# Applied for and negotiated tracker mort in 06, but contract was for SVR, any comeback



## kmcden (14 Feb 2011)

HI
I wonder if anybody might have any idea of whether I have a case here?

In 2006 I was sold and applied for a tracker mortgage. 

The application form had tracker ticked but when the offer letter came in it was for variable. 

I didn't noticed this error at the time and signed the offer letter.   There was a missing part of the form (I believe), in so far as an additional form was required if you opted for tracker ...which neither the branch nor the head office noticed.  They never rejected me for tracker and as far as I was aware everything was in order. 

In May of 2010, when the institution I have the mortgage with, increased their rates outside of the ECB rate being changed,  I wasn't expecting an increase but a letter came.  

I have followed up with the bank and they have advised me that they won't change their position.  I believe that they should have noted the error in the application,  they should have advised me that the tracker was rejected or that the application form was incomplete,  and while I signed off the offer letter, they clearly have failed in their administration and this admin error has the potential to cost me 10s of 1000's.

Do you think i should pursue this further? 

I can't afford to spend out loads of legal fees but the cost of this error is massive and I can't really afford not to either. 

Any thoughts would be appreciated.  

Thanks


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## niceoneted (14 Feb 2011)

IN May 2010 did your repayment increase? you say - I wasn't expecting an increase but a letter came - and what was in the letter. 

It sounds to me like you applied for a tracker mortgage but that you did not fit the criteria for it and were offered the variable rate. 
Onus would be on you to ensure what you are signing as in let the buyer beware.


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## kmcden (14 Feb 2011)

Hi, 
Yea,  the increase did come in May 2010.  And again in August 2010. 

When i applied for the mortgage - I was sold it as tracker.  I was about 70% loan to purchase price with good credit history (this was my second purchase, I sold my first house and bought this one).    That was well with in the accepted limits for tracker. 

All the discussions had been about our taking out a tracker mortgage - we were never rejected and I firmly believe this to have been an administration error on their part. 

Agree - i signed the letter - but I'm not in banking, the tracker rate is a type of variable rate - just tied in with the ECB rate so terminology to me is not glaringly obvious. 

I never had any reason to doubt they'd give me Tracker hence i didn't consider to check this on the letter. 

The sale of the old house and purchase of the new (along with full time job and small child) was difficult enough... I expected a certain level of professionalism from them to get it right. 

It's just too expensive a mistake to leave any stone unturned.


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## NorfBank (14 Feb 2011)

kmcden said:


> I didn't noticed this error at the time and signed the offer letter.
> 
> 
> Do you think i should pursue this further.  I can't afford to spend out loads of legal fees but the cost of this error is massive and I can't really afford not to either.



If you signed the offer letter then you accepted the terms of that offer and so have a binding contract under the terms of the letter. 

If you want to make a complaint then you should follow the complaints procedure of the lender. If you are not satisfied then you can refer to the Financial Services Ombudsman. The FSO cannot help if you start legal proceedings.

[broken link removed]


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## kmcden (14 Feb 2011)

Yea,  contracts are what worry me and why I question what I can do.   I signed the contract and that is legally binding. But if I didn't fit the critera for Tracker that should have been told to me in advance or in conjunction with receipt of the offer letter.  That at least would have allowed me to pursue a loan with  an alterative lender.   I have pursued this mater with the lender in question and they will not alter their position.  My next step is to go to the ombudsman with a complaint but i wanted to get a feel for whether people thought there was any point.  Contracts are legal and binding.  I just feel tricked  by them.  They sold me one thing but then slipped in a different product  right at the end without telling me right at the hight of all the hassle of selling and buying.  I truly believe that this was an admin error and they have during our communiations to date never advise that my application for tracker failed.   I guess i trusted them (more fool me).  I feel cheated by them!  I really feel like I was tricked! And tricked out of an awful lot of money!


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## NorfBank (14 Feb 2011)

Did you get a *Reasons Why / Statement of Suitability Letter*?

This would have explained the product they were providing to you.

These came into play from Jul 2007 onwards but some institutions provided them in 2006.


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## kmcden (14 Feb 2011)

What's a *Reasons Why/statement of suitability letter*? 

I'm not sure that I did but there again, I'm not sure what that is?

I am certain that I was never told that Tracker was off the table. 

I applied for it but was offered something different with no advise from them that what i applied for was not available to me.  That's my main issue here.  And also why I believe it was an admin error - They never rejected me,  they just didn't process me right!.  I can ask that question of them though.

I did receive a quote from then in the months before that (in the June and i settled the mortgage in the October)   It was originally drawn up for variable and I got them to correct this and reissue the quote as tracker. I have the same quote letter dated the same day. The second had letter had the 'tracker' underlined. The rates at the time were the same 1% above ecb.  I submitted these to them for review but it made no difference to them.


