PTSB PTSB 1 year discounted tracker - they have put me back on the right rate

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Deck77

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Hi

I had 1 year discount tracker <80% ltv mortgage taken out 1 Aug 2008 with PTSB. We had a discounted rate of 1.05 above the ECB rate. When the discount year ended they put me on 2.25 above the ECB rate. I quired this with them at the time, but they insisted they were right. I felt it should be 1.25 above ECB rate, I left it at that. In 2015 I enquired again about the rate but again I was told no, it was correct at 2.25 above the ECB rate. I rang on Tuesday last again got speaking to 2 people said they look at it. I got a letter on Friday apologising about the error they have reduced my rate to 1.25 above the ECB rate and they reviewing my account to see how much I over paid and what compensation I'm due. So ring them and fight with them. Best of luck

Declan
 
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Thomas

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Deck77 did you have the prevailing rate phrase in your docs on expiry of the discounted tracker period or was 1.25% specified as the rate you would revert to at end of the period?
 

Stitcher

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Deck77,

That's great news for you , that they put you back on the undiscounted rate you thought you had. It's good news too for those of us who chose the cheaper variable option then switched bank when variable rates rose.

yes, it would be good to see the phrase in the contract about what would happen after the discount period.

You are still with ptsb but I wonder how many who moved to the variable have switched ?

Am finally beginning to think that we too might succeed!!
 

Deck77

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Our loan doc had "prevalling rate" on it. When we were taking out mortgage thru broker Cornmaket, I had specifically asked what was the rate going to be above ECB rate when I came off the discounted rate. When i was speaking to person in PTSB he could see in emails where I had asked the question. This might be part of reason that I got the correct rate now.

Hope this helps.

Declan
 
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Brendan Burgess

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That is great news indeed.

The contract was clear in this case "You will go onto the prevailing tracker rate". And the FSO has dismissed complaints on this basis.

But that was not consistent with the name of the product "The one year discounted tracker". What was it discounted from and that should be the rate applied.

Brendan
 

core123

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Hi Declan,

I am very interested in this. When I first got my mortgage in 2007 I was put on a 1 year introductory discounted rate of .99% above the ECB rate. On the expiry of this I was offered a number of variable and fixed rates or a Tracker rate of ECB + 2.25. Even though that was the best rate they were offering I was very upset by how it jumped from ECB +.99 to ECB +2.25. My contract like yours said that "You will go onto the prevailing tracker rate". I would love to know why now this was done for you?

Should if I was to call them mention that I saw this very scenario on this site? Would it help at all I wonder?

Regards

Ian
 

core123

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The only difference I do see was that mine was actually a 2 year discounted rate which expired in 2009 not a 1 year rate as I first pointed out although your's also expired in 2009 as well.
 

Stitcher

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Core, was your product called a discounted tracker? Also, if it was, and you look at the example of repayments in your contract over the full term you will see what they were discounting it from (most were 0.2% off). Are you still with ptsb? Worth a call to see what they say now.
Good luck.
 

core123

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Hi Stitcher,

I'm looking at the loan type and it is called a 2 year discount tracker (ECB + Max .99%) Home loan. It says in the Special conditions that

"at the expiry of the discount period, to the amount of the loan originally advanced , the interest rate rate will switch to the tracker mortgage rate applicable at the time of expiryof the discount rate"

The expiry date was in 2009 and then I was put on ECB + 2.25% or the option of variable or fixed rates which were extremly unattractive.

Regards

Ian
 

joe351980

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Seems to be different wording for fairly standard contracts. Prevailing, Applicable, and Current. Any taughts?
 

core123

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Hi Joe,

I just noticed that now that you mention it. Mine says Applicable whereas Declan had Prevailing. Not sure what the difference here is and thus maybe that is why I won't get the 1.25 rate that he got but still no harm in me contacting them. If I hear anything back good or bad I will let you know.

Ian
 

meepman

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Hi,
I am in a similar situation. Back in february 2008 I was on the 1 year discounted tracker rate of 0.75% above ECB. After the year I was offered a tracker rate of 2.25% above ECB. This was the best option I was offered compared to the variable and the fixed options.

This statement was in the european standardised information sheet.
The interest rate applicable to this loan is a variable rate loan but it will not exceed 0.75% over the ECB rate for the first 12 months(the discount period). On expiry of the discount period, the interest rate applicable to the loan will be the then PTSB tracker mortgage rate.

This statement was in the letter of approval special conditions.
The interest rate applicable to this tracker loan maybe varied by PTSB provided it will not exceed 0.75% over the ECB refinancing rate for the first 12 months(the discount period). On expiry of the discount period, the interest rate will be the then PTSB tracker mortgage rate

Do I have a case here and should I be calling PTSB??
 

joe351980

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You could argue where did they get their discount rate, but it does state the 'then PTSB tracker rate' so I wouldn't be optimistic
 

PFS7979

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There is a very important issue being missed here in my opinion.

Namely: The Special Condition relating to interest rate stated very definatively that on expiry of the discounted period," you will revert to the then prevailing PTSB tracker rate".

PTSB then wrote to mortgage holders c 11 months after drawdown stating that "the current rate option was due to expire" and proceeded to offer a host of options including fixed/variable/and a ramped up tracker margin.

Very importantly, the comment in the letter attaching to these options was misleading. It was inconsistent with the special condition on interest rate as THERE WAS NEVER ANY REFERENCE TO OPTIONS ON THE INTEREST RATE REFERENCED IN THE SPECIAL CONDITION. the special condition simply stated that after the discount period "the then prevailing tracker rate will apply".

The net result was that very many people moved off their tracker on the basis of misleading language in this "options letter".

I have written to FSO and CBI highlighting this particular aspect. Regardless of cover letters or information sheets that accompanied the Letter of Offer; it is the special condition that is the governing clause and it never made any reference to rate options.
 

Stitcher

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PFS, I agree. The two points are very valid: what was the rate discounted from, and why was an options letter sent out. Deck77, did you get an options letter? You mentioned that you went via a broker, I went directly to PTSB I wonder if that influence d whether or not a letter was sent?
 

meepman

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I went via broker and got the options letter a month before the discounted tracker rate expired.
 

PFS7979

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Meepman,
Did the special condition on your Letter of Offer refer to any rate options?

Did the Options letter state that "your current rate option will expire"?
 

meepman

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There were no rate options on the letter of offer only this

On expiry of the discount period, the interest rate will be the then PTSB tracker mortgage rate
 

PFS7979

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Then why did the letter state "your current rate option will expire".... in my view a deliberate and concerted effort to move people off their tracker...
 

meepman

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I agree, the tracker was 2.25% + ECB = 4.25% at the time. The variable was 4.05%. I decided to choose the tracker as was expecting the variable to increase. And it did. Still I got into some financial difficulties and am currently on a warehouse. If I had stayed on a much lower rate, this would not have happened. We are talking about E500 a month difference here.
 
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