Is this an Ombudsman worthy situation?

K

kendo182

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Hello.

My mortgage lender has confirmed to me that they made an error in 2005 regarding the mortgage for my house. Their error was to offer me rates only that were ‘buy to let’. The house always has been the family residence and they have acknowledged (in writing) this information was passed to them. It meant that we were offered only ‘buy to let’ rates for 3 years after the error. The options included a 'buy to let ' tracker but we chose the ''buy to let' variable rate.

The lender sent correspondence asking us to agree (within 2 weeks of their letter) to their settlement which was not calculated for us. I had to request for a breakdown and it amounted to only €400.Their figure assumed we would be on the variable rate. That was last year.

I am curious as to whether I have any reasonable claim for a ‘tracker’ off them from this period. We had no tracker with them at any time previous to this.Is it worthwhile taking this to the ombudsman? Or am I chancing my arm? All advice welcomed.
 
If you never had a tracker and moved off it and you were given the option of a tracker even if it was a buy to let one and you didn't take it I don't see how you could look for one now based on their error.

What was the difference between their buy to let rates and home loan rates? Back in 2005 many banks were offering the same rates for both so not even necessarily a loss by being on the buy to let rate, there may have been fewer rate type options rather than actual higher rates.
 
Hi kendo

The lender offered you a rate and you accepted it. It shouldn't matter what that rate was called.

However, I suspect that your contract is for a home loan at the home loan tracker rate. It's not that they offered you the wrong rate, I suspect that they put you on a rate different to that which was on your contract.

Why did you choose the variable rate over the tracker rate? I would imagine that they intentionally had the variable rate below the tracker rate to induce you to take the variable rate.

The next question is which lender is it?

If it's ptsb, you should notify the Central Bank of this issue. They won't get back to you but they might investigate it as they are investigating ptsb's behaviour at the moment.

The difference between tracker and variable is so high and all the lenders are exploiting customers on variable rates, that I think you should complain to the Ombudsman.

Contact Padraic Kissane who specialises in this area. He will review your case and not charge you if he thinks you have no case.

Brendan
 
While I think there is no harm having your case reviewed and I agree that banks definitely tried to fiddle around with getting people off trackers later from 2008/09 on but I don't believe that was happening in 2005. Back then they were more inclined to be encouraging trackers so I doubt there was any conspiracy in 2005 to get you off a tracker rate when you admit you were never even on a tracker rate.
 
kendo182 said:
My mortgage lender has confirmed to me that they made an error in 2005
...
It meant that we were offered only ‘buy to let’ rates for 3 years after the error.
Click to expand...

OK, maybe I have misread this.

Kendo can you confirm when you were offered the choice of tracker or SVR? I assumed it was in 2008 - three years after you took out the mortgage.

If your complaint refers to something which happened back in 2005, then you are outside the time limit for a complaint.

Come to think of it 2008 + 6 = 2014 , so you are outside the time limit anyway.

Brendan
 
Thanks a mill chaps.
No conspiracy just a genuine error on the banks part.

I was about to accept the offer (ICS by the way) but was made sceptical by their lack of clarity and helpfulness.
They have pointed out to me that I chose the (BTL) variable back then not the tracker, it was the better rate in 2005 and therefore the regular variable would also have been my choice.

Appreciate your time and thoughts.

Kendo
 
How is the €400 calculated? You would need to list the initial rates offered (BTL) and the rates that were available for home loans, in addition the rates for both for the following 3 years and a calculation will have to be made based on that.
 
Thanks Bronte that is what I got from them, though I did have to ask for it.
ICS wanted me to sign an agreement with them to accept their calculated amount , before telling me what the amount was!
This didn't sound appropriate to me, so I asked and received their calculation similar to what you describe above. many thanks.
K
 
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