Bank of Ireland set aside €25m to compensate 600 customers wrongly moved off tracker mortgage

Bank of Ireland has set aside €25m to compensate 600 customers who were wrongly moved off their tracker mortgage.

Some 600 customers were moved to a less favourable rate by the Bank.

Chief Executive Richie Boucher says they have been moved back to their tracker rate and the company is now negotiating a settlement for homeowners with the Central Bank.

Last year AIB set aside €180m, for its 3,000 affected homeowners.

Mr Boucher says he expects it will cost Bank of Ireland in the region of €25m, however they will not know the final bill until negotiations with the Central Bank have concluded: "There were 600 customers where we should have provided them with a tracker, and that tracker has been restored for the customers still with us.

"We are part of an overall central bank, a programme and part of that programme will be working to redress for customers."