Customers of Irish Nationwide who were overcharged as part of the industry-wide tracker mortgage scandal are unlikely to be repaid in full.

The special liquidators appointed to Irish Bank Resolution Corporation have advised the Minister for Finance Michael Noonan that tracker customers eligible for refunds and compensation will join the back of the creditors' queue.  

In a written response to a parliamentary question from Sinn Féin finance spokesperson Pearse Doherty Mr Noonan said those who were overcharged and eligible for redress "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".

The special liquidators to IBRC, which includes Irish Nationwide, were appointed in February 2013. The Minister said amounts due to the affected customers after that date will be treated as a cost of the liquidation and will be "paid in full". "At this stage, it is estimated that less than 100 customers will be impacted and require redress," he said.

Thousands of tracker mortgage customers were impacted by the overcharging scandal which may involve up to 15 financial institutions here. In each case borrowers fixed their mortgage payments for a set term after which they should have been entitled to revert to their tracker rates.

Instead banks moved them to variable rate mortgages with higher interest rates. This resulted in them facing substantially higher monthly repayments than should have been the case. Following an industry wide investigation directed by the Central Bank lenders have, so far, repaid €78m to 2,600 customers. Close to 10,000 affected borrowers have been identified.