Tracker Mortgage Decision Reference 2022-0133

Case OutcomeRejected
Subject MatterTracker Mortgage
Date19 April 2022
Finantial SectorBanking
Conducts Complained OfFailure to offer a tracker rate throughout the life of the mortgage
Decision Ref:
Product / Service:
Tracker Mortgage
Conduct(s) complained of:
Failure to offer a tracker rate throughout the life of
the mortgage
This complaint relates to a mortgage loan account held by the Complainants with the
The loan amount was €242,000 and the term of the loan was 25 years. The Mortgage Loan
Offer Letter dated 12 December 2005 provides that a tracker variable interest rate of ECB
+ 1.10% would apply for the term of the loan
The mortgage loan account was drawn down in two stages on 19 December 2005 and 25
January 2006.
The Complainants’ Case
The Complainants outline that in 2011 they advised the Provider that they were leaving
the country for the short term in order to get back on [their] feet financially. The
Complainants explain that they informed the Provider that the secured property the
subject of mortgage loan account ending 3586 was always their family home and that they
intended to return to it. The Complainants submit that the Provider “took the position that
as [they] were not residing in the property, it was a Buy to Let Property”.
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The Complainants submit that they were told on many occasions that if they did not sign an
agreement dated 26 July 2013, that the Provider would start a legal process to have their
family home sold. The Complainants assert that they “were bullied into signing up to this
The Complainants submit that the “[Provider’s] solution to the unsustainability issue was to
restructure the loan onto a higher interest rate loan”. The Complainants maintain that this
“is illogical and defies common sense. The Complainants refer to a number of telephone
calls with the Provider in that regard in 2011, 2012 and 2013 and submit that nowhere “does
it mention how heated those conversations were”. The Complainants further submit that the
Provider does not mention that they were told that if they did not sign the “agreement” that
they would “ultimately have the house sold from under [them]” nor does it mention any of
their objections raised in respect of the “agreement”. The Complainants detail the impact
this has had on their mental health and that they are at their “wits end”.
The Complainants are seeking the following:
a) The tracker rate to be restored to their mortgage loan account; and
b) Redress and compensation for the stress and worry caused to the Complainants.
The Provider’s Case
The Provider outlines that the Complainants signed and accepted a Mortgage Loan Offer
Letter dated 27 October 2005 in relation to mortgage loan account ending 3586 on 07
November 2005.
The Provider submits that mortgage loan account ending 3586 first entered arrears on 18
September 2008, which were subsequently cleared on 02 October 2008. The Provider
details that the direct debits due on 01 October 2008 and 01 November 2008 were also
unpaid and those arrears were repaid on 20 November 2008. The Provider explains that
the mortgage loan account fell into arrears again on 20 May 2009 and the arrears
continued until 16 September 2013, at which stage the arrears on the mortgage loan
account were capitalised in accordance with the terms of the Agreement to Amend the
Letter of Offer.
The Provider maintains that it engaged substantively with the Complainants from May
2009 onwards with a view to dealing with the Complainants’ arrears.

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