AIB Tracker rate confirmed - 300 cohort - 1.5%

[aibredress]

Hi all,

Our Mortage rate has just been changed to 1.5%, this means the tracker is set at 1.5%.

I’m part of the cohort 300 and have no special conditions.

thanks for everything Brendan

 

[aibredress]

When did your fix rate end?

 

[Smokey]

Me too mine has been reduced to 1.55% on 7th Sept.

 

[Lily52]

Just checked mine and it’s 1.55 - thanks for the update. I look forward to seeing the new monthly repayment (not due out until the 20th September).

 

[Ericson]

I came off fixed rate in November 2008

 

[Balfour]

Me too mine has been reduced to 1.55% on 7th Sept.

Does anyone know what is the different LTV bands, ie 1.5%, 1.55% & 1.74%

 

[MarkMul]

See mine now. 1.55%

Owner occupiers with LTV > 80% when fixed rate finished

 

[Brendan Burgess]

Mine changed to 1.74% I see online tonight. Also part of 300 cohort. Why the difference I wonder

Hi ericson

What was your Ltv?

Was it your home or an investment?

 

[aibredress]

I think it might be the date, the date we came off the fixed rate was the 13th of October, this was 3 days after they stopped issuing them. We actually stated this in our rejection to BDO but our claim was thrown out, crazy how bad BDO were.

 

[Brendan Burgess]

I think it might be the date,

Very unlikely.

 

[MarkMul]

Very unlikely.

agreed, we came off in December

 

[MarkMul]

Clarification:

Rate: 1.55%

my initial though was that our LTV was > 80% but I'm not so sure now as while the recession had started new builds in our estate went for 25% more in 2008 than we paid in 2006.

Im not sure how AIB knew this though as I'm quite sure i didnt tell them. All I was interested in at the time was getting off an expensive Fixed rate

 

[Brendan Burgess]

AIB uses the original LTV for all rate decisions.

They didn't change it when prices rose or fell.

Brendan

 

[aibredress]

I think it is dated, if you look at the original aib tracker redress book which had the graph on it showing the "probable rates" they changed each month and with mine being October and your being december.

 

[Brendan Burgess]

This was the rates matrix in June 2008 when they last changed the tracker margin.

The ECB rate was 4% at the time. So the margin on a mortgage of >80% LTV and <€500k was 1.5%.

So they probably used the same combination of LTV and mortgage amount.

Brendan

 

[jpbyrne]

This was the rates matrix in June 2008 when they last changed the tracker margin.

The ECB rate was 4% at the time. So the margin on a mortgage of >80% LTV and <€500k was 1.5%.

View attachment 4951

View attachment 4952
So they probably used the same combination of LTV and mortgage amount.

Brendan

If ECB was 4%, where is the Bank getting a 1.74% margin from that table ? I can see the 1.5%.

 

[Brendan Burgess]

If the tracker margin isn't determined at the start of the mortgage,

The tracker margin is not determined at the start of the mortgage for those with clause 3.2.

The contract is clear and not open to any other interpretation:

The "then prevailing" clearly refers to the "end of any fixed interest rate period" and not the start of any fixed rate period.

Brendan

 

[Brendan Burgess]

I came off the fixed rate 13 days after they withdrew trackers, it should be 1.5% but they've changed our rate to 1.74%...doesn't make any sense.

Hi Catlen

Wait until you get the letter to see their explanation.

My understanding is that they had prepared a schedule of rates with a view to announcing an increase in margins.

Then they decided to withdraw trackers for new customers and to stop offering them to existing customers who had a contractual entitlement.

So they are giving you the rate that they had planned to announce.

Definitely one of you on the higher rate should take it to the Ombudsman. But wait until you get the letter.

Brendan