Ombudsman must look at mortgage claim again

The Financial Services Ombudsman must reconsider a couple’s complaint that Danske Bank was not entitled to increase to 4% the variable interest rate on their mortgages at the same time the ECB interest rate was falling to almost zero, following a High Court ruling.

Kenneth and Donna Millar claimed the rate hikes occurred from 2011 despite the ECB rate falling dramatically in the period and this amounted to breach of their mortgage contracts and also contradicted statements on the bank’s own website.

Upholding their appeal against the ombudsman’s rejection of their complaint, Mr Justice Gerard Hogan found “serious and significant” error in how the ombudsman had interpreted a key clause in contract documents concerning the bank’s entitlement to increase the variable interest rate payable on the mortgage accounts.