Tracker Mortgage Decision Reference 2021-0367

Case OutcomeRejected
Subject MatterTracker Mortgage
Date13 October 2021
Conducts Complained OfFailure to offer a tracker rate at point of sale,Failure to offer a tracker rate throughout the life of the mortgage
Finantial SectorBanking
Decision Ref:
Product / Service:
Tracker Mortgage
Conduct(s) complained of:
Failure to offer a tracker rate at point of sale
Failure to offer a tracker rate throughout the life of
the mortgage
This complaint relates to a mortgage loan account held by the Complainants with the
Provider. The mortgage loan was secured on the Complainants’ residential investment
The loan amount was €189,000 and the term of the loan was for 25 years. The particulars
of the Amended Letter of Offer dated 30 March 2005 provided for a 12-month fixed
interest rate of 3.09% with the Provider’s prevailing variable interest rate to apply
thereafter. The mortgage loan account was drawn down on 12 July 2005.
The Complainants’ Case
The Complainants explain that they applied for a mortgage loan account with the Provider,
through a third-party broker, and received a loan offer letter from the Provider in March
2005 for a loan in the amount of €189,000. The Complainants submit that the interest rate
was fixed for an initial 12- month period at 3.09% with a variable rate of interest to apply
- 2 -
The Complainants state that on the expiry of the 12-month fixed interest rate period in
July 2006, the mortgage loan account rolled on to a “variable rate” and remained on this
rate from July 2006 until September 2006. The Complainants submit that they are of the
view that the variable rate that applied in July 2006 was a tracker interest rate of “1.5%
over the ecb rate”.
The Complainants maintain that the interest rate that applied in July 2006 could not have
been a standard variable rate as they had “not even heard of” a standard variable rate at
this time and further there “was no mention of a svr in [their] loan agreement or any
written communication from [the Provider] or in terminology or options both privately or
public i.e. newspapers tv.”
The Complainants contend that they never received a letter dated 02 May 2006 titled
Advance Rate Rollover Letter” from the Provider. The Complainants also submit that they
did not receive the “Fixed Rate Instructions Form” which contained four fixed interest rate
options. Rather, they submit that they received a rate instructions form which also
contained the option for a 3-year “capped” tracker interest rate.
The Complainants further submit that a letter issued to all third-party brokers in 2006
which stated that all “Fixed rates would roll onto Trackers at end of fixed rate period”.
The Complainants submit that they received “unsolicited fixed rate forms from [the
Provider] in Aug, Sept, and Oct in 2006. [The Complainants] signed the Aug document after
some research and ticked the 3 year capped tracker, this document is gone missing from
[their] file”. The Complainants submit that the subsequent rate option letters that they
received from the Provider from August to October 2006, only contained fixed interest
rate options and did not contain the “capped tracker rates offer” which they submit they
had already accepted.
The Complainants state that all interest rate changes to their mortgage loan account in
2006 and 2008 were in response to “the ECB rate change” and the Complainants note that
this was also stated in a letter they received. The Complainants submit that this led them
to understand that the interest rate applicable to their mortgage loan account was “linked
to the ECB rate”.
The Complainants explain that they requested a tracker interest rate to be applied to their
mortgage loan account in August 2008, however they state that the Provider refused to
apply a tracker rate because tracker rates were not available for mortgages secured on
investment properties.

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