Tracker Mortgage Decision Reference 2021-0372

Case OutcomeRejected
Date18 October 2021
Subject MatterTracker Mortgage
Conducts Complained OfFailure to offer a tracker rate at point of sale
Finantial SectorBanking
Decision Ref:
Product / Service:
Tracker Mortgage
Conduct(s) complained of:
Failure to offer a tracker rate at point of sale
This complaint relates to a mortgage loan account held by the Complainants with the
Provider. The mortgage loan is secured on the Complainants’ principal private residence.
The loan amount was €250,000 and the term of the loan was for 25 years. The particulars
of the Mortgage Loan Offer Letter dated 28 May 2008 provided for a 12-month discounted
variable interest rate of 4.94%, with the Provider’s “then prevailing Home Loan variable
rate” to apply thereafter. The mortgage loan account was drawn down in August 2008.
The Complainants’ Case
The Complainants detail that when they applied for a mortgage loan with the Provider on
28 May 2008, they were never advised that they had the option of choosing a tracker rate
of interest. They contend that a variable rate of interest “was our only offer”.
The Complainants maintain that at no time” were they offered a tracker interest rate or
indeed “advised on what a Tracker Mortgage was” when they applied for their mortgage
loan in 2008. The Complainants contend that had they been made aware of a tracker
interest rate option, they would have availed of such a rate at that time as they were
getting married, trying to build their home, and both of them had just commenced full-
time employment therefore “every penny saved would have been advantageous to them
at the time”.
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The Complainants submit that they sought the “best available option” from the Provider at
that time however they were not offered a tracker mortgage which they now understand
was the “best available option…which would have given a lesser interest rate for the
duration of [their] mortgage”. The Complainants assert that they were “not in the business
of selling mortgages” therefore “[t]hey placed their faith and their trust in [Provider] and
their personnel in advising on the best available options to them”.
The Complainants further detail that they were never provided with a mortgage form of
authorisation from the Provider to “convert” their variable interest rate mortgage to a
tracker interest rate, nor were they informed that this option was available to them.
The Complainants disagree with the Provider’s assertion that the Complainants “exercised
their discretion in selecting an interest rate and accepting the terms and conditions
applicable to the relevant interest rate when they signed and accepted the offer letter”.
The Complainants maintain that they “did not exercise discretion and could not do so, if
they were not given all the options”.
The Complainants submit that in 2017 there was a lot of talk in the media surrounding
issues in relation to Tracker Mortgages” and therefore they received a copy of their loan
pack “in order to make sure that they were on the tracker rate and then realised they were
The Complainants stated that they want to know if they are entitled to a tracker interest
rate, and if so, whether any monies are owed to them.
The Provider’s Case
The Provider submits that the Complainants signed a Mortgage Loan Offer Letter dated 28
May 2008 on 12 June 2008 and drew down mortgage loan account ending 3867 in August
2008 for a term of 25 years. The Provider explains that a discounted standard variable
interest rate of 4.94% applied to the Complainants’ mortgage loan account for a period of
12 months, “after which the interest rate would move to a standard variable interest rate”.
The Provider asserts that there was no contractual entitlement to a tracker rate of interest
in the Mortgage Loan Offer Letter that issued to the Complainants.
The Provider states that tracker interest rates were available to new and existing
customers at the time of the Complainants’ mortgage loan application in May 2008. The
Provider submits that the Complainants “could have requested that the Offer Letter was
reissued with a tracker rate of interest” at any time prior to drawdown, however they did
not do so. In addition, the Provider states that post drawdown “the Complainants could
have opted to switch the mortgage loan account to a tracker rate of interest”.

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