Hi,
My situation is very similar to Core123 and meepman. I drew down on a “2 Year Discount Tracker (ECB + MAX 0.99%) Home Loan” in May 2007.
The variance in the documentation is interesting, for comparison, the relevant sections in my contract documents read:
LETTER OF APPROVAL – PARTICULARS OF MORTGAGE LOAN:
Special Condition E: On expiry of the discount period the applicant will have the option of switching to a fixed rate (if available) or to the tracker mortgage rate available, at the time of expiry of the discount period, to the amount of the loan originally advanced.
EUROPEAN STANDARDISED INFORMATION SHEET:
Page 1: On expiry of the Discount Period you may exercise an option to contract for a fixed rate period (if available) or move to a Tracker Mortgage Rate, applicable at the time of expiry, to the amount of the loan originally advanced.
In May 2009 I received a letter from PTSB that opened with “I am writing to remind you that the current rate option on your mortgage account will end on 22-May-2009”.
The same rate options as posted in other threads were available for selection. The Tracker Variable Rate was offered at 3.5% and of course they also had their then “tempting” LTV Variable Rate at 3.4%. I remained on the Tracker rate.
The info asterisk associated with the Tracker Variable reads: The interest rate that applies to this Tracker Mortgage Loan will never be more than 2.25% over the European Central Bank Refinancing Rate.
I have not pursued this with anyone as of yet. I suppose I’m left wondering how PTSB calculated the rate after exiting the discount period (discounted from what ). Are they obliged to answer such a question?