In any such case there was an additional written communication that could be relied on - the infamous flyer - which gave a specific margin that would be usedYes Brendan but KBC have returned trackers to people with no mention of trackers in their contracts . They have returned trackers where the contract said fixed rate to roll to "prevailing rate" . Therefore the prevailing rate must have been a tracker rate ?
In any such case there was an additional written communication that could be relied on - the infamous flyer - which gave a specific margin that would be used
flyer aside, if a borrowers contract says you are on a fixed rate for x number of years after which you will roll onto the prevailing rate … and kbc now agree these people with these contractual terms should have been on a tracker rate…
HI Darn40 were you returned to a tracker on the account that had that wording?
Peemac, would the handbook that came with your application be part of your contract?think it all goes back to having something in writing that has a % above ecb refi rate on it.
The only argum
You are right Brendan they havent explicitly agreed that. I am just looking at all angles for arguments sake.Where has KBC agreed that?
The "prevailing" argument won't stand up.
Prevailing means current
Considering that variable rates by their nature change, to say that a prevailing variable rate is one set in stone at the
time of start of fixed rate simply won't work
Also the wording is "at the end of the fixed rate period "
I know, I used that argument and it was completely rejected. Even when I got my own legal advice,, I was told it wasn't an argument to use
I think it all goes back to having something in writing that has a % above ecb refi rate on it.
The only argument left in kbc imo is the dating of the flyer.
The redressed borrowers were to roll to the prevailing rate after a fixed period. Kbc have restored them to trackers. Therefore it follows that the prevailing rate was a tracker rate.
Otherwise you are saying the loan offer wording is irrelevant and superseded by the flyer yet rely on the loan offer elsewhere.
Are you saying the prevailing rate wording that we assume is in their loan offers is now irrelevant to the flyer cohort OR are you saying that the prevailing rate for the flyer cohort is a tracker rate?
These related to new mortgage applications in the period November 2006 to February 2008 that drew down their mortgage on a fixed rate with a roll off to a standard variable rate.
They say they were on an SVR product when clearly they were on a tracker product on your reading of the situation and indeed correctly
The problem with the booklet text is it says "when the fixed rate comes to an end, you can switch to another fixed rate or a variable rate or a tracker rate"
So those options only come into force at the last day of your fixed rate. But as trackers were gone, this option would not be valid
It also shows that there was a difference between a variable rate and a tracker rate .
It will be nigh on impossible to convince fso or anyone else of entitlement to a tracker unless there is something somewhere that provides a specific margin over ecb/refi rate.
And whilst the ombudsman has changed since my case, they still have to look at the evidence and this prevailing rate argument just won't wash.
Thanks for your reply peemac to the wording on the booklet. But what I cannot understand is, KBC did say in black and white that the choice was yours what product you wanted after expiry of your fixed rate and that included a tracker rate. KBC can not just say that the product was not available anymore. Did the wording in the booklet not influence peoples decision? If people go to the Ombudsman with the booklet that came with their application with this wording, Would they not have some sort of a case?The problem with the booklet text is it says "when the fixed rate comes to an end, you can switch to another fixed rate or a variable rate or a tracker rate"
So those options only come into force at the last day of your fixed rate. But as trackers were gone, this option would not be valid
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