Tracker Mortgage Decision Reference 2023-0009

Case OutcomeRejected
Date23 January 2023
Subject MatterTracker Mortgage
Finantial SectorBanking
Conducts Complained OfFailure to offer a tracker rate at point of sale,Failure to offer a tracker rate throughout the life of the mortgage
Decision Ref:
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
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’ principal private residence.
The loan amount was for €182,000.00 and the term of the loan was 30 years. The
Mortgage Loan Offer dated 25 September 2007 provided for a staff preferential variable
interest rate of 4 % which would apply for the term of the loan.
The Complainants’ Case
The Complainants state that in November 2007, they approached the Provider for the
purposes of transferring their mortgage from another financial services provider to the
Provider in order to avail of the Provider’s “Fixed Rate mortgage”. The Second
Complainant was a staff member of the Provider at this time and Complainants detail that
they were advised by the Provider to “avail of a Preferential Staff Rate of 4% (0.89% lower
than the tracker).” The Complainants maintain that their advisor recommended that they
could “do this up to a certain value”. The Complainants outline that this resulted in 50% of
their mortgage, i.e., mortgage loan account ending 4582, “availing of a 3yr fixed rate that
then reverted to a tracker rate when the fixed term ended, and the other 50% [account
ending 3467] on a staff preferential variable.
- 2 -
The Complainants submit that there has been a “lack of transparency” on the part of the
Provider regarding mortgage rates and options. The Complainants maintain that the
Provider recommended that they avail of a staff preferential rate which was “withdrawn
after 11 months resulting in a transfer to a variable rate”. The Complainants assert that
there was no option to avail of a tracker interest rate when the preferential rate was
removed which would “align with other 50% of mortgage”. The Complainants submit that
if the Second Complainant had not been an employee of the Provider, “100% of [their]
mortgage would have been on a tracker mortgage for the term of the loan.”
The Complainants state that they are “delighted” that the Provider agreed to move their
mortgage loan account ending 3467 to a tracker interest rate in 2020. The Complainants
note that they feel that the Provider should offer “a level of redress to mitigate the
negative financial impact of the poor financial support, advice and service [they] received in
relation to [their] mortgage.
The Complainants are of the view that they have not been dealt with “fairly” by the
Provider regarding the interest rates offered. The Complainants maintain that they have
been “negatively impacted financially”. The Complainants submit that they are satisfied
with the Provider’s offer of transferring part of their mortgage to a tracker interest rate
but are concerned that this does “not address the fact that [their] monthly repayments
have been substantially higher over the years”. The Complainants are of the view that the
Provider should refund them the excess “in monthly repayments that [they] have been
repaying over the last 10 years.” The Complainants “strongly believe” that they “should
have been offered the tracker rate years ago when from a very early stage the “Staff
Preferential” rate was no longer competitive.
The Complainants are seeking the following:
(a) Mortgage loan account ending 3467 to be transferred to a tracker rate of interest
(b) A refund of overpaid interest from April 2009, when the mortgage loan account
was switched to a standard variable rate instead of a tracker rate of interest.
The Provider’s Case
The Provider states that the Mortgage Loan Offer dated 25 September 2007 for mortgage
loan account ending 3467 provided for a loan amount in the sum of €182,000.00 repayable
over a period of 30 years. The Provider notes that the interest rate was a “staff preferential
rate” of 4.00% as detailed in Special Condition (v) of the Mortgage Loan Offer. The
Provider submits that Special Condition (v) also makes it clear that if the Second

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