Hi,
I recently reviewed historic correspondence from PTSB in respect of my mortgage. The relevant Special Condition on the Letter of Approval from mid 08 stated:
"On expiry of the of the 12 month discount period the then prevailing PTSB rate will apply".
11 months later a letter was received stating: "the current rate option on your mortgage is due to expire.."
the letter included a whole host of rate options including fixed rates, SVR and a tracker with 3.25% margin. The tracker was about 0.6% higher than the SVR and I (stupidly) went with the lower SVR. In good faith, I took it that a rate option had indeed expired.
Quite aside from the ethics/cpc issues associated with this ramped up Tracker Rate in 09 relative to what the prevailing tracker rate was in mid 08... the big issue in my eyes is the wording of the rate options letter when it stated "your current rate option is due to expire".
Quite simply, on the original contract it never stated anything about rate options. It stated the then prevailing tracker rate will apply on expiry of the 12 month discount.
I am of a firm belief that this options letter and the language used was a deliberate attempt to move people off tracker rates. I have highlighted the issue in writing with FSO and Central Bank. Interested if others have the same wording on the special condition and thereafter on the "options letter". I really feel if this happened to others it needs to be raised.
I recently reviewed historic correspondence from PTSB in respect of my mortgage. The relevant Special Condition on the Letter of Approval from mid 08 stated:
"On expiry of the of the 12 month discount period the then prevailing PTSB rate will apply".
11 months later a letter was received stating: "the current rate option on your mortgage is due to expire.."
the letter included a whole host of rate options including fixed rates, SVR and a tracker with 3.25% margin. The tracker was about 0.6% higher than the SVR and I (stupidly) went with the lower SVR. In good faith, I took it that a rate option had indeed expired.
Quite aside from the ethics/cpc issues associated with this ramped up Tracker Rate in 09 relative to what the prevailing tracker rate was in mid 08... the big issue in my eyes is the wording of the rate options letter when it stated "your current rate option is due to expire".
Quite simply, on the original contract it never stated anything about rate options. It stated the then prevailing tracker rate will apply on expiry of the 12 month discount.
I am of a firm belief that this options letter and the language used was a deliberate attempt to move people off tracker rates. I have highlighted the issue in writing with FSO and Central Bank. Interested if others have the same wording on the special condition and thereafter on the "options letter". I really feel if this happened to others it needs to be raised.