# Can PTSB wriggle out of tracker?



## geeb (24 Aug 2010)

Hi,

We’ve a tracker mortgage with PTSB due to come off interest only next year.  I’m worried that PTSB might try to wriggle out of the tracker so I checked our mortgage conditions.  
The clause below worries me.  It sounds as if PTSB can do whatever they like.  

“If, for whatever reason, an event occurs which fundamentally affects the use of the ECB rate as a reference rate for this loan, Permanent TSB, in its sole discretion, shall be entitled to use such other reference rate or other method or basis of calculation as it deems fair and reasonable and not withstanding the use of such other reference rate or method or basis of calculation, the rate so calculated by Permanent TSB shall be and apply as the reference rate applicable to this loan in place of the ECB rate”.

Any opinions welcome.  Is the change in the economic climate a sufficient reason for them to change us from a tracker mortgage?

Geeb


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## aristotle (24 Aug 2010)

Surely that clause is too vague, I would imagine the Financial Regulator would be on your side.


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## PaddyW (24 Aug 2010)

I've something like that in my loan agreement too. If they tried to use the economy as the reason, I'm pretty sure the FR would crucify them.


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## NorfBank (24 Aug 2010)

That's a standard clause in tracker mortgages. I wouldn't worry.


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## geeb (24 Aug 2010)

Thanks for the replies.  That's a relief!


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