Ulster bank put me on to tracker rate 2.4%+ecb

Discussion in 'Tracker mortgages - other than redress issues' started by DOM2000, 6 Sep 2018.

  1. DOM2000

    DOM2000 New Member

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    I'm in a similar position with Ulster Bank (formally First Active) with a slightly higher tracker rate of 2.40% + ecb. Is it wishful thinking that I might be on too high of a rate? How can I find out please.

    My situation is:

    - Drew down mortgage in Oct 2008 on a 2 year fixed rate of 6% with First Active.
    - Oct 2010 I went on to a 2.40% + ecb tracker rate then taken over by Ulster Bank.

    I don't have the original mortgage loan agreement, or rate changes but do have copies of all my mortgage statements dating back to the first payment.

    Thanks.
     
  2. Brendan Burgess

    Brendan Burgess Founder

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    There really is no point in posting here without knowing what was in your mortgage agreement. Get a copy from Ulster Bank if your solicitor doesn't have it. Then come back here if it's not clear.

    Brendan
     
  3. DOM2000

    DOM2000 New Member

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    It took a while but I received a copy of my original loan agreement. I'm not sure how to decipher if the rates are correct but any information gratefully appreciated.

    Notes on the document:

    - I signed the loan agreement in July 2008
    - Loan Type: New Fix 5.05% until 310510 - ECB+1.15%
    - Interest Rate: 5.05%
    - Interest Type: Fixed

    Any other information I need to provide?
    Thanks.
     
  4. Brendan Burgess

    Brendan Burgess Founder

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    You need to type the words verbatim.

    Or else scan in a copy of the bit about rates.

    Brendan
     
  5. DOM2000

    DOM2000 New Member

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    Lines 2-4 below are verbatim. I have attached a screenshot.

    - Loan Type: New Fix 5.05% until 310510 - ECB+1.15%
    - Interest Rate: 5.05%
    - Interest Type: Fixed
     

    Attached Files:

  6. Brendan Burgess

    Brendan Burgess Founder

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    Last edited: 4 Nov 2018
    Wow!

    That is a meaningless and contradictory phrasing. Unbelievably sloppy.


    The ECB rate at the time of this letter of offer was 4% ( it rose to 4.25% on 9 July which was probably after your offer)

    So it seems as if they are saying : "Your fixed rate is 5.05%. By the way we have calculated by adding 1.15% to the ECB rate i.e. 4% + 1.15% = 5.15%.

    They probably have a clear wording elsewhere. " After any fixed rate period you will go onto our then prevailing tracker rate."

    But given the contradictory nature of the wording, I think that you should claim ECB +1.15% from 31/05/2010

    So you must look at the overall wording of the contract.
    Brendan
     
    Last edited: 4 Nov 2018
  7. tomo69

    tomo69 Registered User

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    I have a very similar loan offer agreement, but they have put me on tracker +2.15 ,notified in August we we're impacted.very similar dates to you to Dom2000 when we signed or loan agreement.
     

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  8. DOM2000

    DOM2000 New Member

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    Last edited by a moderator: 4 Nov 2018
    Thanks Brendan,

    Just to add, the initial loan offer letter was issued on June 19th, 2008. I signed it on July 29th, 2008 and then I drew down the loan circa October 2008. I will need to confirm the exact date for the drawdown.
     
    Last edited by a moderator: 4 Nov 2018
  9. Brendan Burgess

    Brendan Burgess Founder

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    This is what an AIB letter of offer looks like

    upload_2018-11-4_13-29-13.png
    upload_2018-11-4_13-29-47.png

    Your letter doesn't seem to have any of this detail.

    If I were Ulster Bank, I might argue "Well isn't it obvious? You fixed for three years and after that everyone knows that a mortgage is variable"

    But you can argue: "Well can you not see that it says ECB +1.15% which was a typical tracker margin at the time?"

    What did the Compensation letter say? I can't see where the 2.4% margin comes from?

    Brendan
     
  10. DOM2000

    DOM2000 New Member

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    Thanks Brendan,

    I am only at the investigation stages and haven't been told by Ulster Bank at any point that I have been impacted. I was curious to see if I should fall under the list who have. My property is currently in negative equity and a redress, if applicable, would allow me to move finally back towards positive.

    The ECB (which I think was 1% at the time) +2.4% was given when I moved off the two year fixed rate in Oct 2010.
     
  11. Brendan Burgess

    Brendan Burgess Founder

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    OK

    So the margin of 2.4% was the prevailing margin in October 2010.

    Tomo

    What were you on before the 2.15% rate?

    I suspect that is the tracker rate which prevailed on the date you came off the fixed rate.

    Brendan
     
  12. tomo69

    tomo69 Registered User

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    We we're on 6.25 fixed till May 2009 when we bought out of fixed contract, variable/ fixed from then on .
    Signed loan agreement:4/07/08
    Drew down 21/07/08
    Rates did go up 09/07/08
    I presume I would have lost my right to the 1.15 tracker , is this stated in there t&C's?