Ulster First Active not Reoffered Tracker on Expiry of Fixed Term

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smithers

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Hi,

It has been on my mind for a while about the Tracker mortgage I lost as a result of fixing my First Active Mortgage in October 2006 for 2 years. I had a Tracker with the condition " as the loan to value is less than equal to 60% but greater than 40% the rate of interest will never be higher than the Europen Central Bank (ECB) + .95%"

This mortgage was taken out in 2005. In the letter of authority (1 page) in October 2006 it states "On expiry of the fixed term i we may be prior notice in writer to the company opt to choose a further fixed rate of interest for a certain period, if such an option is made available by the company. Where such an option is not available, i we fail to exercise the option if available the interest rate applicable will be the rate of interest which may be increased or reduced by the company from time to time and at any time in line with market interest rates (the variable rate)"

In sept 2008 i was sent a letter stating my fixed rate was coming to an end and i would have the option of going to a tracker, fixed or variable.

In oct 2008 the only options were fixed or standard variable, i rang them but as they had stopped offering trackers the month before i would not be offered one.

I wish i had of gone to the ombudsman at the time as i am now paying 300.00 more than if i had got my tracker back. Do i have a case to go to the ombudsman now? The implications of switching were never really made clear to me.

Thanks
 
In 2008 you would have had the option of switching your mortgage to another provider who could offer you a tracker, you choose to stay with your original provider.

You would have had no complaint to take to the Ombudsman, your provider simply withdrew the tracker option to all customers not just you.
 
Unfortunately switching was not an option because none of the banks were still offering trackers that late in 2008 and I had lost my job and was still on probation in a new job even if they were. My understanding was I would get my tracker back of I had of known I would have broken the fixed term. Hindsight! Isn't it great!
 
Hi smithers
i do not agree with Palerider's view because if i did no one should/would get their tracker rates back. The banks are not right on this issue and if they were so correct in the first place how come not one lender has ever explained to any customer that i have spoken to of the consequesces of fixing their mortgage. If you were posted a letter in Sept outlining the tracker rate and the margin in the letter was the same as the loan offer margin then i believe you may well have a case. Hope this helps (alot of this is opinion but the terms and conditions are was are important if i can help let me know) Good luck Padraic
 
Thanks Padraig, the letter in the september which i no longer have stated that my fixed term is coming to an end and that i will be able to pick either a tracker or a variable when the options letter arrives. It was not an options letter.

Is there any case or do I not have a leg to stand on? They should have explicitly stated that I would loose my tracker forever when i wanted to fix.

Thanks,
 
First Active withdrew their tracker offering sometime during Sep through October 2008 according to Smithers, Padkiss seems to think that you would if you insisted have got a special arrangement and as such would have been provided with a tracker mortgage although they had withdrawn from that structure. I'd be interested in the basis for this thinking.

I don't read this that you lost your tracker forever because you fixed, I read this as the the option to place on a tracker was no longer available, am I incorrect ?
 
The option to place me on a tracker was no longer available but lots of people have fixed and gone back on their trackers even up until recently. I guess when i fixed it should have been made clear you will NEVER get a tracker back again. Many banks offered a second price promise and other people with First Active that fixed automatically went back to the tracker even after they were no longer offering them. i assumed i would be able to to. This was a costly mistake costly us over 5000 a year, i wish i never signed it
 
What was available to new customers when your fixed rate expired in 2008 is irrelevant.

When you fixed in 2006, they did not make it clear to you that you were going to lose your tracker by fixing. I think that you have a good case for a complaint to the Ombudsman. The basis of your complaint is that they should have put you back on a tracker in October 2008. They will argue that they did make it clear that you would lose your tracker. The Ombudsman will decide. Unfortunately, their decisions are unpredictable. You could lose this and someone else with the same wording could win. But it costs nothing to complain.

It is very important that you are complaining about what happened in October 2008, as that is within the 6 year time limit. Don't complain about what happened in 2006 as that would be outside the time limit.
 
This is confusing. FA did not send out two letters when fixed rates were due to mature, you got one with the options available and all fixed rate loans that either started as tracker or started as fixed maturing to tracker as per loan offer should have done so automatically.

If no other option was ticked on your options letter the default was to tracker if that was what your original offer said. FA finished offering trackers to new customers from approx July 2008.

The difficulty with a lot of these was the options if memory serves me correctly is that the options letter just referred to the other options available such as fixed rates, if you did nothing the default was tracker (assuming that was what your original loan offer specified). If you picked another fixed then at that stage there was nothing in the fixed rate amendments that took away your tracker, however it does appear that a lot of these accounts were being changed especially since the amalgamation with UB and were not automatically reverting back to tracker.

I would definitely query this and make a complaint if I was you.

Have a read of this, it's pretty long but read Lucybousy's postings in particular [broken link removed]
 
Smithers;
Am I correct
1. Sept 2008 you believed you could move back to tracker as per your contract.
2. Oct 2008 when you phoned 1st Active , they said they had discontinued trackers.
3. From Media you now think 1st Active ill-advised you.
4. You wish to rely on your contract.
Normally most changes affect new customers but current customers can have a reasonable expectation of offer (in this case tracker) continuing for some time.
I would be very inclined to put that to Ombudsman.
Am I missing something ?
 
No that is exactly it thanks

Also Many thanks Brendan for the advice re 6 years.

I am going to send a complaint to Ulster Bank this week and i will then go to the ombudsman.
 
Not how it works unfortunately. You need to get a final response letter from First Active before you can go to the the obmudsman. So at least 30 days dealing with the Bank first.
 
Peteb, I see you had to go to ombudsman. Delighted you got tracker back. How long did process take? We got letter few weeks ago saying we would get letter in 6-8 weeks confirming investigation had started properly. Do you mind me asking why the ombudsman stated that they were upholding your complaint? I'm so frustrated today by all this!! How are the banks getting away with this? It's such a disgrace.
 
Months and months! Because it wasn't clear from the general conditions that the rate they talked about wasnt a tracker. That's just me paraphrasing - I'm usually a little better than that. I'd need to dig out the response letter. If you want to PM me your email address I have no problem sending you on a copy of the letter.
 
peteb said:
Months and months! Because it wasn't clear from the general conditions that the rate they talked about wasnt a tracker. That's just me paraphrasing - I'm usually a little better than that. I'd need to dig out the response letter. If you want to PM me your email address I have no problem sending you on a copy of the letter.
Click to expand...

Peteb can you not just scan the letter on here for everybody, take out the indentifing features is all you need to do.
 
i told brendan I'd do a key post on it. I just haven't managed to find the 20 mins it takes. New baby at home.
 
Hi
Just a quick question please. does anyone know if a mortgage was taken out in 2000 should there be any reason to be on a tracker rate now? or were trackers only relating to mortgages taken out at a later date?
thanks for your help
 
I think trackers first became known to the Irish market in 1999 but I have no idea how widely available they were then. We took out one in 2005...
 
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