Would it be possible to see the Oct 2007 Mortgage form of Authorisation, you should cover any identifying information.
It seems bazaar that you would choose the higher rate.
Ok here is another angle. Lets say I definitely ticked a box indicating a variable rate of 5.34% when my first year fixed term came to an end. Now observe this quote form my original loan offer ''if the lender offers the borrower a choice then in either case , in accordance with general condition 7(b) of the offer letter, the interest rate applicable to the loan will be a variable interest rate. This variable interest rate may vary upwards or downwards. the interest rate shall be no more than 1.25 above (repo rate) FOR THE TERM OF THE LOAN. The bit in bold in the part im interest in. If I fixed tomorrow for 1 year, should the bank offer me a tracker rate when that fixed term comes to an end?
From a legal point of view it depends on the contents of the Mortgage form of Authorisation in Oct 2007.
But for sure there is ambiguity, the original contract states what the rate will be for the term of the loan. If they didn't make it clear when you signed the Mortgage form of Authorisation in Oct 2007 that you could not go back to your tracker margin then, in my view this is a breach of the consumer protection code.
I would get Padraig Kissane, to fight this through the FSPO for you.
I can't see that the MFA states what the interest rate will be after the fixed period expires.
It does state the following at point 5.
"5. Save as set out in this Form of Authorisation, all the terms and conditions applicable to the Loan remain unchanged"
In my view the condition "FOR THE TERM OF THE LOAN" in your original agreement still stands.
I think you have a very strong case.
It also goes to show that the central bank is not on top of this, as Bank of Ireland believe that they have already found all impacted customers, and are not currently being challenged by the CB.
Please do keep us informed. I do believe that Padraig Kissane will get this tracker restored, I would not go to the FSO on your own.
Edit - seems they say that they can offer alternatives at end of fixed period .
However, in the original document its states that in absence of choosing another fixed rate your rate will move to 4.25% (rate at the time) variable which is ecb + 1.25%
Then in the document sent to you at the end of the fixed rate period it states that the rate you will rollover to is the standard variable rate.
So the second document is wrong and this is where I'd be looking for a correction to be made.
Btw a variable rate of 5.34% apr probably equates to a headline rate of 5.25%
It should as then the default rate in the original fixed rate document should then be applied.Will that correction benefit my case?
It should as then the default rate in the original fixed rate document should then be applied.
Why a default rate? In 2007 I choose the standard variable rate. Sorry for the questions I'm just trying to get this clear in my head .