Mr. Paul Joyce:

The recent High Court judgment in Millar v.the Financial Services Ombudsman involved a foreign bank, Danske Bank, which took over the business of National Irish Bank. It unilaterally raised the rates on seven variable interest rate mortgages belonging to a couple, one mortgage on their principal residence and six on their buy-to-let properties. The couple complained to the Financial Services Ombudsman that this increase did not refer to any increase in the European Central Bank rate which is at an all-time low. The ombudsman upheld the bank’s right to change the interest rate according to market conditions. That was extremely vague to say the least.
Most consumers with mortgages or other loan agreements do not read the small print. Anyone who has read the terms and conditions of a mortgage agreement will know it is extraordinary the amount of latitude credit institutions give themselves. It is scary in the extreme. If some of these purported rights that the creditor reserves for itself were exercised, the borrower could find a loan called in for the most spurious of circumstances.