Tracker Mortgage Decision Reference 2022-0428

• Case Outcome: Rejected
• Reference: 2022-0428
• Date: 19 December 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 process instructions, Failure to process instructions in a timely manner, Increase in interest rate

Decision Ref:

2022-0428

Sector:

Banking

Product / Service:

Tracker Mortgage

Conduct(s) complained of:

Failure to offer a tracker rate at point of sale

Failure to process instructions in a timely manner

Increase in interest rate

Failure to process instructions

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 is secured on the

Complainants’ private dwelling house.

The loan amount was €155,000.00 and the term of the loan was 25 years. The Mortgage

Loan Offer Letter dated 11 October 2004 provided that the applicable interest rate was a

discounted variable interest rate of 2.69% for 12 months with a standard variable interest

rate of 3.60% to apply thereafter.

The Complainants’ Case

The Complainants submit that they obtained a mortgage from the Provider in 2004. The

Complainants submit that they were not adequately informed by the Provider at the time

about tracker mortgages “and what they entail and therefore could not make an informed

choice”.

The Complainants assert that tracker mortgages were not explained to them in a

comprehensive or sufficient manner at any stage. The Complainants maintain that “it is the