Tracker Mortgage Decision Reference 2020-0417

• Case Outcome: Rejected
• Subject Matter: Tracker Mortgage
• Reference: 2020-0417
• Date: 18 November 2020
• Conducts Complained Of: Failure to offer a tracker rate throughout the life of the mortgage
• Finantial Sector: Banking

Decision Ref:

2020-0417

Sector:

Banking

Product / Service:

Tracker Mortgage

Conduct(s) complained of:

Failure to offer a tracker rate throughout the life of

the mortgage

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’ Residential Investment Property (RIP).

The loan amount was €155,000 and the term was 15 years. The Letter of Approval which

was signed on 28 January 2005 detailed that the Loan Type was a “Residential Investment

Loan 1 Year Fixed New Business Rate”.

The Complainants’ Case

The Complainants submit that prior to the expiry of the initial fixed interest rate period in

February 2006, they were issued a rate options form offering them a variable interest rate

and 3 fixed interest rate options. They detail that a tracker interest rate was not made

available to them. On 6 February 2006, the Complainants completed the options form and

opted to apply a further fixed interest rate of 3.75% for a period of one year.

In December 2006, the Complainants were issued a further rate options form which

offered them 3 fixed rate options but no tracker interest rate option. They elected to apply

a five year fixed rate of 4.85% to the mortgage account.