It has recently been reported that as a consequence of AIB removing their tracker mortgage product from the market in 2008 to boost their income by up to €100 million, they now face a compensation bill payment of €190 million. This sum is to be paid to a total of 9,348 AIB customers who have been impacted by this controversy. €133 million of this compensation payment has already been paid out to those customers affected with more due to be paid out over the coming months.
Those included in this compensation payment are at least 14 customers who as a result of being either wrongly switched off low-cost tracker mortgages or applied incorrect interest rates sadly lost their homes by falling into arrears. Take a pause for a second and let that information digest. This is totally unacceptable and reinforces the importance of CHECKING your mortgage paperwork. Introductory tracker rates can be among the lowest variable interest rates you can get on the market, therefore when a bank pulls this product, you are missing out on a potential cost-saving.
A borrower should always be aware of their rights in relation to mortgage products and be offered the opportunity of switching to alternative mortgage products. If you are unsure of what products you are entitled to then your Bank has an obligation to offer full disclosure on mortgage product alternatives.
What is a Tracker Rate Mortgage?
A Tracker Rate Mortgage is basically a type of variable rate mortgage. What makes them different from other variable rate mortgages is that they follow track movements of another rate.
It can track below the rate it is following, but more commonly it tracks at a percentage above it.
As the rate is variable, you benefit from lower payments when the rate is low, but will suffer from higher payments if the rate being tracked goes up.
What should I do?
It is imperative that tonight, tomorrow, over the weekend, or as soon as you have some time, you check your mortgage paperwork to determine and understand the agreements you have with your Bank. Too often too many people take the ostrich approach to these kinds of matters, which are far too serious to ignore as a potential impact of being denied cost cutting opportunities could result in not being able to afford your mortgage payments meaning you may lose your property. This is very serious.
How can we help?
Since 2010, GDP Equity Experts has helped hundreds of families and BTL property investors deal with property debt related issues. We are fully regulated by the FCA and have an incredible team who are here to help you today with any of the issues that might concern you with regards to this topic and other matters related to your debt position.
The clear trend over the last number of years is that those people who constantly review and have a very clear understanding of their monthly income levels and overall finances are better prepared and have much better outcomes when month to month costs increase for one reason or another.
GDP Equity Experts know what is expected and how to get you to where you want to go. We WANT to hear from you today because we WANT to help you today.
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