How did people actually "lose" their tracker mortgages?

Confused83

Registered User
Messages
14
Can I ask for people who's contract didnt clearly start tracker what it did say? I was under the impression the contract had to specify tracker as an option after the end of the fixed rate period.
 

john_mcm

Registered User
Messages
13
In my case I took out my mortgage on a tracker rate with Ulster Bank in early 2007. I fixed later that year because of rising interest rates for 2 years. Came out of the fixed rate in 2009 and trackers had been withdrawn from the market so the bank would not give me the tracker back. I reverted to the standard variable rate. As far as I am aware it does not state in my contract that the tracker rate was or was not for the life of the loan or that any changes I make would alter the terms and conditions. The fixed rate letter I signed stated that on expiry of the fixed rate the "Ulster Bank Home Loan Rate shall apply as originally accepted by you in your letter of offer". It did not specifically say this was a tracker or a variable rate. We are still fighting the bank to get the tracker back. We are saying that the above applies to the tracker as this was the only rate that was mentioned in our contract and the bank is saying that the above statement refers to a variable rate so we should not get the tracker back. The complaint is currently with the ombudsman with questions currently going back and forth with ourselves and the bank. Not sure what the outcome will be but hopefully it will fall on our side.
 

Dpdp01050842

Registered User
Messages
49
That’s actually a joke that Ulster are contesting that. IMO 100% the Ombudsman will side with you and give significant compensation. Unless the above is missing information that would make me think otherwise
 

john_mcm

Registered User
Messages
13
That’s actually a joke that Ulster are contesting that. IMO 100% the Ombudsman will side with you and give significant compensation. Unless the above is missing information that would make me think otherwise
Thank you. I hope you are right because it has been a nightmare trying to deal with the bank on anything. Definitely no info missing but for some reason Ulster Bank are digging in their heels. At this stage it has been so long that I just want an answer and move on whatever the outcome is because it has taken over our lives. Hopefully we are coming out the other side at some point in the near future.
 
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Brendan Burgess

Founder
Messages
38,675
"Ulster Bank Home Loan Rate shall apply as originally accepted by you in your letter of offer". It did not specifically say this was a tracker or a variable rate.
IMO 100% the Ombudsman will side with you
You cannot say that the Ombudsman will be 100% on this.

Based on the limited information given by MCM, you can express your opinion that he should get a tracker rate and I would agree with you. But it's about 50/50 and not 100%.

Is the Ulster Bank Home Loan Rate defined in the contract?
Does the contract say "If you fix your rate you will not be offered a tracker on expiry of the fixed rate but will go onto the Home loan Rate"?

The lenders have conceded about 40,000 cases. They presumably believe they have good grounds for not conceding the rest.

We would have to see Ulster's defence to mcm's complaint to make an assessment any higher than 50/50

I have been given a summary of a couple of cases where I could not believe the lenders' attitude. Than on reading the full story in the documentation, it turned out that the lender was fully justified in their position. And of course, I have seen other cases where the banks were obstinate and the Central Bank or the Appeals Panel or the Ombudsman forced them to change tack.

Brendan
 

john_mcm

Registered User
Messages
13
You cannot say that the Ombudsman will be 100% on this.

Based on the limited information given by MCM, you can express your opinion that he should get a tracker rate and I would agree with you. But it's about 50/50 and not 100%.

Is the Ulster Bank Home Loan Rate defined in the contract?
Does the contract say "If you fix your rate you will not be offered a tracker on expiry of the fixed rate but will go onto the Home loan Rate"?

The lenders have conceded about 40,000 cases. They presumably believe they have good grounds for not conceding the rest.

We would have to see Ulster's defence to mcm's complaint to make an assessment any higher than 50/50

I have been given a summary of a couple of cases where I could not believe the lenders' attitude. Than on reading the full story in the documentation, it turned out that the lender was fully justified in their position. And of course, I have seen other cases where the banks were obstinate and the Central Bank or the Appeals Panel or the Ombudsman forced them to change tack.

Brendan
Hi Brendan,

I agree that the outcome is not 100% guaranteed and in fairness to @Dpdp01050842 did mention that the information I supplied may be missing some information which may impact his opinion. I also wasn't taking anything said as fact.

Regarding the banks defence they are basically saying that we were aware of what rates would apply throughout the customer journey and are also relying on condition 14c subsection ii of the banks mortgage terms and conditions that states that what will apply on expiry of a fixed rate is the banks SVR.

We are disputing this based on the fact that our original contract and letter of offer only mentions the tracker rate we originally signed the contract on and nothing else, the banks mortgage advisor at the time told me that the fixed rate would revert to the tracker from our original contract ( I know that that isn't worth much) and also the condition they are referring to relates to new mortgages taken out on a fixed rate and does not mention anything about existing tracker rate mortgages and finally the fixed rate authority we signed in 2007 only states that on expiry of said fixed rate the "Ulster Bank Home Loan Rate Shall Apply As Originally Accepted By You In Your Letter Of Offer" The only rate mentioned in our original letter of offer is the tracker rate ECB + 0.75%. It does not define anywhere else in the contract or their terms and Conditions that the Ulster Bank Home Rate is anything else. The bank has also acknowledged that the fixed rate authority had an error in it directing us to an unrelated term and condition 2 and have offered €350 by way of compensation for this error. We believe the bank is trying to apply their narrative to the documents rather than what really happened. I am not sure if that clarifies anything further or not but at the moment questions are going back and forth between us through the ombudsman so we will see what the outcome is soon enough.
 

Bikini Widow

Frequent Poster
Messages
78
One overlooked element of this scandal was the influence of the media at the time.

One of the triggers for me looking to fix back then was the repeated message from financial observers at the time that fixing was the best option. I was still accountable for my actions but I clearly recall, media advice at the time having a clear influence on myself at least. Not sure about others but to answer OP question I think certain quarters of the media played a part in influencing people like myself who were tight on money and looking to find any sort of stability.

best wishes,
BW
 

B26354

Frequent Poster
Messages
259
One overlooked element of this scandal was the influence of the media at the time.

One of the triggers for me looking to fix back then was the repeated message from financial observers at the time that fixing was the best option. I was still accountable for my actions but I clearly recall, media advice at the time having a clear influence on myself at least. Not sure about others but to answer OP question I think certain quarters of the media played a part in influencing people like myself who were tight on money and looking to find any sort of stability.

best wishes,
BW
That push was not just coming from the media; EBS have admitted that pre economic crash they tried to “steer” customers towards taking fixed rates.
 

Thirsty

Frequent Poster
Messages
2,111
"..when that fixed rate finished, I should have been offered the tracker rate."

Same thing happened with me.

Have posted this before, but a credit to AAM is due here also.

When trying to figure out best options from the list that was sent to me at the end of the fixed rate period (which list did not mention trackers); a poster on AAM recommended contacting bank and asking for their 'best rate'.

This turned out to be 0.8% above ECB, and thats the rate I got.

Best phone call I ever made.
 
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