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Tracker Mortgage

  • 03-09-2010 9:30pm
    #1
    Idbatterim
    Registered Users, Registered Users 2 Posts: 18,127 ✭✭✭✭


    I have a query on tracker mortgages, is the lenders margin of say 1.5% over the ECB rate guaranteed for the entire duration of loan i.e 20, 25 years etc or is it reviewed periodically?


Comments

  • #2
    Zynks
    Registered Users, Registered Users 2 Posts: 1,693 ✭✭✭Zynks


    In my case I have a letter saying it is for the entire duration of the loan. I assume they have would find legal "methods" to get them out if they really wanted to, but it wouldn't be easy.


  • #3
    tHE vAGGABOND
    Registered Users, Registered Users 2 Posts: 6,693 ✭✭✭tHE vAGGABOND


    I assume they have would find legal "methods" to get them out if they really wanted to,
    if they had, they would be doing it right now..

    the only thing I have heard is of banks offering people cash to come off them, and giving them a decent fixed rate for 5 years or something


  • #4
    dotsman
    Registered Users, Registered Users 2 Posts: 3,636 ✭✭✭dotsman


    As standard, it's for the full duration of the loan, and neither the bank nor customer can change that without the other party agreeing.

    There may be some trackers out there that explicitly had "get-out" clauses, but I'm not aware of any. Certainly wouldn't have been standard.


  • #5
    petermurp
    Closed Accounts Posts: 21 ✭petermurp


    tracker mortgages are seen as loss making products for banks now given the high costs of funds. The margin your tracker tracks the ECB is guaranteed for the full term of the mortgage. Many lenders are trying to get customers to switch to variable or fixed rates, and even when an application for an interest only facility or payment holiday is requested some lenders may use that as a means to cancel your tracker mortgage.


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