AIB tracker mortgage customers could be in for €65,000 payout

The bank has finally admitted to a huge error with their trackers.

Plenty of good news for AIB this week, as the stabilised bank looks ahead to a future flotation, and today many who have mortgages with the bank will also have reason to celebrate.

After years of denial, AIB has admitted that it wrongfully took trackers off approximately 3,000 people. They were moved to an expensive variable rate that could have hurt their pocket to the tune of an extra €12,500 a year.

It means it will not only restore these good-value trackers but also pay compensation.

Homeowners could be in for an average redress of €65,000 each.

AIB confirmed that it has set aside €105 million for the redress and a further €85 million for related matters. Some 300 members of staff are currently looking at its mortgages to assess which customers are in line for a redress.

It forms a part of AIB's larger efforts to restructure their borrowers' debt. The bank wrote off €604.3 million in Irish residential mortgage loans in 2015, up 35% on the previous year.