# Were all variable rate mortgages actually tracker mortgages?



## skinnylegs (26 Jan 2019)

Hi Guys, sorry if this is obvious, but were all variable mortgages sold in the early noughties not tracker mortgages. As far as I can see the rates always tracked the ECB rate at the time.
                                                   TIA


----------



## Monbretia (26 Jan 2019)

No they weren't, while variable rates in general would increase or decrease in line with ECB they did not have to go up or down by the exact amount of the ECB move unlike a tracker which could only change by the amount of the ECB change.  Ordinary variable rate changes were at the bank's discretion.


----------



## moneymakeover (27 Jan 2019)

Depends on the bank

Eg case of KBC

It's probably true all variable rates were tracker


----------



## Brendan Burgess (27 Jan 2019)

moneymakeover said:


> Depends on the bank



No, it does not. 

A tracker mortgage is one which is guaranteed in the contract to rise and fall exactly in line with ECB rate.  It does not matter which bank issued it. If this is not in the contract, then it is not a tracker mortgage. End of story. 

As Monbretia pointed, most lenders raised and reduced interest rates in line with the ECB rates, but that does not make them tracker mortgages. And this can be seen clearly when the lenders started pushing up mortgage rates while ECB rates were declining.  

Brendan


----------



## moneymakeover (27 Jan 2019)

Even I know the difference between a variable and a tracker mortgage.

My point is that some banks only issued tracker mortgages. I think KBC was example of this in the years after 2005 say.

The contracts were not clear.

Then in 2008 by sleight of hand they started to increase the rates

It's called the tracker mortgage scandal

I'm sure you heard of it


----------



## Brendan Burgess (27 Jan 2019)

moneymakeover said:


> Even I know the difference between a variable and a tracker mortgage.



To be fair, it was not obvious from your post. 



The question was. 

*Were all variable rate mortgages actually tracker mortgages?*

And your answer was plain wrong. 

And it could have confused people. 

If you had meant to say "Some banks issued only tracker mortgages" that would be fine. But that was not the question and it was not what you said. 

Brendan


----------



## moneymakeover (27 Jan 2019)

What I was saying, if not clear, is that

*In case of KBC it is probably true all variable rates were tracker*

I would think it's obvious not all variable rate mortgages were tracker


----------



## skinnylegs (28 Jan 2019)

Thanks Guys


----------

