we are very upset at the tone of the letters coming - could we loose our home over this? Thank you.
Unfortunately the tone is set by the Central Bank. The bank must warn you that if you do not pay, you are at risk of losing your home. But as the others have pointed out, for such small arrears there is little chance of legal action, much less repossession.
But you must take it seriously. The banks are selling on their mortgages to vulture funds. I think that this is unlikely to happen to you, but you should clear your arrears and keep your mortgage on track. A tracker mortgage is very valuable.
You should also consider your credit record. Missing payments will prevent you getting credit elsewhere.
I think that setting out your case in a letter should be fine, but stick to that.
Do not submit an SFS.
But take every phone call. Take the name of the person to whom you are speaking and note the content of the phone call.
Refusing to take calls is never a good idea.
You may need to restructure this mortgage in the future. They are not going to deal with someone who refused to take their calls.
And in the very unlikely event that they do take court action it will not look good that you refused calls. On the other hand, it will look very good for you if they phoned you repeatedly and you took every call and were polite.
Brendan