Banks Set Aside Millions To Compensate Those Taken Off Tracker Mortgages

Ulster Bank has set aside nearly 211 million euro to deal with customers who were wrongly moved off their tracker mortgages.

The majority of it relates to the Central Bank’s examination into lenders who kept people on variable or fixed rate mortgages for longer than they should have.

It was discovered last year that a number of financial institutions had moved thousands of people on trackers onto fixed or variable mortgages – without their knowledge. In other cases they were told it was for a limited period but they were never moved back.

The Central Bank is conducting an investigation into the matter which is expected to conclude in the middle of 2017 with homeowners due to be compensated.

Last year AIB set aside 180 million, for its 3,000 affected homeowners, while today, Bank of Ireland said it had set aside 25 million but couldn’t give a final figure.

Ulster Bank said today over 1,800 accounts have been restored to tracker rates, while Bank of Ireland also said 600 of its customers have been moved back.

Although each lender is at a different stage of the examination process, we’re expected to know more about the timeframe for the investigation when the Central Bank Governor Philip Lane appears before the Oireachtas Finance Committee at the beginning of April.

First broadcast/ published on TodayFM on 24th February 2017


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