Fri Sep 20 13:04:39 UTC 2024: ## Ulster Bank Wins Appeal: Borrowers Lose Right to Tracker Rates After Switching to Fixed Rates

**Dublin, Ireland** – In a significant legal victory for Ulster Bank, the Court of Appeal has overturned a High Court ruling that favored two borrowers seeking compensation for their denial of tracker mortgage rates. This decision could impact thousands of other borrowers who were not included in the industry-wide tracker redress scheme.

The original High Court ruling found that the borrowers, who had switched to a fixed-rate mortgage in 2007, were entitled to revert to their original tracker rate after the fixed-rate period ended. However, the Court of Appeal has ruled that the borrowers gave up their contractual right to a tracker rate when they agreed to the fixed-rate variation.

The court emphasized that the borrowers’ original mortgage contract did not guarantee a tracker rate after the fixed-rate period, and that the bank had discontinued offering tracker rates to new customers in 2008. The court also criticized the High Court for relying too heavily on the Financial Services and Pensions Ombudsman’s decision, arguing that it should have conducted its own analysis of the contractual documents.

This legal precedent could impact approximately 5,300 loan accounts. While the borrowers in this case were not part of the Central Bank’s tracker-mortgage redress scheme, the ombudsman had initially sided with them. However, the Court of Appeal’s decision could set a precedent for future cases, potentially leaving many borrowers without the option of reverting to tracker rates after fixed-rate periods expire.

Ulster Bank, which is currently in the process of exiting the Irish market, has faced heavy criticism over its handling of tracker mortgages. The bank was fined €38 million in 2021 for regulatory breaches related to its treatment of tracker mortgage customers.

The bank’s victory in this appeal marks a significant shift in the ongoing debate surrounding tracker mortgage rates and highlights the complexity of legal disputes involving these financial products.

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