Tracker Mortgage Decision Reference 2020-0123

• Jurisdiction: Ireland
• Case Outcome: Rejected
• Reference: 2020-0123
• Year: 2020
• Date: 26 March 2020
• Subject Matter: Tracker Mortgage
• Conducts Complained Of: Failure to offer a tracker rate at point of sale,
• Finantial Sector: Banking

Decision Ref:

2020-0123

Sector:

Banking

Product / Service:

Tracker Mortgage

Conduct(s) complained of:

Failure to offer a tracker rate at point of sale

Outcome:

Rejected

LEGALLY BINDING DECISION

OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

Background

The complaint relates to one of the mortgage loan accounts held by the Complainants with

the Provider. The mortgage loan (account ending 7887) that is the subject of this complaint

was secured on the Complainants’ private dwelling house.

The loan amount was €76,000 and the term of the loan was 20 years. The Loan Offer Letter

accepted by the Complainants on 1 June 2006 detailed that the loan type was an “Equity

Release Variable Rate Secured Personal Loan”.

The Complainants’ Case

The Complainants’ principal mortgage loan (account ending 6951) with the Provider was

drawn down in June 2005 on a one-year fixed interest rate. The Complainants submit that

they opted to apply a tracker interest rate of ECB + 1.10% to this mortgage loan in July 2006.

The Complainants submit that in February 2006 they sought additional finance by way of an

equity release mortgage loan. They submit that the Provider failed to offer them a tracker

interest rate when they applied for the equity release loan. They state that they were only

offered a variable interest rate for this mortgage loan, and had they been offered a tracker

interest rate they “would have already cleared off the balance owed”.