Challenging the mortgage rate applied to loan

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penang

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Hi

I wonder has anyone else been in my position – described below and could offer any advice on how to proceed.

To keep this as short as possible I have two mortgages with a large bank in Ireland. One is the primary mortgage for my home which I took in 2003. The other is for some improvement work and I took that out in 2006. It is significantly less than the primary one.

In 2007 an agent of the bank called us and advised a move to a tracker mortgage as they had just dipped below the standard variable rate. We took up their offer and returned the approval forms.

However I have just noticed yesterday and I know this is very negligent of me, that the tracker rate was applied to the smaller mortgage and not the primary one. I have copies of the forms I returned to the bank authorising the new rate. I called the bank and they asked me to write to them and they would investigate. However they are adamant that they did not receive forms to change the rate on the primary mortgage.

Has anyone been in a similar position and might have some advice on how to proceed?

As always many thanks to all at AAM
 
Did the letter from the bank offering the tracker mention that it was for both loans?
 
Yes I recieved two forms from the bank offering tracker rates on both. I have copies.

Thank you Bronte
 
Ok you got two forms, one for each mortage. Was there a letter also? Did you send back both forms, did you put in a letter? Sounds like it's your word against their's or another two possibilities

1. You forgot to put in both forms

2. Bank staff member inputting the rate thought you had duplicated the form and threw one away. It can happen.
 
I returned both forms but doubt I included a letter. I dont have a copy of a letter just forms called "Application for change to tracker mortgage, Mortgage form of authorisation" Many thanks
 
Most rate change forms have a letter, and where there are two mortgages, even for the one property, they are generally sent in two separate envelopes by the bank.

Normally a top up and the original mortgage would not have a rate change option on the same date. But your case is slightly different in that the bank telephoned (?) you to tell you about the new tracker. Were you at that time on variable on both, were either of them fixed?
 
Both standard variable at the time. I don't recall a letter just the rate change forms. I agree with you - its my word against theirs at this point and I guess all I can do is write in and let the investigation take its course.

Thanks
 
did you return both tracker rate forms in the same envelope?

they may have a scanning system where all letters are scanned on,
the scans may ne together or separate,
ask them to check both accounts on the scanning system for the same date as the top up letter is showing.
 
This will probably end with the Ombudsman.

As the behaviour complained of occurred in 2007, you are getting close to the 6 year time limit. So get going on this as quickly as possible.

I hadn't heard of a bank agent calling people advising them to switch to a tracker.

It would be odd to take their advice on one loan, but not on the other.

It is also a bit odd, that it has taken you 5 years to notice. Did you not get two different letters each time rates changed?

Brendan
 
Brendan Burgess said:
I hadn't heard of a bank agent calling people advising them to switch to a tracker.



Brendan
Click to expand...

My brother was called asking if he wanted to change to a tracker. He meant to but never got into the branch to sign the forms. At the time there was very little between the two rates so he wasn't too worried. He is sorry now
 
Hi Brendan.

We did get two separate letters for each rate change. I admit I was not as rigorous as I should have been and only realised the difference yesterday when I received an unexpected notice. I don't feel too clever at the moment. I will write to the bank this evening
Many thanks
 
Nothing uncommon in being called and offered tracker, remember at the time the banks thought it was a great plan to switch people to trackers. As an employee of a bank at that time, we had lists of mortgage holders to ring and try and convince to switch to tracker, not as easy as it might sound! Not everyone went for it. Anyway if they agreed you just posted out the form or forms if more than one mortgage, I would have taken no notice of someone not returning both forms as some people decided to hedge their bets and leave one loan variable, one tracker or go with one fixed, one tracker or any other permutation.
 
Hi RAmeire

Thank you for your reply. Yes I asked them to check and double check. The have the scan of the form for the smaller loan.

I would say we returned both forms in the same envelope all right but I have absolutely no way to prove this.

Regards
 
Just an update on the above. The bank have settled in full with myself and my wife refunding all of the interest since 2007 and switching our mortgage to a tracker rate. I would like to point out that they settled with the minimum of fuss and without serious involvement from the ombudsman. Many thanks to all at aam. Donatinon made.
 
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