EBS has paid refunds totaling nearly €1.5m to 400 buyers soon after it uncovered it had unsuccessful to give them sufficient information around adjustments they were producing to their home loan.

The lender, which is component of AIB, uncovered the challenge next an inner overview of some buyers who experienced been on a decreased variable rate concerning May 2009 and January of last year.

It uncovered that just before picking to correct the amount on their mortgage loan, some of the debtors have been not encouraged that they could not revert to a decreased variable charge when the mounted period of time came to an conclusion.

“In February, we apologised to impacted prospects, corrected the problem and issued them with refunds,” EBS mentioned in a statement.

The common refund specified to every single one particular of the 400 clients impacted was €3,700.

If they wanted to, the borrowers concerned had been also offered the choice of returning to the lowered variable charge, which technically they were being not entitled to do.

A spokesperson for the lender reported some opted to return to the variable price, while others stuck with the fixed choice they were being on.

He extra that the financial institution has due to the fact designed it clearer in its communications that if a buyer comes off a lessened variable price to a fastened just one, they can’t return to the primary price.

The concern was not in any way similar to tracker home loans, the spokesperson reported.

Final month it emerged that tracker house loan borrowers at EBS and another AIB subsidiary Haven were to receive €6,000 each individual on normal as they experienced been billed the mistaken rate of fascination over the previous 14 years.

Three months ago EBS also had to apologise to 16,000 home finance loan clients for mistakenly telling the Irish Credit Bureau that they had skipped repayments.