CarrotStick
Registered User
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Thanks CarrotStick.
So IANAL but based on the wording from your loan documentation:
Your contract outlines plenty of scope for Ulster to vary your mortgage rate from the euribor. As a result your mortgage is unlikely to meet the definition of tracker outlined in your first post.
I see your viewpoint on this Scrooge, however when I look at the CBI’s definition of a tracker interest rate within the framework for conducting a tracker mortgage examination again, it states
“For the purposes of the Examination, a “Tracker Interest Rate” refers to the interest rate applied to a mortgage product: 1) which tracks a rate which comes from a publicly available source which can be verified by both the customer and the regulated entity, including without limitation, a rate that tracks the European Central Bank (ECB) main refinancing operations rate; and 2) which is calculated in a manner similar to a rate which falls within 1) above, and includes interest rates calculated on the basis of a fixed rate margin and/or pricing promise.
2 Both enduring and one-off contractual rights and options are to be included within the scope of the Examination”.
The interest rate applied to my loan tracks a rate which comes from a publicly available source, namely the one month euribor, point 1) in the UB’s definition of BCOF refers. The CBI’s definition of a tracker interest rate for the purposes of the tracker mortgage examination is very broad and specifically does not say solely tracks such a rate. This is why I believe such UB BCOF mortgages should have been included in the tracker mortgage examination.
Another very important point that I would like to make is that if my loan is sold on, to say Promontoria or another fund, such funds do not have any regulatory, special reserve and/or special deposit or liquidity or funding requirements like mainstream banks do. So then, if my facility was sold to such a fund, without doubt, the BCOF mortgage facility becomes a tracker mortgage, even by your definition of what a tracker mortgage is. Is that not the case?