Tracker Mortgage Decision Reference 2026-0050

• Case Outcome: Rejected
• Year: 2026
• Reference: 2026-0050
• Date: 27 March 2026
• Subject Matter: Tracker Mortgage
• Finantial Sector: Banking
• Conducts Complained Of: Failure to offer appropriate compensation or redress CBI Examination,Failure to apply the correct tracker rate as part of the Examination

Decision Ref:

2026-0050

Sector:

Banking

Product / Service:

Tracker Mortgage

Conduct(s) complained of:

Failure to offer appropriate compensation or

redress CBI Examination

Failure to apply the correct tracker rate as part of

the Examination

Outcome:

Rejected

LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

Background

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

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

Complainants’ private dwelling house.

The loan amount was €180,000.00 and the term of the loan was for 30 years. The Offer of

Additional Advance dated 23 July 2003 provided for a tracker interest rate of ECB + 0.95%

to be applied to the mortgage loan account.

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

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

“Examination”). The Provider identified that a failure had occurred on the mortgage loan

sub-account and as such the mortgage loan sub-account was deemed to be impacted

under that Examination.

The Provider wrote to the Complainants on 16 March 2018 to inform them that the

mortgage loan sub-account had been deemed impacted by the Examination and details of

the redress and compensation payable to them. The Provider detailed: “Why your

mortgage sub-account has been identified as impacted” as follows:

- 2 -

/Cont’d…

“Through the review conducted under the Tracker Mortgage Examination, the use

of ambiguous and confusing terminology has been identified as causing a lack of

transparency in some of the documentation you received.

When you drew down on a tracker rate you received a letter of offer that used the

term “Home Loan” to describe your mortgage. When you moved to a fixed rate the

document you received, when read in conjunction with your letter of offer, was

unclear as to the default interest rate that was to apply on the expiry of your fixed

rate term.

These documents referred to the default interest rate as follows: “…. The [Provider]

Home Loan Rate shall apply in accordance with General Condition 2 of the Offer of

Advance originally accepted by you…” It was not clear that the [Provider] Home

Loan Rate was [the Provider’s] Standard Variable Rate (SVR) and was not your

original “Home Loan” rate, which was a tracker rate.

As the terminology was unclear regarding what rate would apply to your mortgage

when your fixed rate came to an end, we have identified that your mortgage sub-

account was impacted from 01/12/2008 up to 14/08/2015. Impact occurred when

your fixed rate came to an end and you were not offered your tracker rate. During

the above impacted period you did not receive the benefit of a tracker interest rate

and you will now receive redress and compensation.”

The Provider offered the Complainants the sum of €31,027.77, as redress and

compensation for the error that occurred, made up of the following:

1. Total redress amount of €27,167.65

a. Redress amount of €26,046.83

b. Time Value of Money (TVM) of €1,120.82

2. Compensation of €3,260.12

3. Independent Professional Advice payment of €600.00

In March 2019, the Complainants appealed to the Provider’s Appeal Panel.

On 10 May 2019, the Provider wrote to the Complainants for the purposes of confirming

that they were eligible to apply for a new mortgage with the Provider on a tracker rate of

interest of ECB + 2.00%. The letter dated 10 May 2019 details as follows:

“…