Monday 20 November 2017

Thousands of Permanent TSB mortgage holders set for windfall

A couple look at their options outside an estate agent's window
A couple look at their options outside an estate agent's window
Charlie Weston

Charlie Weston

THOUSANDS of mortgage holders with Permanent TSB are set to get windfalls and be restored to ultra cheap tracker rates.

The move comes after the bank decided to stopped appealing a case to the Supreme Court.

Other banks are now likely to have to make similar concessions to people who were not warned properly that they would lose an option to move to low-cost trackers.

Permanent TSB has advised the Supreme Court that it is withdrawing appeals to that court that were scheduled for hearing later this month.

The issue relates to the position of two mortgage holder couples who broke the term of their fixed mortgage rates early and then wanted to move to tracker rates. 

They had been told they could go on to a cheap tracker after the end of the fixed-rate period. But the bank denied them the tracker option.

But the bank fought this. It lost a case to the Ombudsman for Financial Services.

This decision was appealed to the High Court, which upheld it. The bank then appealed this to the Supreme Court.

But it has now dropped the Supreme Court action, after the Central Bank said it was probing the bank’s actions.

Up to 2,000 other Permanent TSB customers are understood to be in the same position, having been denied trackers. They now stand to be restored to their trackers and to get a windfall to make up for their losses over the last six years.

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