EBS Tracker Offer

Just a comment on my recent adventures in mortgages....


After seeing the EBS remove their trackers from their website, I expected the ECB tracker (ECB+1.24%) that we had agreed verbally to be taken off the table.

So I was surprised to get my mortgage Loan offer, with the tracker (ECB+1.24%) intact.

Then I read the small print, and it says "However, if we determine that the 1 month EURIBOR rate is more than 0.25% above the ECB rate for a period of greater than 30 days, then at our sole discretion, we may substitute the 1 month EURIBOR for the ECB rate"

Curently EURIBOR = 4.605%
And ECB = 3.75%

Giving me 5.845% instead of a nice 4.99%

EURIBOR is the average rate at which banks lend to each other in Europe. With the current instability in the markets and banks unwilling to lend to each other, I feel I am essentially getting an EURIBOR tracker, instead of an ECB tracker.

Any advice?
Should I accept this, or argue that this is not the tracker I agreed on, and try for different mortgage (fixed?)

Thanks.

You can always try and argue that its not what was first offered, but i think alot of the banks have had this euribor rate clause included for some time, so this could have been included when you first talked about rates.

you could also ask them what your first months payment will be, considering the euribor rate is and has been higher than .25% for some time.

i have an ebs tracker mortgage.it stays between 1% of ecb.

I guess banks are obliged to inform customers before hand about such important points like Euribor and ECB rates.