Tracker Mortgage - Can I get it back?

M

Matty Boy

Guest
Hi,
I read this morning in the Irish Independent that Bank of Ireland are being forced to put customers back on Tracker Mortgages (see Fridays 6th May Indo). Basically homeowners had opted to move from trackers to fixed rates, but the bank had failed to observe Central Bank rules about the need to warn the customers of the cost implications of giving up a tracker.
My wife and I unfortunately (& naively) switched from our EBS Tracker Mortgage to a fixed rate back in January 2007. After the fixed rate ended, we were moved to a variable rate. I have looked at documentation at the time and similar to the story in the Irish independant, EBS didn’t notify us of the cost implications.
Do we have a case similar to the BOI customers above? I cannot see why not? Would appreciate any advice.
 
Hi,
I read this morning in the Irish Independent that Bank of Ireland are being forced to put customers back on Tracker Mortgages (see Fridays 6th May Indo). Basically homeowners had opted to move from trackers to fixed rates, but the bank had failed to observe Central Bank rules about the need to warn the customers of the cost implications of giving up a tracker.
My wife and I unfortunately (& naively) switched from our EBS Tracker Mortgage to a fixed rate back in January 2007. After the fixed rate ended, we were moved to a variable rate. I have looked at documentation at the time and similar to the story in the Irish independant, EBS didn’t notify us of the cost implications.
Do we have a case similar to the BOI customers above? I cannot see why not? Would appreciate any advice
Click to expand...

Outline your grievance to the EBS with supporting documents,explain that you are looking for a final response letter in relation to this matter.

If they issue the final response letter denying you this then you have exhausted all avenues with your lender and are now in dispute with them...refer the matter to the Financial Ombudsman

[broken link removed]

I am currently in dispute with ICS,the process with the Ombudsman will have taken the guts of a year by the time I receive his Judgment.

Best of luck though.
 
Knuttell said:
Outline your grievance to the EBS with supporting documents,explain that you are looking for a final response letter in relation to this matter.

If they issue the final response letter denying you this then you have exhausted all avenues with your lender and are now in dispute with them...refer the matter to the Financial Ombudsman

I am currently in dispute with ICS,the process with the Ombudsman will have taken the guts of a year by the time I receive his Judgment.

Best of luck though.
Click to expand...

Hi Knuttel,
Thank you for this great advice. I have a friend in Bank of Ireland who I have also asked for some advice on this also. If she knows anything new, I will pass this info on.

But I will start by sending an official mail to EBS looking for clarification on the matter as advised and then going to the ombudsman. I noticed that to get off a EBS Tracker now you need to have a signed letter delivered in person to the EBS branch manager, outlining that you understand the consequences. It hints that maybe previous processes were possibly too loose (legally).

I suppose it is a case of nothing ventured , nothing gained. Please let me know how your case with the Ombudsman goes. J
 
I too switched, in a hurry, from an EBS tracker (4 years ago) to a 5 year fixed. Nobody told me I would not get my tracker back. I contacted EBS, who pointed out a clause buried in the original loan offer docs, the ones nobody ever reads.

I feel quite badly done by here, and I would be most interested to hear if you get a response from the Ombudsman.

C.
 
Matty Boy said:
Hi Knuttel,
Thank you for this great advice. I have a friend in Bank of Ireland who I have also asked for some advice on this also. If she knows anything new, I will pass this info on.

But I will start by sending an official mail to EBS looking for clarification on the matter as advised and then going to the ombudsman. I noticed that to get off a EBS Tracker now you need to have a signed letter delivered in person to the EBS branch manager, outlining that you understand the consequences. It hints that maybe previous processes were possibly too loose (legally).

I suppose it is a case of nothing ventured , nothing gained. Please let me know how your case with the Ombudsman goes. J
Click to expand...

Its important when asking for this letter that you say you want a final response letter from them on this issue,they will then know exactly where this is heading.

I received news yesterday that the Bank was throwing in the towel and I will be put back onto a tracker.

http://www.askaboutmoney.com/showthread.php?t=128549



Greycon:I contacted EBS, who pointed out a clause buried in the original loan offer docs, the ones nobody ever reads.
Click to expand...
I got 3 pages of nonsense like that when I asked for a final response letter,quoting sub paras sec 2 para 3a ad nauseum...if you feel you have been wronged do not let this matter lie.
 
Matty Boy said:
. I noticed that to get off a EBS Tracker now you need to have a signed letter delivered in person to the EBS branch manager, outlining that you understand the consequences. It hints that maybe previous processes were possibly too loose (legally).
Click to expand...

That's a very interesting development. Would you be able to copy the wording of that document.

In my own case one of my arguments was that if they were going to change the rates that a customer should maybe get legal advice because of the serious financial implications of them changing the terms and conditions. My bank ignored this basically.
 
Knuttell said:
I got 3 pages of nonsense like that when I asked for a final response letter,quoting sub paras sec 2 para 3a ad nauseum...if you feel you have been wronged do not let this matter lie.
Click to expand...

Knuttell, on the other thread I missed the line where your bank has given up. Well done. That's fantastic, another victory for the small man.

On this point above, my bank quoted this nonsense to me as well, saying it was in the terms and conditions dah dah dah and I wrote back and asked them where exactly it was which they wouldn't answer.
 
Congrats Knuttel!!!!!! This is great news. You have given me (& I am sure others) a lot of hope with this news. Well done. You must be delighed.

Knuttell said:
I received news yesterday that the Bank was throwing in the towel and I will be put back onto a tracker.
Click to expand...
 
Hi
The exact wording from when we moved from our introductory rate to the tracker rate was

"You may switch from a tracker to a fixed rate or to the standard variable rate at any time. If you subsequently switch to a fixed rate and on the expiry of the fixed rate period fail to select a new interest rate option (the then prevailing tracker rate, fixed rate or svr), the mortgage loan will automatically covert to the svr.
It will not revert to the original tracker rate. If you switch to the svr, you may choose at a later date to opt for the tracker rate prevailing at that time.”

So it doesn’t provide a definite tracker rate that you’d revert to if you choose to move onto a fixed rate (which we did) , but does specify that you will be entitled to revert to the prevailing tracker rate.

As I said above I brought this issue up with them and they came back with
“I wish to advise that as tracker rate options were removed from the market in October 2008 the prevailing rate options at the moment are fixed of LTV variable rates.” and a five figure breakage fee.

So basically we went onto a five fixed with the provision that we could move back to the prevailing tracker once the period was finished and in the meantime they moved the goalposts.

So is anyone else in this position, if so what did they do, did they get anywhere with the bank and if they did what types of rates did the back come back with for the prevailing tracker rate.

Thanks
Pats22
 
I have no experience of this but here is my opinion.

If the contract says you can go to a tracker after the 5 years, then the fact that the bank no longer offers trackers should be irrelevant. If you have a contract that says you get a tracker they should have to do one specially for you.

That leaves the question of what rate should apply as there is no current prevailing rate. What would a judge consider reasonable, the most recent rate that was offered maybe.

The bank can play hardball as long as they like it costs them nothing to say sorry, trackers are no longer available. You need to consider what you will do in response.

If I thought a bank was charging me an unreasonable rate that had no basis in my loan contract I would stop paying them.
 
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