The court heard the couple took out a mortgage for €395,000 with the lender in 2007 with the interest rate fixed for the first three years, after which the rate would revert to a tracker rate following ECB rates.
In January 2009, they contacted Permanent TSB’s Lucan branch concerning whether there was an exit fee for the fixed-rate mortgage. They said they were told there was “no penalty” and the couple then switched rates.
The ombudsman upheld their complaint in February last and the lender has challenged that decision in proceedings which opened yesterday before Mr Justice Michael White. Permanent TSB claims there were “significant errors” in the ombudsman’s findings, including his finding that the bank had a “fiduciary relationship” with the couple.