AIB Why would AIB not just give the 6000 cohort the last available tracker margin of 1.5%?

Is it not in the best interest of AIB and its shareholders (70% owned by the state) to try and put this tracker scandal behind them and just concede that they did not withdraw the tracker for the 6000 cohort?

This settlement will be very much welcomed by many but will it not just enrage further those who have 20+ years left on their mortgage contracts and who should now be on a tracker rate?

AIB should now be taking this opportunity to put the tracker scandal behind them and to put their customers first!

They absolutely should but they won't. Again and again the banks have given nothing without being forced to. Grateful to the ombudsman for what we are getting but disappointed he dodged the primary issue that caused the problem in the first place: That we weren't offered a tracker when our fixed rate ended.

I agree....it will be interesting to see the decision of the Ombudsman.

Can it really cost AIB much more to do the right thing?

I’m really curious as to why the ombudsman coujd not decide on a retrospective rate. I think that’s a can of worms. But we will await his report.

I assume AIB will have to offer some tracker option? But without instruction from the ombudsman or the central bank it be at an unattractive rate. Like the crazy rate they offered with the €1615 cheque.

blue_steel said:

I assume AIB will have to offer some tracker option? But without instruction from the ombudsman or the central bank it be at an unattractive rate. Like the crazy rate they offered with the €1615 cheque.

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My understanding is there is no new rate being offered. Your current rate is your current rate. Only thing is your mortgage is reduced by 12% from where it was in 2010. That’s the deal.

Am wondering what the term left on Karens mortgage in 2010 was? If it was 20 years then the FSPO split the difference and she got equilvent of 10 at a tracker of 1.5% in the write down and interest refund and then remaining 10 variable. So as he could not decide what the rate was he split it down the middle?

tnegun said:

Am wondering what the term left on Karens mortgage in 2010 was? If it was 20 years then the FSPO split the difference and she got equilvent of 10 at a tracker of 1.5% in the write down and interest refund and then remaining 10 variable. So as he could not decide what the rate was he split it down the middle?

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Exactly this. Whatever the situation with Karen's mortgage I would imagine that this is the case with most people being maybe halfway through their mortgage. A draw rather than a win?
As I said elsewhere he's basing the compensation on the fact that we should have been on a competitive tracker from exiting the fixed rate to now but has stopped short of putting us on that same tracker going forward.