# Tracker Rate offered on Investment Mortgage



## BlueButton (27 Nov 2009)

Hi Folks,

Just want to get your opinion as I've recently come out of a fixed rate on my RIP mortgage. I had fixed it 3 years ago at a rate of 4.69% which was due to finish at the beginning of Oct. I was expecting them to let me know the new rates / options available but heard nothing. 

Before I rang them, I checked the Letter of Offer and the only options available were a variable or another fixed rate.

However, when I rang they told me I'd been put on a tracker rate of 4.35%. The rate was 3.35% + 1% ECB. I asked what the variable rate would be and they quoted me 4.45%. While my repayments have decreased somewhat I'd have thought the margin would be lower. 

I didn't want to query it in case I'd been given a tracker in error. Is a margin of 3.35% quite high - even for an investment mortgage? 

I'd appreciate your advice.


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## landlord (17 Jan 2010)

Seems a bit high to me. I am on 1.75% (ECB + 0.75%) for my investment mortages. I am not sure what the current rate is averaging???


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## wino (18 Jan 2010)

Maybe I'm missing something but I couldn't get a tracker mortgage for an investment property I have after coming off a very good tracker last year. I'm paying nearly 6% to Haven for an interest only mortgage (euribor rate). Can I ask who you are with because I seem to be doing something wrong here, perhaps you're not doing too badly?

wino


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## Affy (18 Jan 2010)

My understanding is that trackers are no longer being offered by financial institutions - for either domestic or investment loans. Advice is to hang on to it if you've got it.

I am in dispute with our bank who are trying to wiggle out of an "ECB plus agreed margin" deal on an investment mortgage. Anyone else running into this problem?


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## landlord (19 Jan 2010)

I have a few with NIB. To be honest I have many friends all on similar rates with various different banks and they are not being forced onto different rates. My contract guarantees  .75% above indefinately


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## BlueButton (29 Jan 2010)

Thank you for your replies. I really appreciate your comments.

I'm with PTSB and was on a 3 year fixed rate since the start of the mortgage. I never had a tracker and there's no mention of a tracker rate on my Letter of Offer.

I was very surprised when told they'd automatically put me on one, especially as 'new' tracker rates are now extinct. However, the margin quoted of 3.35% seemed quite high. (I haven't received anything in writing confirming I'm on a tracker or the margin/rate).

PTSB is blazing a trail in hiking their variable rates and all other lenders will follow. It seems they can charge what they like, despite Government bail-outs and guarantees. 

When the ECB start changing their rates, they will go one way - upwards, for the foreseeable future. I'm probably best to stay with my 'high-margin' tracker.


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