.2 was to be activated when a fixed term ended.
 

Brendan Burgess

Founder
Messages
39,541
1) There was no clause 3.2 before tracker mortgages were introduced
2) It was taken out of contracts in early 2009 (I think) after AIB stopped issuing tracker mortgages to new customers
 

Sunshine39

Registered User
Messages
15
Thanks Brendan. I took out a staff mortgage at the end of 2005. I requested a copy of my contract last year and it didnt seem to have the clause in it, although it wasn’t the complete document ( I will follow up again for a full copy). I didn’t get the €1650 but I’d like to make sure I haven’t fallen between the cracks. I wonder were contracts for Staff mortgages different to other customers?
 

LolaG19

Registered User
Messages
15
Sunshine 39 I have a staff mortgage and clause 3.2 is included. I received cheque for €1,615 you should raise this with AIB
 
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Sunshine39

Registered User
Messages
15
Thanks LolaG19. When did you take it out? I do think trackers were available in 2005 but they may have amended the offer letters after mine...fingers crossed tho!!
 

Sunshine39

Registered User
Messages
15
In case it’s useful to anyone else, I think the answer is November 2005. I have found a letter from staff business offering their ‘new tracker product’ to existing homeflex customers. Took mine out in August 2005, guess that’s the end of that! Good luck to you all. Brendan, you’re an inspiration and thank you and everyone here for the help and encouragement on all financial matters.
 
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