Tracker Mortgage Decision Reference 2022-0431

• Case Outcome: Rejected
• Reference: 2022-0431
• Date: 22 December 2022
• Year: 2022
• Subject Matter: Tracker Mortgage
• Finantial Sector: Banking
• Conducts Complained Of: Failure to offer a tracker rate at point of sale

Decision Ref:

2022-0431

Sector:

Banking

Product / Service:

Tracker Mortgage

Conduct(s) complained of:

Failure to offer a tracker rate at point of sale

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 that is the subject of this complaint was secured on the

Complainants’ private dwelling house.

The loan amount was €538,000.00 and the term of the loan was 22 years. The Loan Offer

Letter dated 12 March 2008 provided for a fixed interest rate of 4.95% for five years,

followed by a tracker interest rate of ECB + 1.15%.

The Complainants’ Case

The Complainants submit that in early 2008, they consolidated their borrowings into a new

mortgage with the Provider. The Complainants state that at the time, they requested a

tracker mortgage and that it was their intention to have interest only repayments on a

“pension backed mortgage” loan facility. The Complainants submit that this product would

allow them to repay the capital mortgage loan amount from a pension lump sum at

normal retirement age whilst servicing the interest only repayments during the lifetime of

the mortgage loan.