Tracker Mortgage Decision Reference 2022-0137

• Case Outcome: Rejected
• Reference: 2022-0137
• Date: 21 April 2022
• Year: 2022
• Subject Matter: Tracker Mortgage
• Finantial Sector: Banking
• Conducts Complained Of: Failure to offer a tracker rate at point of sale,Failure to offer a tracker rate throughout the life of the mortgage

Decision Ref:

2022-0137

Sector:

Banking

Product / Service:

Tracker Mortgage

Conduct(s) complained of:

Failure to offer a tracker rate at point of sale

Failure to offer a tracker rate throughout the life of

the mortgage

Outcome:

Rejected

LEGALLY BINDING DECISION

OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

The complaint relates to one of the mortgage loan accounts held by the Complainants with

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

Complainants’ private dwelling house.

The Letter of Approval dated 15 June 2006 in respect of mortgage loan account ending

8098 detailed that the loan type was an “Equity Release Variable Rate Secured personal

Loan” to be drawn down on a standard variable interest rate of 3.85%. The loan amount

was for €115,000 and the term of the loan was 15 years.

The Complainants’ Case

The Complainants submit that they applied for mortgage loan account ending 8098 with

the Provider in 2006 and, during the application process, a representative of the Provider

“offered the tracker mortgage initially via telephone”. The Complainants outline that they

subsequently completed paperwork which “confirm[ed] the tracker” rate of interest on

their mortgage loan account.

At the time of the application, the Complainants detail that they were seeking to re-

mortgage their primary mortgage loan account ending 3648, which was on a tracker

interest rate. The Complainants assert that they were instructed by the Provider to

drawdown the new mortgage loan account ending 8098 on the Provider’s standard

variable rate in order for a tracker interest rate to applied at a later date.