CAN WE GET COMPO FOR BAD MORTGAGE ADVICE?

Q The Central Bank is investigating tracker mortgages. Does this include customers who were told by advisers to take the more expensive variable rate when lower tracker rates were available (as we were when we got our mortgage)?

A Irish banks have had to pay out €120million in compensation to customers since 2015 on foot of an ongoing examination by the Central Bank of tracker mortgage accounts. Some people were wrongly deprived of trackers they had taken out and lost out badly as a result. Your issue, however, would seem to be with the adviser, who could perhaps have served you better, and not the banks now being investigated by the Central Bank over how they treated tracker borrowers. A Central Bank spokeswoman said: ‘The purpose of the examination is to identify any cases where customers’ contractual rights under the terms of their mortgage agreements were not fully honoured, and/ or lenders did not fully comply with the various requirements and standards regarding disclosure and transparency for the customer. ‘As such, the scenario as outlined in (your) question is not within the scope of the examination.’ You could bring a case to the Financial Services Ombudsman, but it would be a hard to prove specific wrongdoing, as the majority of people are on variable rates.

Q I had a tracker mortgage with Irish Nationwide which was sold on to a vulture fund. Will I be included in the Central Bank redress scheme for tracker mortgages?

A No, but you should get refunds eventually as an unsecured creditor of the failed building society. The issue is complicated by the ongoing liquidation of IBRC, the entity that Irish Nationwide morphed into along with Anglo after the crash. In a recent reply to a Dáil question from Pearse Doherty TD, Finance Minister Michael Noonan said: ‘Customers who are eligible for redress as part of the (Central Bank) tracker mortgage review will be treated as unsecured creditors of IBRC in respect of any such amounts which are found to be due to them for the period beginning February 2007 up until the date of liquidation. Amounts due to customers... will be treated as a cost of liquidation and will be paid in full.’

Q My car is over 10 years old and I can’t get a quote for less than €1,100 from regular insurers. Where can I go?

A Although you are a man, try Its4women.ie, who are not so tough on older vehicles. Some other tips include: • Add a named driver to your policy. • Ask: do you really need fullycomprehensive cover? There’s not much point if your car isn’t worth much. However, if the fully comprehensive quote isn’t much higher than third-party fire and theft, then it’s probably worth having. • If you do go fully comprehensive, make sure the market value of the car you give is strictly accurate – there’s no point in paying for higher cover because you won’t get it in the event of an accident.

Q My daughter has had a serious health issue and we wish to give her a house. Can we avail of an exemption to gift tax?

A The threshold for parent-daughter gifts is €310,000. You can gift her an asset worth that much without paying any tax, but this would count towards her lifetime tax-free allowance for gift and inheritance tax. There is also an exemption for gifts to ‘a dependant relative’ who must be either over 65 or ‘permanently and totally incapacitated because of physical or mental infirmity from maintaining himself/herself’. If in doubt, contact your local Revenue office.