# BOI - Tracker rate removed from loan offer



## Northsider (16 Jan 2017)

Hi. Im looking for some advice please. I took out a mortgage on a property with BOI in 2005. I sold that property in 2008 and bought a second property. BOI and PTSB offered me a mortgage on the new property. At the time BOI allowed you take a 3 month break from your mortgage if you wanted. I was on maternity leave at this time and BOI agreed to let me take the 3 month break if I stayed with them so I did. They sent me a loan offer for a tracker mortgage. Then they requested a letter from my employer stating I was returning to work. I thought it was peculiar at the time as I was an established civil servant and there was never any issue with my job or my returning to work. The loan offer with the tracker ran out and the new loan offer, the one I drew down on, had an SVR. This happened in July 2008 so the cracks had appeared in the property/banking sector. Was BOIs request from my employer a red herring and do i have a case? Or am I just very unlucky!!
Thanks.


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## todo (16 Jan 2017)

I assume the the interest rate on the new offer was a little lower or the same as the first offer and the only difference in the two offers is that one is missing a special condition on page 2 and that the interest rate may also be different.

I think this was a very common trick in Bank of Ireland, it all hinged around the fact that the consumer might not notice the special condition was missing, and would be happy to get a slightly lower rate, thinking that the new offer was still a tracker mortgage.

When you signed the second offer letter, did you know it was an SVR or did you expect it to be a tracker.

When they sent the second offer, did they explain that it was a variable rate and that tracker mortgages were no longer available.

If you expected it to be a tracker then I think you have a case as they are in breach of the consumer protection code.

Here are the general principles of the consumer protection code August 2006, in my view they are in breach of 1, 2, 3, 4, 5 and 6.

1 acts honestly, fairly and professionally in the best interests of its customers and the integrity of the market;
2 acts with due skill, care and diligence in the best interests of its customers;
3 does not recklessly, negligently or deliberately mislead a customer as to the real or perceived advantages or disadvantages of any product or service;
4 has and employs effectively the resources and procedures, systems and control checks that are necessary for compliance with this Code;
5 seeks from its customers information relevant to the product or service requested;
6 makes full disclosure of all relevant material information, including all charges, in a way that seeks to inform the customer;
7 seeks to avoid conflicts of interest;
8 corrects errors and handles complaints speedily, efficiently and fairly;
9 does not exert undue pressure or undue influence on a customer;
10 ensures that any outsourced activity complies with the requirements of this Code;
11 without prejudice to the pursuit of its legitimate commercial aims, does not, through its policies, procedures, or working practices, prevent access to basic financial services; and
12 complies with the letter and spirit of this Code.


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## corktim (17 Jan 2017)

Two things:

The letter request is not out of the ordinary. It's more to prove that you are not leaving your job than have one to go back to.

Unless you have actually drawn down the funds you are at the mercy of the bank as it is the rate at drawdown that applies. Rates will often change after an offer has issued and while this is slightly different I think you would find it hard to make a case.


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## Brendan Burgess (17 Jan 2017)

Bank of Ireland offered you a mortgage which you signed. That mortgage did not have a tracker rate in it. So I really don't see what the issue is here. How could you have a case? 

They offered you a tracker which you did not avail of in time.  

If Ryanair offers me a €1 flight to New York, open until 30 January. I can't sign up on the 3rd February and claim that I should have been charged only €1. 

The only circumstances in which you might have a case would be the following: 
1) They enclosed a cover letter saying "please find enclosed the new offer letter which has the same terms as the old letter.". I have seen such a case being upheld by the Ombudsman. 
1a) You had a conversation with BoI where they told you that the terms were the same. 
2)  You agreed to stay with Bank of Ireland on condition that you were getting a tracker mortgage. 

So what should you do? 

As you never had a tracker mortgage on this account, I doubt that you would be included in the Review. 
So write to BoI and ask for your tracker "back". 
When they refuse, complain to the Ombudsman. 

Brendan


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## Northsider (17 Jan 2017)

Thank you all for taking the time to reply.

Todo, you are correct that the rate difference at the time was negligible and the repayment amounts were roughly the same.

The issue I have is that the only reason I didn't draw down on the offer with the tracker is because the bank came back with the letter request which I think was a bit of a red herring. My employer had already completed all the necessary documentation in relation to my salary and length of employment etc. Anyone can leave their job at any time, the fact I was on maternity leave is irrelevant. Why didn't they request a letter from my husband's employer also?

I don't have a copy of the cover letters and have requested a copy of my file from BOI.


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## todo (17 Jan 2017)

Northsider said:


> Thank you all for taking the time to reply.
> 
> Todo, you are correct that the rate difference at the time was negligible and the repayment amounts were roughly the same.
> 
> ...



So you signed and sent back the first offer letter which was for a tracker, I assume at this point the pack was sent from BOI to your solicitor.

What happened at this point did your solicitor not do anything for three months and then send the information back to BOI and at this point they issued a new offer?

What caused them to send you a new offer?

I believe from about mid August 2008 onwards there was an effort undertaken in Bank of Ireland to limit there exposure to trackers. At this point they done everything in there power to remove tracker rates from any inflight mortgage applications.

I still believe they are in breach of the consumer protection code. Its vital that you get both of those offer letters. How long was the first offer valid for?


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## Brendan Burgess (17 Jan 2017)

todo said:


> I believe from about mid August 2008 onwards there was an effort undertaken in Bank of Ireland to limit there exposure to trackers. At this point they done everything in there power to remove tracker rates from any inflight mortgage applications.



Bank of Ireland were well within their rights to stop the tracker product and not offer it to any new customers or to any new applications. 

If they made an offer with an expiry date, they would have been well within their rights to offer a new product if the loan was not taken up before the expiry date.

Brendan


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## Brendan Burgess (17 Jan 2017)

Northsider said:


> Anyone can leave their job at any time, the fact I was on maternity leave is irrelevant. Why didn't they request a letter from my husband's employer also?





corktim said:


> The letter request is not out of the ordinary. It's more to prove that you are not leaving your job than have one to go back to.



Hi Northsider. You were on leave. They asked if you were coming back. That is standard practice as tim has explained.

Brendan


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## todo (17 Jan 2017)

Brendan Burgess said:


> Bank of Ireland were well within their rights to stop the tracker product and not offer it to any new customers or to any new applications.
> 
> If they made an offer with an expiry date, they would have been well within their rights to offer a new product if the loan was not taken up before the expiry date.
> 
> Brendan



The OP will need to check if the first offer has an expiry date, and if the second offer was after the expiry date.

Is a mortgage contract only in force after the first draw down or is it after the consumer solicitor sends back the "pack"


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## Brendan Burgess (17 Jan 2017)

todo said:


> The OP will need to check if the first offer has an expiry date, and if the second offer was after the expiry date.



It seems clear from the original post that this is the case: 



Northsider said:


> The loan offer with the tracker ran out


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