Tracker Mortgage Decision Reference 2022-0143

• Case Outcome: Rejected
• Subject Matter: Tracker Mortgage
• Reference: 2022-0143
• Date: 22 April 2022
• Finantial Sector: Banking
• Conducts Complained Of: Failure to offer a tracker rate throughout the life of the mortgage

Decision Ref:

2022-0143

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 Complainant with the

Provider. The mortgage loan that is the subject of this complaint was secured on the

Complainant’s principal private residence.

The loan amount was €165,000.00 and the term of the loan was 30 years. The particulars

of the mortgage loan offer accepted by the Complainant on 25 June 2006 detailed that the

interest rate was “Fixed For 24 months”.

The mortgage loan account was redeemed on 24 August 2015.

The Complainant’s Case

The Complainant submits that he drew down the first stage payment of his mortgage loan

account with the Provider in July 2006. He states that the mortgage loan amount was

€165,000.00 repayable over a 30-year term on a 2-year fixed interest rate of 4.39%, with

the Provider’s prevailing variable interest rate to apply thereafter.

The Complainant submits that when his fixed rate period expired in July 2008, the

mortgage loan account switched to a standard variable rate of interest, and he was not

offered the option of switching to a tracker interest rate. The Complainant states that he

should have been offered a tracker interest rate in July 2008 on the basis that a tracker

rate is “classified as a variable rate”.