I switched from a staff variable rate to a staff fixed rate in January 2007. There was no other change in between.That MFA doesn't say whether or not you are entitled to revert to a tracker on the expiry of the Staff Fixed Mortgage.
What does the MFA that you signed in August 2006 (when you switched from your tracker) say?
Incidentally, the wording above suggests that you switched from a fixed rate mortgage to a Staff Fixed Mortgage in January 2007, whereas your earlier post suggested that you switched from a tracker to a Staff Variable Mortgage in August 2006 - did you also switch from a Staff Variable Rate to a fixed rate mortgage at some point between August 2006 and January 2007?
You have to read the original loan agreement and any subsequent MFAs together.
Clause 2 re ceasing to be staff is exactly as quoted i in clause 1 of MFA when fixing in 2007.
3. In converting the loan to a Staff Mortgage loan, I agree that the interest rate applicable to the loan is a variable interest rate and may vary upwards or downwards. The rate shall be the higher of the following two key indicators (1) the prevailing Revenue Commissioners BIK ( benefit in kind) reference rate (2) the one month Cost of Funds reference rate (which is equivalent to the one month EURIBOR rate issued by Bank of Ireland Global Markets on a daily basis). In the event that the Staff Mortgage Rate is certified by the Society to be unavailable for any reason the interest applicable to the loan shall be the prevailing Home loan Variable rate. Notification of any change in the interest rate with condition 6(b) of The General conditions of my original offer letter.
But why is it unreasonable or unjust?
If this happened against a few BoI borrowers who were uneducated in the ways of banking, they might have a case.
But I can't see how 1,800 professional bankers could argue this. It leads me to think that when this happened, it was not a deliberate strategy by the lender.
Brendan
I have heard it argued that "Home Loan Variable Rate" is not automatically the Standard Variable Rate as Trackers are also variable rates. I don't buy that argument as if it were a tracker, it would specify that it was a tracker.
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