Key Post Taking your NIB case to the Ombudsman

Brendan Burgess

The Financial Services Ombudsman has ordered NIB to put at least 5 cases of buy to let mortgages back on the home loan rate. He has rejected at least two claims.

This thread is to help new complainants on how to put together a case.

Do you have a case?
This applies to buy to let and holiday homes only.
Check your original loan offer. If it said you are on the "Variable Rate Home Loan", you have the basis for a complaint.
If there is no mention of the Variable Rate Home Loan, you have no case.

In February 2009, they wrote to such customers and told them that they were changing the account name to a "Variable Investment Mortgage"

It helps if you got and kept this letter.

Why did you choose NIB?
Other lenders charged more for their investment properties. NIB charged the same rate for home loans and for investment properties which is why most people chose them to borrow from. If you chose NIB because you were relying on this factor, you have a very good case indeed.

How much can you expect in compensation?
You would have paid a higher rate on your investment mortgage from April 2009 to November 2011. In November 2011, they raised the variable home loan rate by 1%, so there is no difference anymore.

[Can anyone give a good example here of how much was overcharged?]

But you also want to be put back on the Variable Rate Home Loan
While the rates are the same at the moment, there is nothing to stop NIB from pushing up the Variable Investment Mortgage rate at some time in the future. It's important to get this fixed now. If you wait until they push up the rates, NIB will claim that the Ombudsman can't hear the complaint as it's over 6 years old.

Stage 1 - Complain directly to National Irish Bank
Write a nice letter to National Irish Bank.
Point out that you chose them because the Variable Rate Home Loan was the rate for the Investment Mortgage.
You note that this was changed in 2009.
You would like a refund
You would like them to confirm in writing that they will apply the Variable Rate Home Loan to you in future.

Assuming they reject your claim...

Stage 2 - Request your file under the Data Protection Act



Registered User
Hi Brendan,

Why are you requesting the file, are you looking for internal communication on your case.

Just curious.

I was got a refund of about 800 euro (overcharged) between Feb and November on 220K loan

It is important to make a strong case and to reply in detail to any correspondence from the ombudsman's office. In particular it is important to strongly refute any arguments that the NIB may use. They have been using different arguments in the different cases. It is important not to be complacent.

Also I used the "Why choose NIB" argument in the first post.