wexican budda
Registered User
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Hi All
Back in 2006 I took out a LTV tracker mortgage with what was then National Irish Bank to build our family home which remains our sole and principle residence. In 2010, with the first child on the way, we decided that it would be good to have some stability in our finances and so we moved from a LTV ECB tracker mortgage to a 5 year fixed rate mortgage. During discussions, the one thing I stressed time and time again to our personal banker was that if there was even the slightest chance that we would not have the option of reverting onto a tracker rate at the end of the 5 year fixed period then we wouldn't go ahead. Our personal banker assured us that there would be no issue with reverting onto a tracker. I asked for this in writing and on the day we signed up for the 5 year fixed rate we were handed a letter on headed paper in our branch stating:
"in relation to your current fixed rate LTV home loan, when this account expires in June 2015 you have the option of reverting back to the LTV ECB Tracker........... A new valuation however will be required and if the loan to value exceeds 80%, the LTV ECB tracker or LTV Fixed Rates will no longer be available to you."
Once we got this letter I felt we were protected and in a good position going forward. A few weeks back I received a letter from Peppers on behalf of Danske Bank advising that the 5 year fixed period would end on 1st June and that the mortgage would automatically switch from the fixed rate of 2.82% to the variable rate home loan interest rate of 4.95%. This letter did state:
"you may have the option of reverting to an ECB tracker rate subject to certain criteria....... please contact a member of our team to discuss.
On receipt of this letter I rang Peppers advising that I felt that I was entitled to go back onto a tracker rate and that I had a letter from our then personal banker outlining this entitlement. The lady in Peppers told me they had no such letter on their records and that she had never seen anyone go back onto a tracker from a fixed but to send in the letter and they would get Danske to have a look at it. I did this by registered post. I got correspondence back from Danske yesterday stating
"as per agreed terms and conditions of the mortgage we would be moved onto standard variable rate which at this time is 4.95%". the response goes on to say that the letter we received in 2010 was "a standard letter that was sent out to all customers on a fixed rate mortgage".
when I look at the small print on the mortgage it does have 2 lines in it that states "unless a further fixed period is agreed in accordance with clause 11.3, at the end of the fixed period the rate of interest applicable to the loan will revert to our then applicable variable home loan rate.
In hindsight I should have read the T&C's more carefully and got our personal banker to remove that clause but I took the assurances and the letter I received at face value.
Question I have is do I have any chance of getting back onto the LTV ECB Tracker rate?
Does the letter I have give me any protection?
They state that this letter was a standard letter sent out to all fixed rate customers however, this was not posted to us, it was handed to us in the bank on the day we signed up. Secondly, if it was a standard letter surely they would have had it on my file? Are they just trying to fob me off with this response and should I take it further. If so should I go legal straight away or go to FSO ??
Thoughts appreciated
Thanks
Back in 2006 I took out a LTV tracker mortgage with what was then National Irish Bank to build our family home which remains our sole and principle residence. In 2010, with the first child on the way, we decided that it would be good to have some stability in our finances and so we moved from a LTV ECB tracker mortgage to a 5 year fixed rate mortgage. During discussions, the one thing I stressed time and time again to our personal banker was that if there was even the slightest chance that we would not have the option of reverting onto a tracker rate at the end of the 5 year fixed period then we wouldn't go ahead. Our personal banker assured us that there would be no issue with reverting onto a tracker. I asked for this in writing and on the day we signed up for the 5 year fixed rate we were handed a letter on headed paper in our branch stating:
"in relation to your current fixed rate LTV home loan, when this account expires in June 2015 you have the option of reverting back to the LTV ECB Tracker........... A new valuation however will be required and if the loan to value exceeds 80%, the LTV ECB tracker or LTV Fixed Rates will no longer be available to you."
Once we got this letter I felt we were protected and in a good position going forward. A few weeks back I received a letter from Peppers on behalf of Danske Bank advising that the 5 year fixed period would end on 1st June and that the mortgage would automatically switch from the fixed rate of 2.82% to the variable rate home loan interest rate of 4.95%. This letter did state:
"you may have the option of reverting to an ECB tracker rate subject to certain criteria....... please contact a member of our team to discuss.
On receipt of this letter I rang Peppers advising that I felt that I was entitled to go back onto a tracker rate and that I had a letter from our then personal banker outlining this entitlement. The lady in Peppers told me they had no such letter on their records and that she had never seen anyone go back onto a tracker from a fixed but to send in the letter and they would get Danske to have a look at it. I did this by registered post. I got correspondence back from Danske yesterday stating
"as per agreed terms and conditions of the mortgage we would be moved onto standard variable rate which at this time is 4.95%". the response goes on to say that the letter we received in 2010 was "a standard letter that was sent out to all customers on a fixed rate mortgage".
when I look at the small print on the mortgage it does have 2 lines in it that states "unless a further fixed period is agreed in accordance with clause 11.3, at the end of the fixed period the rate of interest applicable to the loan will revert to our then applicable variable home loan rate.
In hindsight I should have read the T&C's more carefully and got our personal banker to remove that clause but I took the assurances and the letter I received at face value.
Question I have is do I have any chance of getting back onto the LTV ECB Tracker rate?
Does the letter I have give me any protection?
They state that this letter was a standard letter sent out to all fixed rate customers however, this was not posted to us, it was handed to us in the bank on the day we signed up. Secondly, if it was a standard letter surely they would have had it on my file? Are they just trying to fob me off with this response and should I take it further. If so should I go legal straight away or go to FSO ??
Thoughts appreciated
Thanks