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## wbbs (14 Feb 2011)

There were no reason why/suitability statements for mortgages in 2006.

Did you get a copy of the application form showing tracker ticked?

Mind you I dont think you have a case, you signed loan offer, probably with a solicitor and should have gone through the details to ensure they were correct before signing.


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## csirl (15 Feb 2011)

Always read any contract you are about to sign. If you dont understand it, get someone who does to take you through it clause by clause.


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## robd (22 Feb 2011)

Don't see how there's any comeback here despite some of the fuffling replies.

An application is not legally binding.  You're just asking for, or saying what you'd like.

Bank didn't offer you what you asked for, for whatever reason, but something different and you accepted this.  No different than offering you less principal sum, or and increased term, or offering to you a higher rate based on your ability to repay.

You subsequently accepted their offer and signed a contract with them.

A clear case of "caveat emptor" if ever I saw one.


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## Brendan Burgess (22 Feb 2011)

You certainly have a case worth briinging to the Ombudsman.

It will cost you nothing and the Ombudsman will make a decision on the facts of the case. 

You have 6 years(?) from the date of the issue arising to bring a complaint. 

Have you complained to the bank in writing? 
Did they reply in writing? 
They should issue a "final response" letter which should tell you how to complain to the Ombudsman. You have around 21 days(?) to make a formal complaint to the Ombudsman after receiving this letter. 

You should apply to the lender under the Data Protection Act for a copy of your file. You may find some correspondence of interest on this. 

I believe, that if you and the lender agreed to a tracker mortgage but that a clerical error on their part resulted in the wrong paperwork, the Ombudsman will rule in your favour. 

The fact that you rejected the quote for a variable rate mortgage and asked for a requote as a tracker will stand to you. 

Check out the Ombudsman's Annual Reports and Case Studies to see if there were any similar cases.

Brendan


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## Bronte (23 Feb 2011)

I also think you have a case and know of a similar case with a sibling of mine.  They were quoted an interest rate of x amount of tracker and didn't notice for a couple of years or so but a different rate was applied.  They had some email or other document with what should have been the correct rate and with this the bank backdated the correct interest rate.  Not sure what was in the contact.

In my own case the bank also applied the incorrect rate of interest, they are saying they applied residential fixed rates in 2005 to my investment property and because it was their error they will not do anything about it.  Banks can and do make mistakes frequently.  During the boom their computers were firing out all sorts of fixed and tracker rates and my guess is many mistakes were made.  

Ask the bank for all documentation as you are entitled to do.  Also go back through all your files for proof of the tracker discussions.


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## pinkfloyd34 (23 Feb 2011)

this is exactly what happened me, got mortgage approval in dec 07 for tracker ecb +.8%, have letters with this in black and white, waited for house to be finished (aug08)to draw it down, in may 08 got a new offer of ecb tracker - what ever ptsb tracker rate was when the 2 year fixed rate ended, i signed up to this unknowing what the tracker rate would be but thought it might be ok, roll on aug 2010 and the letter of offer was ecb +3.25%, i nearly got sick as i missed out on the lower tracker rate by 8 weeks, i put it writing to the bank but they said i signed up to the higher rate, have the complaint gone to the ombudsman, they invited ptsb to discuss it between the 3 of us, ptsb declined, ombudsman are going to investigate it further, havent heard anything in 2 months as there is a waiting list, its similar to op's situation, i thought i wouldnt have much hope but reading here has giving me some hope that it can be recified, ecb +3.25 is ok to have now but when rates rise i will be in trouble so hope the ombudsman can do something


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## DingDing (23 Feb 2011)

Worth bringing the case to the ombudsman.  It won't cost anything (apart from a couple of stamps).  I won a case a couple of years ago.

You have to persue the complaint with your mortgage provider first as you need a letter from the lender saying that you have exhausted their internal procedures.


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## mercman (24 Feb 2011)

I have a similar case where I was offered a tracker mortgage, it was accepted and signed for and then two months later when the money had to be drawn down in a hurry the Bank changed their terms and refused me the tracker. A new loan application was issued and had to be signed to complete an arkward transaction. The Bank are so wrong in this regard and as son as time allows, will seek a letter of Final Response prior to bringing the case to the FSO.


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## Brendan Burgess (24 Feb 2011)

Pinky

Your problem seems to be a different one. 

The poster in this case agreed a rate in correspondence, but the paperwork did not reflect the underlying agreement. 

In your case, you had a fixed rate to go on a tracker when it expired. There was no limit on this tracker and you are getting a very expensive tracker. 

Bank of Scotland gave a price promise with their fixed rates. "You will go on a tracker which will be no more than 1.5% above the ECB rate". Permanent tsb gave no such price promises.


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