Tracker Mortgage Decision Reference 2022-0105

Case OutcomeRejected
Subject MatterTracker Mortgage
Reference2022-0105
Date23 March 2022
Finantial SectorBanking
Conducts Complained OfFailure to offer a tracker rate throughout the life of the mortgage
Decision Ref:
2022-0105
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
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 is secured on the
Complainants’ principal private residence.
The loan amount is €70,000 and the term of the loan is 25 years. The Letter of Offer which
is dated 19 July 2004 outlined that the interest rate applicable to the loan was a fixed
interest rate of 2.75% for the first 12 months of the loan.
The Complainants’ Case
The Complainants submit that they hold four mortgage loan accounts with the Provider.
Mortgage loan account ending 0/002 is the subject of this complaint. The Complainants
also hold mortgage loan accounts ending 0/001, 0/003 and 0/004 with the Provider.
The Complainants submit that they drew down their mortgage loan account ending 0/002
in July 2004 on a 1-year fixed interest rate of 2.75%. The Complainants outline that on the
expiry of the fixed rate period in or around July 2005, mortgage loan account ending 0/002
rolled on to the Provider’s standard variable interest rate. The Complainants contend that
the Provider did not offer them a tracker interest rate on the expiry of the fixed interest
rate period for mortgage loan account ending 0/002.
- 2 -
/Cont’d…
The Complainants outline that they drew down mortgage loan account ending 0/001 in
June 2004 on a 1-year fixed interest rate, and on the expiry of the fixed rate period in or
around June 2005, this account rolled to a tracker interest rate.
The Complainants assert that the Provider has not supplied them with a satisfactory
explanation as to why they were not “supplied or offered” a tracker interest rate for
mortgage loan account ending 0/002 but they were offered a tracker interest rate for
mortgage loan account ending 0/001.
The Complainants submit that the Provider has been unable to provide them with “any
documentationin respect of mortgage loan account ending 0/002 or account ending
0/001 including the letters of offer or the roll over letters which issued on the expiry of the
1-year fixed interest rate periods in or around June and July 2005.
The Complainants assert that it is their understanding that “under industry-wide standards
that all letters of offer which are issued with fixed rates, the standard rate is applied on
expiry of fixed-term, and at this time the full suite of prevailing rates are offered to the
customer”. The Complainants submit that they “never received” the fixed rate expiry letter
that the Provider submits issued one month prior to the expiry of the 12-month fixed
interest rate period in 2005.
The Complainants also assert that “[t]he sample letter alleged to have been issued in 2005
is in complete contrast” to a letter received by the Complainants in 2016 on the expiry of a
fixed interest rate period.
The Complainants contend that the “statements, which the bank has provided on both
accounts”, for mortgage loan account ending 0/001 and mortgage loan account ending
0/002, both quote the change of rate on the expiry of the fixed rate period as “fixed to
Variable”. The Complainants assert that there is no reference to the tracker on account
[account ending 0/001] which the bank applied” a tracker interest rate to, therefore, it was
unclear as to which type of rate applied to each account.
The Complainants further submit that it “appears that the bank is missing a large body of
documentation and several errors were made on accounts”.
The Complainants are seeking the following:

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