Tracker Mortgage Decision Reference 2022-0427

• Case Outcome: Rejected
• Reference: 2022-0427
• Date: 19 December 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:

2022-0427

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 that is the subject of this complaint was secured on the

Complainants’ private dwelling house.

The loan amount was IR£105,000.00 and the term of the loan was 20 years. The Letter of

Approval dated 18 April 2000 provided that the loan type was a “Variable Rate Annuity

Home Loan” and the interest rate applicable was a variable interest rate of 3.75%.

The Complainants’ Case

The Complainants submit that they took out a mortgage loan with the Provider on 18 April

2000. The Complainants submit that in 2008 they were “persuaded not to switch mortgage

to a competitor by offer of [a] lower ECB tracker rate” and that in return the Provider

“placed [them] on a new rate ECB + 0.95% on 12 May 2008.”

The Complainants submit that their “mortgage contract with [the Provider] is ECB + 0.95

per cent” and that “as the ECB rate is -0.5 per cent”, their “official charge is + 0.45 per

cent.”