Tracker Mortgage Decision Reference 2020-0384

• Case Outcome: Rejected
• Subject Matter: Tracker Mortgage
• Reference: 2020-0384
• Date: 30 October 2020
• Conducts Complained Of: Failure to offer a tracker rate at point of sale,Failure to offer a tracker rate throughout the life of the mortgage
• Finantial Sector: Banking

Decision Ref:

2020-0384

Sector:

Banking

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

Outcome:

Rejected

LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

Background

The complaint relates to a mortgage loan account held by the Complainants with the

Provider. The mortgage loan account is secured on the Complainants’ private dwelling

house.

The loan amount was €315,000 and the term was 35 years. The Offer of Advance which

was signed on 25 April 2006 outlined that the interest rate applicable to the loan was “[the

Provider’s] Variable Home Loan Rate less 0.55%” from the date of drawdown until 31

January 2007, with the Provider’s Variable Home Loan Rate applying thereafter.

The Complainants’ Case

The Complainants submit that “When we first took out our mortgage in 2006 we were told

by our mortgage advisor in [the Provider branch] that whatever option we chose, be it

Variable, Fixed or Tracker, we could always change to one or the other if and we wanted.”

The Complainants submit that “it is not relevant to claim that Tracker was not mentioned

on Offer of Advance”. They assert that the language used by the Provider in the mortgage

loan documentation is “far from transparent.” They detail that “the term ‘standard

variable rate’ does not appear in the ‘Offer of Advance’ but ‘[Provider] Variable Home Loan