Tracker Mortgage Decision Reference 2022-0111

• Case Outcome: Rejected
• Subject Matter: Tracker Mortgage
• Reference: 2022-0111
• Date: 30 March 2022
• Finantial Sector: Banking
• Conducts Complained Of: Failure to offer a tracker rate throughout the life of the mortgage

Decision Ref:

2022-0111

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 was secured on the First

Complainant’s principal private residence.

The loan amount was €291,640 and the term of the loan was 35 years. The particulars of

the mortgage loan offer accepted by the Complainants on 15 August 2006 detailed that

the interest rate was “Fixed For 36 months”.

The Complainants’ Case

The Complainants submit that they were advised by their broker that the mortgage loan

was approved on the basis of a three-year fixed interest rate in the event that “the ECB

rate rose and [the Complainants were] unable to manage the repayments”. The

Complainants state that they were not provided with a Statement of Suitability during the

application process for their mortgage loan.

The Complainants explain that in 2006, when they drew down on the mortgage loan

account, the Provider was offering mortgage loans with initial fixed interest rates which

were “followed by a tracker”. The Complainants submit that their loan initiated on a fixed

rate but they were only offered the Provider’s standard variable rate upon expiry of the

fixed interest rate period in 2009.