But as trackers were gone, this option would not be valid
This is not correct.
AIB were in the same position. Borrowers had the following clause in their contract:
“At the end of any fixed interest rate period, the customer may choose between:
a) A further fixed interest rate period, or
b) Conversion to a variable interest rate Mortgage Loan, or
c) Conversions to a tracker interest rate Mortgage Loan,
at the bank’s then prevailing rates appropriate to the Mortgage Loan.”
AIB stopped offering trackers to new mortgage applicants.
They also stopped offering them to fixed rate customers who had the following clause.
However, the Ombudsman, Bill Prasifka, said that they must offer a tracker to these customers.
But then he said that they could determine 5 years later what the rate would have been. So AIB said it would have been 7%, so the borrower was deemed not impacted.
This is the core of the AIB prevailing rate case.
AIB were wrong to not offer such borrowers the prevailing rate. That is now agreed by everyone including AIB
But we are arguing that the prevailing rate was still in existence. It was ECB +1.5% which prevailed until they changed it in December 2013.