Tracker Mortgage Decision Reference 2022-0298

• Case Outcome: Rejected
• Reference: 2022-0298
• Date: 31 August 2022
• Year: 2022
• Subject Matter: Tracker Mortgage
• Finantial Sector: Banking
• Conducts Complained Of: Failure to offer a tracker rate throughout the life of the mortgage

Decision Ref:

2022-0298

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

Background

This complaint relates to a mortgage loan account held by the Complainants with the

Provider. The mortgage loan account was secured on the Complainants’ residential

investment property.

The Mortgage Loan Offer Letter dated 02 May 2003 in relation to mortgage loan account

ending 9746 provided that a fixed interest rate of 2.950% would apply for the first 12

months of the term of the mortgage loan. The loan amount was €135,000.00 and the term

of the loan was 20 years.

The mortgage loan account was drawn down in full on 31 July 2003 on a fixed interest rate

of 2.490%.

The Complainants’ Case

The Complainants submit that they approached the Provider in January 2013 and sought

to renegotiate their mortgage loan repayments “which at the time was on a tracker rate”.

The Complainants submit that on 26 February 2013, the Provider informed them that it

would “renegotiate payments” on their mortgage loan if they “were prepared to move

- 2 -

/Cont’d…

from [their] tracker rate”. The Complainants state that they were led to believe that they

had no alternative option but to “relinquish [their] tracker mortgage”.

The Complainants submit that they “strongly feel” that their tracker interest rate was

“wrongly removed” from their mortgage loan. The Complainants maintain that they were

“forced” to give up their tracker interest rate in order to have their “mortgage

rescheduled”, which they were granted “before [the Provider] changed the criteria”.

The Complainants are seeking a refund of any overpaid interest in respect of what they

have paid and what they would have paid if their mortgage loan was on a tracker interest

rate.

The Provider’s Case

The Provider submits that the Complainants signed and accepted a Mortgage Loan Offer

Letter dated 02 May 2003 in relation to mortgage loan account ending 9746 on 12 May

2003, which provided for a 1-year fixed interest rate of 2.95% which would thereafter

move to a standard variable interest rate.

The Provider submits that the Complainants accepted and signed a Mortgage Form of

Authorisation on 23 February 2006 and the mortgage loan account moved to interest only

repayments for a period of 3 years.

The Provider submits that the Complainants accepted and signed a Mortgage Form of

Authorisation on 5 June 2008 and the mortgage loan account moved to a tracker interest

rate of ECB + 1.45%. The Provider notes that the tracker interest rate was reduced to ECB +

1.30% on 14 July 2008.

The Provider details that on 2 March 2009 the mortgage loan account reverted to capital

and interest repayments. The Provider submits that the Complainants accepted and signed

a Mortgage Form of Authorisation on 9 May 2009 and the mortgage loan account moved

to interest only repayments for a period of one year. The Provider notes that on 18 May

2010 the mortgage loan account reverted to capital and interest repayments.

The Provider submits that the Complainants accepted and signed a Mortgage Form of

Authorisation on 02 September 2010 in order to apply reduced monthly repayments of

€400.00 to the mortgage loan for a period of 12 months. The Provider details that on 8

September 2011 the mortgage loan account reverted to capital and interest repayments.