Tracker Mortgage Decision Reference 2025-0184

• Case Outcome: Rejected
• Year: 2025
• Reference: 2025-0184
• Date: 15 December 2025
• Subject Matter: Tracker Mortgage
• Finantial Sector: Banking
• Conducts Complained Of: Failure to offer appropriate compensation or redress CBI Examination

Decision Ref:

2025-0184

Sector:

Banking

Product / Service:

Tracker Mortgage

Conduct(s) complained of:

Failure to offer appropriate compensation or

redress CBI Examination

Outcome:

Rejected

LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

Background

This complaint relates to a mortgage loan account held by the Complainants with the

Provider. The mortgage loan that is the subject of this complaint was secured on the

Complainants’ buy to let (“BTL”) property.

The mortgage loan amount is €308,000.00 and the term of the loan is 21 years. The Letter

of Offer dated 21 May 2007 was signed by the Complainants on 15 June 2007.

The Complainants’ mortgage loan account was considered by the Provider as part of the

Central Bank of Ireland directed Tracker Mortgage Examination (the “Examination”). The

Provider identified that a failure had occurred on the mortgage loan account, and the

mortgage loan account was deemed to be impacted under the Examination.

By letter to the Complainants dated 23 March 2018, the Provider detailed that they found

that the Complainants’ mortgage loan account “was affected by a failure on our part” as

follows:

“…

The terms and conditions of your mortgage account state that at the end of a fixed

rate period you had the option to choose the then prevailing fixed, variable or

- 2 -

/Cont’d…

tracker interest rates. The interest rate on your account was fixed for a period and

when this expired (between October 2008 and December 2013), we had withdrawn

tracker rates. Because of this, you did not have the option of choosing the then

prevailing tracker rate at the time.”

With respect to the effect of the failure on the mortgage loan account, the Provider

outlined as follows:

“…you did not suffer any financial detriment as a result of the prevailing tracker not

being available during that period. However, we recognise that this option should

have been available to you and we apologise for our failure.

…”

The Provider made an offer of €1,615.00 to the Complainants by letter dated 23 March

2018, which comprised the following:

1. Compensation of €1,000.00 for the failure on the mortgage loan account; and

2. Independent professional advice payment of €615.00.

On 15 March 2019 the Complainants appealed the redress and compensation offering to

the Provider’s Independent Appeals Panel. The basis of the Complainants’ appeal was the

inadequacy of the redress and compensation offered.

Following a Preliminary Decision issuing from this Office in respect of another complaint

against the Provider which dealt with some similar issues to those arising in relation to this

complaint, the Provider wrote to the Complainants on 21 August 2020 detailing as follows:

“…

We wrote to you in March 2018 with a €1,615 payment for a failure on your

mortgage account [ending 5018]. The Financial Services & Pensions Ombudsman

(FSPO) recently upheld an individual FSPO complaint on an account on the same

terms and conditions and circumstances as yours. He awarded what he deemed to

be a fair and proportionate remedy for the wrong that he considered had been

suffered by that customer.

…

We have decided to apply the award in this FSPO decision to your account and to

other accounts having the same terms and conditions and circumstances. This will

provide a fair and proportionate remedy in your circumstances.

…”

The Provider’s letter further detailed as follows:

- 3 -

/Cont’d…

“…

What does this mean for you?

In line with the FSPO decision we have taken the following steps:

• We have calculated a 12% reduction of €31,133.86 on your mortgage balance.

• We calculated the balance reduction based on the capital balance as it stood

when your fixed rate period ended and you were not offered a tracker rate.

When your fixed rate period ended on 06/03/2012, the capital balance on your

mortgage account was €259,448.81.

• If your mortgage account was open we would have reduced the balance by

€31,133.86. however, as your account is closed, this amount is included in your

payment.

• We have also refunded you interest of €8,580.22. This refund is based on the

interest charged on the 12% balance reduction from the date your fixed rate

period ended.

[…]

• Included with this letter is a cheque or a Payment Instruction Form. Where there

is a Payment Instruction Form enclosed, you need to complete and return it so

that we can send the payment of €39,714.08 by cheque, which is made up on

your mortgage balance reduction and interest refund.

…”

On 26 February 2021 the Independent Appeals Panel decided that the Complainants’

appeal was unsuccessful for the following reasons:

“…

The Panel further noted that the Bank wrote to the Customers on 21 August 2020

regarding a recently upheld decision by the Financial Services and Pensions

Ombudsman (“FSPO”) to advise the Customers that the Bank had decided to apply

the award in this FSPO decision to their account which had the same terms and

conditions and circumstances. The Panel noted that the Bank made the Customers a

further payment of:

• A 12% reduction of €31,133.86 to the Customers’ mortgage balance; and

• An interest refund of €8,580.22.

…

The Panel decided that, in the circumstances, [the Complainants] had been

appropriately compensated by the Bank. Accordingly, the Panel determined that