bank wont honour tracker

hi just finshed 2nd fxed rate period and requested to revert back to original offer of advance ECB +1.05,posted bank copies of signed fixed rate forms and offer of advance.Ulster bank have written back to say after 1st fixed term ended had the option to rervert to ECB +1.05,but when i signed for 2nd fixed term i waived ths right,even though it still states orignal loan offer of advance however wording stated variable.However when my last fixed rate expired the letter they sent me saying i was now on variable,also stated if i signed for another fixed rate,on expiry if i had a tracker that it would cease and i would revert to variable.Which clearly explained i would lose my tracker.They told me if im not happy to go to ombudsman.Do i have a valid case,i feel i do. Any advice welcome

Hi tommy

It's a bit confusing, but it seems that they told you that if you signed for a second fixed rate, then you would lose your tracker? If so, I think you have lost your tracker.

It's really difficult to make out what you are saying happened (and when) as your post is one long blurb but the problem seems to centre around what happened when you took out the 2nd fixed rate.

tommy19 said:

after 1st fixed term ended had the option to rervert to ECB +1.05,but when i signed for 2nd fixed term i waived ths right,even though it still states orignal loan offer of advance however wording stated variable.

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What do you mean by "when i signed for 2nd fixed term i waived ths right,even though it still states orignal loan offer of advance however wording stated variable"? What said you would stay with your original loan offer and what wording stated variable? If you signed anything or were sent any terms which stated that taking a 2nd fixed rate period would mean you would revert to a variable rate after, then I can't see you have a case.

sorry 4 any confusion.signed 2 year fixed rate @ 4.49 2006 until 2008.
When that fixed rate expired we signed another fxed rate of 6.1 until 31st of July 2010. I recieved a letter from bank in July stating i would now go onto a varable rate of 3.85 or had an option to fix again.On the letter it stated if i fixed again and if my original offer of advance was a tracker that i would lose same. I checked the two previous fixed rate agreements signed that stated i would revert to original offer of advance ecb + 1.05%.

It's still confusing. Write it out clearly. Don't use text speak. Use full sentences and full stops.

Write it out in chronological order. It might even be a good idea to quote from the second letter of offer as I think that is the key one.

Brendan

Hi Bredan

Fixed Rate until 6.1% 31/07/2010
Reads as follows:
At the end of the fixed rate period:UB Ireland Limited may offer to continue the advance for such a period and at such a fixed rate as it may decide.
It may also offer alternative available products.
If such offer is made and you elect to accept then you must do so in writing,your acceptance to be signed by all parties to the mortgage and to be recieved by Ulster Bank Ireland Limited.
If no such offer is made or if any offer is made and no acceptance received as prescribed above,then,from the day following the expiry of any option selected above,the Ulster Bank Standard Variable Rate shall apply.
This is in Accordance with General Conditions 2 of the Offer of Advance originally accepted by you.

I have checked my offer of Advance and the General Condition 2 reads as follows:-
The rate of the Ulster Bank Flexible Mortgafe tracks the ECB rate with a margin which is fixed for the life of the Home Loan term. The margin for this Home Loan is ECB rate plus 1.05%.
When we originally applied for the Mortgage we had to open a U First Account to avail of this.
We still have a U first account and pay a monthly fee of €10.00 for this account.

Please let me know of you require any more information.
Thanks

Unfortunately it seems quite clear that you are no longer on the tracker.

tommy19 said:

If no such offer is made or if any offer is made and no acceptance received as prescribed above,then,from the day following the expiry of any option selected above,the Ulster Bank Standard Variable Rate shall apply.

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You originally signed up to their flexible mortgage but agreed to change the terms when you changed to a fixed rate. It's difficult to see the ombudsman finding any ambiguity in the above - if the fixed rate is not extended, the variable rate will apply.

tommy it is still difficult to fully understand the circumstances here but my read is as follows:

This 3rd offer of a Fixed Rate makes it clear that if you accept it and you originally had a Tracker then you would forego your Tracker rights in the future.

The first and second Fixed Rate offers, which you did accept, did not make this a condition.

In particular, the 2nd offer merely stated that you would revert to the Variable Rate of your original General Conditions 2.

Your original GC 2 states that you have a 1.05% Tracker.

If this is a correct interpretation then it looks like you have a case. The key is that you assert that this warning about being taken off a Tracker only happened this time round and not on the first two Fixed Rate acceptances.

There is no harm in going to the ombudsman. The worst that can happen is that he says no.

I'd say definitely go to the ombudsman and see what he says. It seems that they are favouring the customer with these tracker mortgages.

Also I read in the paper recently that there has been no complaints to the ombudsman about Mortgage companies bullying customers into taking on these huge mortgages in the first place where customers were given these mortgages of up to ten times their wage. So I'd say he'd even like to see a case like this.

If I was you I'd definetely go to the ombudsman

Hi, I think you might have a case to go to the ombudsman. He recently published his 2009 report and he had a case in there where the mortgage was to revert to a tracker after a fixed period. Go to the ombudsman's website, click on Annual Report 2009 and go to page 74 'Mortgage rate had to return to original tracker rate at the end of the fixed rate period'.

There's no harm in going to the Ombudsman, as was already mentionned, the worst he'll do is say no.

Hi Betsy

I have submitted a letter to to UB and enlosed a copy of that ombudsan case. I will update post as soon as they get back to me.

have you tried to speak to somebody in UB,
might be an easy way to start,
they may give you a better understanding of the rates applicable to you.

tommy19 said:

Hi Betsy

I have submitted a letter to to UB and enlosed a copy of that ombudsan case. I will update post as soon as they get back to me.

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If you do want to refer to the ombudsman, you will first have to get a letter of 'Final Response' from UB. It's a standard letter saying that they've investigated your complaint and outlining their response. They have 25 days from the day they receive your request for this letter before they have to issue it and if you don't get it after that, go straight to the ombudsman. Good luck