# Mortgage Advice - Tracker - Legal position



## star1 (10 Apr 2011)

Hi, I’d like to get some views on the following. 
I used to work for bank. At the time I took out my mortgage with them on staff rates. 
A few months later I left the company. I filled out the paperwork but they did not alter my staff rates arrangement until several months later. They sent me a letter stating that on review of my file they realised I was no longer staff and that I was not on standard variable rates. At the time I said nothing. I had not paid the benefit in kind during that period (approx 6 months). 

When the mortgage was being arranged I qualified for €250k at staff rates so they put the rest €50k on a tracker. 

3 years later - we are drowning in our mortgage at this stage with a whopping 5.55% rate and set to rise. Do I have a case in relation to the advice given. It was all very cosy and I did not have to produce much documentation (late 2007). Also they moved me up to the higher rate with only a letter of notification. I was not given any options. The estate agent (appointed by the bank) just asked how much we wanted the site and final build to be valued at. At the time he said it was a lot more that he thought but went ahead with the valuation. 

I know the times were different. Its my fault etc. I wish the checks and balances had been in place at the time. Please advise on this would be greatly appreciated. 

Really I just want to be able to pay my mortage!


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## so-crates (11 Apr 2011)

Sorry star1 - I am not quite clear on what your question is. What exactly are you asking for advice on? Who do you think you have a case against? What outcome are you looking for?


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## star1 (18 Apr 2011)

Hi So-crates,
If I had not been staff at the time of the application I would have been given a tracker mortage. Instead we are paying 5.5% interest. Can I make a case to the bank now to put me back on that tracker? Ya right I know !
When the bank moved me from staff rates to higher variable rates they sent me a letter. They did not offer me options at the time. Should they have offered me options like tracker or fixed?

Thanks


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## so-crates (25 Apr 2011)

Not a legal expert so all I can offer is bar-fly type opinion. So four years ago you agreed a variable rate mortgage with the bank on the basis that you were on the staff of the bank and therefore entitled to a more favourable rate. Would I be right in guessing that at the time the favourable variable interest rate they gave you was lower than the headline tracker rate? I am sure it was more favourable than the headline variable interest rate. Given that at the time the ECB rate was I think more than 4% the variable rate you were offered probably compared favourably. So you decided to opt for the the variable. You left and continued to benefit from the staff rate for another 6 months? Did they attempt to recoup any money for that 6 months? When they moved you onto the variable rate you didn't then query them regarding a tracker? It sounds harsh but I just fail to see where you have any reason for complaint against them. Them informing you of the new rate that applied by letter would be normal, you had agreed to a variable rate mortgage, you hadn't made any request to change the mortgage to either fix it or to look at going onto a tracker. You didn't make any attempt at that point in time to change the mortgage. They didn't have a crystal ball and nor did you. You probably did not see a situation where the mortgage would become such a burden and certainly would not have been looking for a situation where the ECB would slash its rate. Nor did they (as the PTSB situation is ample testament to).


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