Bank appeals ombudsman’s ruling on tracker mortgage

A MORTGAGE lender has asked the High Court to overturn a decision of the Financial Services Ombudsman requiring it to allow a couple to revert to a tracker mortgage for the remainder of their 35-year mortgage.

The ombudsman made the order against Irish Life and Permanent after finding the lender should have made clear, in writing, to the couple they would lose their right to revert to a tracker mortgage if they opted out of their fixed-rate term early.

The couple, who changed from their fixed-rate term to a variable rate in January 2009 after one of them had become unemployed, had complained to the ombudsman that this was not clearly explained to them by Irish Life and Permanent, trading as Permanent TSB.