Comparing the rate offered on expiry of the fixed term with ptsb's variable mortgage rate

[Brendan Burgess]

I am trying to figure out how ptsb worked out the rates they are offering to people whose contract rates were not specified

Here are the SVRs from this thread

 

[Brendan Burgess]

December 2009 , HC 2015 was offered

The tracker rate was 4.25% when the ECB rate was 1%, so the margin was 3.25%

This was 0.6% higher than the SVR

I have not seen ptsb's arguments for this, but I would imagine that they will argue that they were entitled to set whatever price they wanted. For example, in August 2015, they have chosen to set very high fixed rates - that is their prerogative.