Banks Mistake? Never switched us from Bridging to Tracker now they wont do Tracker!

[eileen123]

We took out our mortgage over 2 yrs ago.

As we built our own home we were on a bridging loan until our final stage payment was drawn down (which was over a yr ago), then, once the final stage payment was drawn down we were to be moved onto a tracker mortgage.

I noticed about 4 month ago that our mortgage had never been changed from a bridging loan to an actual tracker mortgage. We were still paying our mortgage at the higher interest rate of the bridging loan. Now, the bank will not put us on a tracker mortgage as they have stopped doing them.

I'm thinking that it should have been up to the bank to have sorted our mortgage out correctly once the final stage payment was drawn down.

If they had we would now be on a tracker mortgage and not a variable one. Has anyone else experienced this?? I am wondering if there is any point in pushing the bank on this point?

 

[Senna]

Re: Banks Mistake???

YES, push the bank for the tracker, they are doing every under-hand trick in the book to change people from trackers.
Check your copy of the loan agreement, if it say you will be change to a tracker rate when the bridging loan ends, then thats what you sould be on. Dont let them away with it.

 

[Madangan]

Re: Banks Mistake???

OP

Also ask the bank to refund to you the difference between the tracker rate and the bridging rate from point of final drawdown to date.

There is an element of blame attached to yourselves for not being proactive as no doubt the Bank has/will point out to you. If you cannot come to an amicable agreement then this will be worth pursuing tothrough the Financial Ombudsmans office. I could not guarantee total success with the Ombudsman as each case is dealt with on its merits and there may be small print which covers the Banks. However it is certainly worth the risk of losing your argument as the winning of it will be very very beneficial...especially if the ecb rate falls to 1.5% as expected by some in March.

 

[L.J]

Re: Banks Mistake???

Hi, do you have written confirmation from the bank confirming the proposed rate changeover? If yes, I certainly wouldn't just let it go and would further enquire and if necessary register a complaint to ensure a formal written response & explanation.

Under the Consumer Protection Code all firms that are regulated by the Financial Regulator must have a complaints handling procedure in place, they must write to you within five working days of receiving your complaint and cannot let more than 20 business days go by without letting you know how your complaint is being dealt with. Details on the Code are available on the Financial Regulator website at the following link http://www.itsyourmoney.ie/files/publications/p_20070921103118Consumer%20Protection%20Code%20-%20your%20little%20red%20book.pdf.

Consider, if the error was the other way, i.e. the bank were at a loss, how do you think the query would be handled?