Tracker Mortgage Decision Reference 2022-0142

Case OutcomeRejected
Subject MatterTracker Mortgage
Date22 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 Complainant with the
Provider. The mortgage loan that is the subject of this complaint is secured on the
Complainant’s principal private residence.
The loan amount was €300,000.00 and the term of the loan was 35 years. The Mortgage
Loan Offer Letter dated 14 July 2006 detailed that mortgage loan would “issue in stages
and commence on a discounted interest rate of ECB +0.85% for the first 12 months with an
interest rate of ECB +1.25% applying thereafter.
The Complainant’s Case
The Complainant submits that he “signed/entered into a ‘Tracker’ Mortgage Agreement in
good faith with [the Provider] in 2006 for €300,000 on certain terms and conditions.” The
Complainant details that the mortgage was “activated with a drawdown of €103,500 in
The Complainant contends that “Due to personal & economical circumstances in Ireland
[he] had to pause construction on [his] house until 2016 and when [he] went to drawdown
the next part of the balance [he] was informed that [he] could not & that [he] would have
to take out a ‘Standard Rate Variable’ 2nd mortgage with very different terms and
- 2 -
The Complainant states that the Provider “refused to allow [him] to drawdown [his] tracker
mortgage and insisted [he] re-apply and take out a standard variable rate mortgage for the
balance of [his] mortgage to finish the build of [his] house.
The Complainant maintains that the Provider has “offered the explanation that [he] did not
draw down the full mortgage within 6 months” but the Complainant insists that this would
be “impossible for a self build house.” The Complainant asserts that “At no stage was [he]
ever contacted or informed by [the Provider] that [he] was not complying with the terms
and conditions or that [he] was running out of time to drawdown the balance of the
The Complainant details that “Nowhere in the Terms & Conditions was it stated that 100%
of the mortgage must be drawn down within any timeframe.” The Complainant submits
that if the Provider had notified him that he was “in danger of losing [his] Tracker
Mortgage, [he] would have immediately have progressed [his] house build and drawn
down the balance of the Tracker Mortgage”. The Complainant further submits that “Surely,
there is an onus/responsibility on the provider to contact/warn a loyal Customer of over 20
years on such a serious issue?”
The Complainant asserts that it is quite obvious that the only reason to insist on a new
variable rate mortgage is to renege on the original tracker mortgage agreement.” The
Complainant further asserts that “This has forced [him] to have two separate mortgages
on the same property one a ‘Tracker’ and another at ‘Variable Rate’.”
The Complainant states that his “contention is that the ‘Provider’ in 2016 just saw this as
an opportunity to unilaterally cancel [his] tracker mortgage and force [him] to take out a
2nd higher interest rate mortgage.”
The Complainant submitted that in an effort “to try and alleviate the financial pressure” he
has been forced to “secure a private loan (€65,000 interest free) to pay back a lump sum
off the mortgage and renegotiate a new loan with [the Provider] at 2.9% for the balance.”
The Complainant asserts that for the Provider “[t]o try and suggest that the 2nd. Mortgage
which [the Complainant] was ‘forced’ to take out because the Provider reneged on the
original Mortgage to complete the building on [the Complainant’s] house is not relevant to
the complaint is ludicrous.”
The Complainant details that “The 2nd. Mortgage only exists because of [the Provider’s]
behaviour in refusing to allow [the Complainant] to draw down the balance of the 1st.
Mortgage, that is the kernel of the complaint.”

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