Hi Greg
An interesting angle.
The contract is clear:
"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."
2007 fix for two years - on expiry offered tracker of ECB + 1% , but fix for another two years.
2009 expiry of 2nd fix rate period - not offered a tracker, but Ombudsman says should have been offered one.
Let's say that ptsb loses/concedes the case, they will offer the rate on the date of expiry of the fixed rate period, which would be, say the margin of 3.25%.
Are you arguing that the margin should be the margin of 1% at the end of the first fixed rate period?
" The interest rate applicable to Tracker Mortgage loans is made up of the ECB Rate plus a percentage over the ECB rate. The amount of the percentage over the ECB rate will depend on the amount of the loan and that percentage will not be exceeded over the term of the loan"
So the margin for the full term of the mortgage should be the margin offered at the end of the first fixed rate period?
Worth arguing ok. It certainly would be in line with the principle and understanding of what a tracker mortgage is. Once a margin is set, it's set for the remaining term. But ptsb would argue that the contract is clear that it's the rate appropriate when the fixed rate period ends.
It would be in keeping with all the other cases where a rate was specified in the contract. ptsb initially argued that they gave up that rate and were entitled only to the "then current rate" on expiry of the fixed rate, but subsequently put everyone who had such a rate back on that rate.
Brendan