A
In Ireland how come there are different svr mortgages available for new as opposed to existing customers? The Financial Ombudsman office in the UK seem to frown on same, see link below
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/21/complaints-dual-variable.htm
At the time I was in UK and mortgage with HSBC I got fobbed off, Someone went further to FSO and won. As a result HSBC were ordered to make everyone whole.., I got 2k GBP back
By rights you could challenge here too
Sarenco,
You did not complete the quote,
"We have never said that lenders cannot have more than one variable rate. We have decided the lead cases on the basis of what rate those borrowers were entitled to in the light of their mortgage contracts and the legitimate expectations they were entitled to have under those contracts."
Legitimate expectations Sarenco, do you know what that means with regards to contract law?
This is a consumer forum to advise and help consumers, it is not a platform to dash consumers hopes of legal recourse against the banks that have acted,in some cases, deplorably.
Safe co,
I never said it was,but the Financial Ombudsman found against certain banks in England who had dual variable rate mortgages, due to their respective mortgage contract BUT ALSO due to the LEGITIMATE EXPECTATIONS that the mortgagors had when they entered these contracts.
I believe you are wrong in your interpretation of this judgment. The judge clearly does not have to mention the actual words "legitimate expectation" when sanctioning the financial ombudsman do for his failure to even consider the possibilities of a Millars being able to establish a collateral contract in the context of the case. You know this as well as I do. It seem to me you like you get too involved in semantics and do not look at the issue from a broader legal perspective, ( a bit like the F.S.O ).
The financial Ombudsman in the UK stated in relation to the lead cases that it investigated that "on the basis of the rates that those borrowers where entitled to in light of their mortgage contracts and the legitimate expectations they (the mortgagors) where entitled to have UNDER THOSE CONTRACTS." Therefore the Financial Ombudsman in the UK believes that mortgagors can have legitimate expectations under contract, but you deny this. Someone is wrong!! Guess who?
Irish borrowers who have legitimate expectations under their contract as to what the svr mortgage rate should be, can also complain to the F.S.O. in Ireland, like borrowers did in the UK.
Sarenco,
The Financial Services Ombudsman in the UK also explains the following background as a reason why it took action against English Banks in relation to having two different svr mortgage rates, one for new customers and one for existing customers:
"The single variable mortgage rate was seldom linked directly to any external benchmark. So the lender was in a much more powerful position than the borrower, because the lender could vary the interest rate from time to time.
So why did borrowers enter into such an apparently one-sided bargain- The one-sidedness was mitigated, to a very limited extent, by the Unfair Terms in Consumer Contracts Regulations and the Consumer Credit Act. But many borrowers know little or nothing of these.
The main reason, as lenders well knew, was because borrowers had a legitimate expectation that their lender intended to retain its customer base in a competitive market, and would set its available going rate for no-frills mortgages accordingly.
It would defeat that legitimate expectation if the standard variable rate ceased to be one where the lender competed in order to retain its existing borrowers. That would be especially important where existing borrowers were tied-in and had to pay an early repayment charge to escape."
Food for thought, from a Governmental point of view, in light of the recent meetings of Minister Noonan with the six main banks! Time to wave this BIG STICK at the banks.
As for your last comment I have no time for sycovants.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?