# Am I entitled to a tracker mortgage??



## pc440 (12 Jun 2010)

Just wondering if anyone can advise me! I'm just completing my two year fixed rate mortgage and i'm wondering am i entitled to switching to a tracker mortgage.

I checked my mortgage contract and in Part 1 ''Particulars of Offer of Mortgage loan'' it states that my loan term is 2 years fixed annuity and 33 years variable annuity. However, in Part 4 ''General terms and conditions of offer of mortgage loan'' it states the following:

At the end of any fixed interest rate period, the customer may choose between:
a) a further fixed interest rate period, or
b) conversion to a variable rate mortgage loan, or
c) conversion to a tracker interest rate mortgage loan,
at the bank's then prevailing rates appropriate to the mortgage loan. If the customer does not exercise this choice, then the mortgage loan wil automatically covert to a variable interest mortgage rate.

I spoke to a customer rep in the bank today and she said that trackers no longer exist and i have to fix or go variable. Just wondering if tracker should also be an option to me?
Thanks
pc440


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## Jimmyjoe (12 Jun 2010)

IMHO, you're unfortunate, but there's probably somewhere else in the terms and conditions, that says, that if it's not available from the bank, then you can't get it.

However, I'd use the "Part 4" that you've found to leverage the bank manager (never the customer Rep) with "going public" about them...  it should as a minimum, get you a better variable rate, than what is publically available, which will be some way towards a tracker...


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## pc440 (12 Jun 2010)

Thanks for the reply Jimmyjoe. I've gone thru the document with a fine toothcomb and cant see it mentioned anywhere about not having the option available however it does not mention the rate they would apply if i did switch to tracker....maybe i should seek legal advice as to whether i have a leg to stand on or not? I've heard recently of banks not wanting to honour tracker mortgages as an option after coming off fixed rates, so i'm abit sceptical about what i was advised by them today...


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## Jimmyjoe (12 Jun 2010)

I'm not clue'd into the working's of the banks unfortunately to help you, I'm afraid...

Follow it up regardless, with the bank. and make sure that it's the Bank Manager... make him/her work for his/her money...

As for looking for legal advice, I usually find it too expensive to accept ...  However, if you're in the enviable position of a secure job, please do ensure that you're aware of what rates you'll get in other institutions, if you switch mortgages!!!


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## tenchi-fan (12 Jun 2010)

If your contract doesn't specify a rate for the tracker, what's to stop them saying "ECB + 10%" ! 

You could argue you should be entitled to the last tracker rate they offered, or the tracker rate they gave at the time you first fixed. I suggest you put all your dealing with the bank in writing. If you do not get a satisfactory response you can get a sign off letter from the bank and take your case to the financial regulator who could very easily side with you (the financial regulator is NOT being friendly with the banks! In fact, banks are so eager to avoid punitive fines that they try to make sure cases are not forwarded to the financial regulator)

People think legal advice is very expensive. True, your solicitor might charge you €100 to browse through the T&Cs and write a letter outlining your demand for a tracker rate, but imagine how much you could save over the term of your loan. Getting a letter from a solicitor frightens banks more than you probably realise!


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## pc440 (12 Jun 2010)

Thanks tenchi-fan,
True they could make up any sort of interest rate they like! I'm thinking of fixing again as the rates are good at the moment but at the same time i dont want them to pull the wool over my eyes, especially if it can save me € in the long run! Letter writing may be on the agenda!


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## Brendan Burgess (12 Jun 2010)

tenchi-fan means the Financial Services Ombudsman and not the Financial Regulator. 

My own view is that you don't really have that much of an argument here. Some fixed rate mortgages specified that when the rate finished, you would go onto a tracker rate of x% above ECB. You don't have that. 

On the other hand, they drafted the terms and conditions, and should have thought of the scenario of what would happen if they did not have a tracker rate available.  

The best you could get from the Ombudsman would be a direction to the lender to make a tracker rate available. However, I doubt if they would make such a direction. if they did, the lender can of course charge a high tracker.

I suppose that the Ombudsman might direct that they give you a discount on the SVR. 

It might be worth checking the Ombudsman's reports to see if they have made a ruling as this must have come up before.

Brendan


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## Paulk (12 Jun 2010)

Techi-fan,

What tracker rate were you on before you fixed?


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## tenchi-fan (12 Jun 2010)

Paulk, I went with variable because I get a staff discount. Fixing wouldn't interest me anyway as I prefer to live now and pay later


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## RowanTree (22 Jun 2010)

Hi,
I'm in a similar position where by I have a three year fixed and coming off in Sep.

My letter states - Fixed Rate and therefore Home Loan Variable Rate 
My friend's letter also stated this but this is the subsequent pages went onto explain what they meant by Variable Interest Rate. I don't seem to have the additional pages that my friend had which explained what they mean by Variable Rate. 
This is the sentence that he had --> The variable Interest Rate is calculated so that the rate will never be more than 1.5% of the European Central Bank Rate. 

That I don't have the 'explanation' in my letter does this count me out of getting a tracker mortgage?

Thanks very much


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## pinkfloyd34 (22 Jun 2010)

im coming off 2 year fixed this month and got the letter offer today, it was for a tracker ecb+4.75%, this was the best offer, but on the original loan offer 2 years ago it was ecb +0.8% and stated it would be no more than this, can they go back on the original document, should i phone them or seek legal adivce


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## twofor1 (22 Jun 2010)

If the original loan offer gave you the option to revert to ECB + .80% when your two year fixed rate ended, then you should be offered this option.

I would write to your branch manager pointing out their error and requesting your loan revert to a tracker rate of ECB + .80% as per the agreement you both signed on whatever date it was.

Could your offer have said something like our then variable tracker rate currently ECB + .80% ?


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