# Has anyone coming off a fixed rate with ptsb been offered a tracker?



## Brendan Burgess (9 Feb 2011)

I was speaking to someone today who has a right to a tracker after their fixed rate expires. 

PTSB has offered them their current tracker rate of ECB + 4%. 

I presume it's one for the Ombudsman although it would be a difficult one to argue with.


----------



## NorfBank (9 Feb 2011)

Sounds odd, usually it is stated what tracker you will revert to at the end of the fixed rate.

e.g  ECB + 2.25%

I have not seen one along the lines of "you will revert to the prevailing tracker" at the end of the fixed rate.

Was an exact tracker rate not mentioned anywhere on the fixed rate loan offer?


----------



## corklad (10 Feb 2011)

I came of a fixed with PTSB in May and was offered a ECB + 3.25% tracker (as well as a 3.15% SVR + awful fixed rates) which I took.

I can't remember the wording on the contract (I can root it out) but it was something like I would automatically go on to the appropriate tracker rate at the end of the fixed term. Nothing mentioned about what rate.


----------



## twofor1 (10 Feb 2011)

Any use ?

(i) " On expiry of the fixed rate period, and where the applicant chooses the option of a tracker mortgage interest rate, the interest rate applicable to the loan will be the tracker mortgage rate appropriate to the balance outstanding on the loan at the date of expiry of the fixed rate period. In the absence of instructions from the applicant at the expiry of the fixed rate period, the interest rate for the loan will be the tracker mortgage rate. "

http://www.askaboutmoney.com/showthread.php?t=143916


----------



## corklad (10 Feb 2011)

twofor1 said:


> On expiry of the fixed rate period, and where the applicant chooses the option of a tracker mortgage interest rate, the interest rate applicable to the loan will be the tracker mortgage rate appropriate to the balance outstanding on the loan at the date of expiry of the fixed rate period. In the absence of instructions from the applicant at the expiry of the fixed rate period, the interest rate for the loan will be the tracker mortgage rate.



Cheers!

That's exactly it. My take at the time was that it's their choice of the tracker rate. What do ye think?


----------



## twofor1 (10 Feb 2011)

Based on the limited information we have;

If ECB + 4% is PTSB’s tracker rate today and that’s what they are offering, then I don’t see how one could reasonably argue they are not getting their entitlement.


----------



## Brendan Burgess (10 Feb 2011)

It's a tough one. 

I would argue that when I switched from a cheap tracker to a fixed rate, I would expect to go back to a cheap tracker on expiry of the fixed rate. 

They would argue that I could expect away, but that is not what the contract says.

The current svr is around 5%, so they could well argue that ECB + 4% is a fair tracker rate. At least it protects the borrower against any further increases not related to the ECB rate.


----------



## corklad (10 Feb 2011)

I would tend to agree Brendan. I went straight on to a fixed at the start of the mortgage so I can't make the argument about going back on a cheap tracker.

I didn't bother at the time of coming off the fixed to argue it with them. I didn't feel I had any grounds. Assumptions and expectations don't hold up in a legal argument (unfortunately!)


----------



## twofor1 (10 Feb 2011)

Brendan Burgess said:


> It's a tough one.


 
Possibly your friend does have an argument,

‘’Having considered the evidence submitted by both parties, the Ombudsman was of the opinion that the original loan offer committed the Society to a tracker mortgage rate of 0.75% above the ECB Repo rate for the entire 30 year mortgage term.’’ 

In summary the Ombudsman found that the mortgage condition was not superseded by the MFA and so the Society must offer the Complainant a tracker rate as per the original loan offer. 

Page 9 December 2009 Case Studies;

http://www.financialombudsman.ie/case-studies/


Here’s the criteria used to decide such cases;

The Bureau, for these complaints, examines the information given to the consumer by the Provider regarding the change of rate and its implications on their mortgage and whether it was sufficient for the consumer to make an informed choice based on the information garnered. 

The cases frequently require an examination of the clarity contained in both the mortgage agreement and the Mortgage Form of Authorisation concerning the rate which the Complainant’s fixed rate would revert to upon expiry. 

Page 21 Bi-Annual review 2010

http://www.financialombudsman.ie/


----------



## bcalm (7 Jan 2012)

*PTSB Fixed Term Contract Ending*

Hi,

My 5yr fixed term contract ends in March (5.15%). My special conditions section within the letter of offer clearly states I am to revert to a tracker rate unless I instruct the bank that I would prefer another product. However, the margin to be added to the ECB rate is not confirmed anywhere in the special conditions. Has anyone else out there been in the same situation - reverted to the tracker and if so, at what rate? I have since consulted with my solicitor to investigate on our behalf. Thanks.


----------



## Brendan Burgess (26 Jan 2012)

Hi bcalm

I wonder if the new 3.7% on offer to new customers helps your case. This suggests to me that the tracker should be ECB + 2.7%

Brendan


----------

