Ulster Should I take Bank's offer of ECB + 2.15%?

Uno

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17
In 2006 when we took out a mortgage with FA now UB, we fixed for 2yrs (no option of a tracker then to us)

In 2008 we recieving a letter from FA saying that our mortgage would revert back to a variable rate of x, if we did nothing about it.
We were also given fixed rate options at the time and so we fixed our mortgage for 5 years at a high interest rate.

Since then I have look back over our original loan offer from 2006 and it says that our mortgage would revert to ECB + 1.15% after 2yr fixed rate!

We were not made aware of this option in 2008 and we hadn't read our loan offer.
I have quered this with the bank and they have sent me a letter saying that the ecb +1.15% was superseded because we fixed for 5 years. The letter also said that after these 5yrs are up, the mortgage will revert to ecb +2.15%. Should I take this?
I have asked the bank to clarify why I am being offered ecb +2.15% now? I feel we were not given correct information in 2008 about our rate options. Any advise or have you been in a similar situation
 

Uno

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"the current fixed rate of x on your mortgage will expire and you may at that time choose to transfer you mortgage to either a variable rate or a new fixed rater term."
"If you choose a variable rate you do not need to contact us as your loan will automatically revert to a variable reate. The current variable rate is x.."
 

Brendan Burgess

Founder
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Hi Uno

Let's start with 2006. It said that you would be entitled to a tracker after the fixed rate period was up.

They should have offered you this when the fixed period was up.

They didn't, so they should now put you back on the tracker from 2008 and give you a full refund of the overcharged amount.


Can you please reproduce the actual wording of your 2006 loan offer. Did they say anything such as "You will have an option of a tracker but if you don't exercise it, we will put you on the SVR by default". ?
 

Uno

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The following is the wording from 2006 loan offer
"The rate of interest applicable to this loan will be fixed for the fixed rate term specified in the loan offer letter, The interest rate will revert to the standard tracker rate of ECB plus 1.15 after the expiry of your fixed rate period."
 

Uno

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The letter from the bank in 2008 before we signed the 5yr fixed had no mention of reverting to tracker as the 2006 loan offer states. The 2008 letter said it would revert to a current variable rate...
 

Brendan Burgess

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Uno

It could not be any clearer than that. There is nothing vague here. There is no obligation to you to opt for this.

You should simply have been put on tracker rate in 2008. It is annoying to think that they are even disputing this. It is annoying that they had not themselves identified you on their own initiative and put you back on that rate.

Brendan
 

Uno

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Brendan,

Do you think I have a warrant to say to the bank I want to go onto a tracker of ecb +1.15% and ask for refund on the overcharging for the last 5yrs?
The bank are currently handling my query at present over the account and they said they will responsd within 8 weeks.

What if they offer me the original tracker of ecb +1.15% and don't offer any compensation - what should I do then?
 

44brendan

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2,539
You have a valid claim here against the Bank. You (or your representitive) should immediately write to the Bank quoting the circumstances as stated above and demanding a refund of all interest paid over the ECB +1.15% rate since expiry of the initial fixed rate agreement. On the basis of the circumstances outlined by you, the Bank are fully liable to pay you back these funds and you need to ensure that this is promptly addressed by them. Advise them that if they fail to do this, within a defined timeframe (say 1 month) you will make a report to the Ombudsman.
 

stephenbyrne

Registered User
Messages
10
You definitely have a case here. They tried this stunt with me but unlike luckily I resolved the situation back in 2007 when the fixed period was up. In fact I even got them down to a 0.9 rate as this was what they were advertising at the time. Threaten with legal action / financial ombudsman and you'll get your 1.15 rate. I know somebody in the exact same situation who got it.
 

Uno

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Unfortunately after months of going back and forward to the bank with letters and replies, UB is refusing to admit any error with regard to our complaint so this case is heading to the Ombudsman.
Anyone know how long the ombudsman's office takes to address mortgage cases? What is the likehood of success with ombudsman cases?
 

bleary

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351
I heard an interview with the ombudsman recently where they were voicing their frustrations with certain banks, they basically implied that some banks were showing a lack of good faith in their handling of cases. They were bringing the same types of cases where they were clrearly in the wrong all the way through the same process.
So stay the course and dont give up
 

Bronte

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13,461
Bleary is absulutely correct and Ulster bank in particular let all cases go to the Ombudsman. They do not care if they are in the wrong, they do not care that they know you are stressed about this, they do not care about anything only playing a numbers game with the Ombudsman's office.

Uno it's a long battle, just keep going and you'll get there eventually. Best of luck.
 

PaddyW

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1,270
DO NOT settle for anything other than getting your ECB + 1.15% rate and a full refund of all overcharged interest. You will get it, good luck!
 

Orga

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361
Brendan said it succinctly: there is no ambiguity here. You have a clear entitlement, based on the documentation from which you quoted.

The Ombudsman is a mediation and dispute resolution service and based on a range of cases in which I have been involved I would seek the bank's final response letter, then, when you have the final response letter you should seek all documentation relating to you and this case under data protection legislation and then turn everything over to your solicitor. I would not take this to the Ombudsman, just a personal view based on my experience.
 
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Uno

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Good News - we got our tracker restored after FSO ruling. We got a little compensation and the tracker was back dated to Aug 2013 not Aug 2008 as we had wished. In principle this was a good result and we are happy that the tracker was restored after months of UB fighting the case. It was good to get the tracker restored but a little disappointed that FSO didn't back dated to when the problem of miscommunication and misinformation arose back in 2008. UB seem to show total disregard for the office of the ombudsman by making all these trackers cases go through the office rather than seeking to resolve it with the customer.
 

Brendan Burgess

Founder
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37,955
Uno

Thanks for the update.

That is great news. Well done for sticking with it and refusing their offer.

It's amazing that the FSO did not give it back to you from the date you were entitled to.

It took you two years to get this sorted. Astonishing.

Brendan
 

PadKiss

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215
Hi UNO delighted you got your tracker back but and it is a big huge but, you have not had the matter resolved to a satisfactory conclusion. It is a disgrace that the FSO does not even regard the fact that you weren't offered the tracker margin in 2008. Contract Law was broken in 2008 and it is from this date it should have been resolved. I am assuming the line in the finding went along the lines of "as you had fixed for a period of 5 years blah blah blah........" when you would not have done this if your margin had been offered to you. Inconsistent is how I would describe this as I have had the very same case but insisted on the rate being backdated fully. to others keep insisting on what is right Padraic
 

Dermot

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I would agree with PadKiss that "Contract Law was broken in 2008" Now that the FSO has ruled unfavourably in my view why could OP not get a solicitor for breach of Contract Law. Is their a legal impediment to taking this route?.
 
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