Judge queries bank’s stance on mortgage rate hikes

The Financial Services Ombudsman has been told by the High Court to look again at Danske Bank’s decision to hike its variable interest mortgage rates to more than 4% when ECB rates had plunged to almost zero.

The ombudsman had thrown out a complaint by a couple in north Dublin that the bank had acted wrongly in increasing interest rates on six buy-to-let investment mortgages and the couple’s family home mortgage at a time when rates had fallen to historically low levels.

Mr Justice Gerard Hogan yesterday ruled as ambiguous a clause in Danske Bank’s terms and conditions which stated that rates of interest would be altered in response to market conditions.