# PTSB Mortgage, offered correct tracker rate?



## brian (4 Jul 2019)

Hi,

Am I entitled to compensation over being offered an incorrect tracker rate?
I have contacted PTSB who have said no, but I wanted to double check.
Mortgage details:

Oct 2007: Draw down 2 year fixed rate
Oct 2009: Switched to tracker ECB+2.25% after fixed rate period elapsed

thanks in advance,

Brian


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## Brendan Burgess (4 Jul 2019)

I assume you had a contract that said you would be entitled to the then current rate when the fixed rate ended? 

According to this post, the then current rate was 2.25% 






						PTSB - PTSB - on expiry of fixed rate, tracker rate not specified
					

Some PTSB fixed rate contracts,  specified that on expiry of their fixed rate, they would be put on the "tracker rate then prevailing".  Other contracts specified an actual rate e.g. "on expiry of the fixed term you will be offered a tracker rate of ECB + 1%"  I would like to compile a list of...



					www.askaboutmoney.com
				




So, I would say that you are on the right rate. 

Some have argued that this rate is too high, but I have not seen any basis for their argument.

Brendan


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## brian (5 Jul 2019)

Thanks for your reply Brendan.

We verbally discussed ECB +1.25% at original drawdown.
I will request copy of original contract from PTSB to see if it has the lower rate. 


thanks again,

Brian


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## roisinhk (19 Feb 2022)

brian said:


> Thanks for your reply Brendan.
> 
> We verbally discussed ECB +1.25% at original drawdown.
> I will request copy of original contract from PTSB to see if it has the lower rate.
> ...


Hi Brian. Did you ever get anywhere with this. My sister in law in same boat.


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## peemac (20 Feb 2022)

roisinhk said:


> Hi Brian. Did you ever get anywhere with this. My sister in law in same boat.


The poster drew down a fixed rate. 

As no tracker margin was in the contract it does not matter what was "discussed" as it was not accepted or agreed.

So the tracker rate that was available at the end of the fixed period is the rate that applies.

Only if a tracker % rate is written into the contract would there be an issue and with most contracts scrutinized in the central banks campaign, it is highly unlikely your sister in law would have an issue.


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## roisinhk (20 Feb 2022)

brian said:


> Thanks for your reply Brendan.
> 
> We verbally discussed ECB +1.25% at original drawdown.
> I will request copy of original contract from PTSB to see if it has the lower rate.
> ...


Hi Brian. Did you ever get anywhere with this. My sister in law in same boat.


peemac said:


> The poster drew down a fixed rate.
> 
> As no tracker margin was in the contract it does not matter what was "discussed" as it was not accepted or agreed.
> 
> ...


Thanks peemac for your response. Do you know after a period of time are they allowed to go onto a normal tracker after 15 years?


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## peemac (20 Feb 2022)

roisinhk said:


> Hi Brian. Did you ever get anywhere with this. My sister in law in same boat.
> 
> Thanks peemac for your response. Do you know after a period of time are they allowed to go onto a normal tracker after 15 years?


Trackers don't exist anymore unless you already have one.
So if the option was not taken up at the end of the fixed period, it is highly unlikely that there would be any entitlement now 

On top of that, some current fixed rate deals beat the 2.25% tracker, so there's little benefit of that rare.

Best to search for the best fixed rate and if there's a decent balance and several years left, look at switching to another finance provider. It's a lot easier than you think.


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## roisinhk (20 Feb 2022)

peemac said:


> Trackers don't exist anymore unless you already have one.
> So if the option was not taken up at the end of the fixed period, it is highly unlikely that there would be any entitlement now
> 
> On top of that, some current fixed rate deals beat the 2.25% tracker, so there's little benefit of that rare.
> ...


Thanks again. 

They are on a tracker that 3.5 as it was a 100% mortgage where as the tracker I'm in is 1.25 or something like that. Id have to check. 

Can you switch mortgage provider if the current house price is the same as the current mortgage so essentially is 100 ltv again? If that makes sense.


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## peemac (20 Feb 2022)

If they are on a 3.5% tracker they should be looking at switching or moving to a fixed rate.

It may be that they are on a 3.5% variable rate.


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## roisinhk (20 Feb 2022)

peemac said:


> If they are on a 3.5% tracker they should be looking at switching or moving to a fixed rate.
> 
> It may be that they are on a 3.5% variable rate.


Its a tracker as it was 100% Mortgage but house is in negative equity.  

Thanks for all your help peemac


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## peemac (20 Feb 2022)

It's unlikely to be 100% loan to value at this point. - even if they bought at the top of the tiger in 2007. It's probably circa 70%

3.5% is a rate that should be changed immediately


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## roisinhk (20 Feb 2022)

peemac said:


> It's unlikely to be 100% loan to value at this point. - even if they bought at the top of the tiger in 2007. It's probably circa 70%
> 
> 3.5% is a rate that should be changed immediately


Completely agree


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## PebbleBeach2020 (20 Feb 2022)

If this should be in a separate thread, feel free to move it. But why wouldn't Tracker mortgages make a comeback. Could a bank start offer these again?


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## skrooge (20 Feb 2022)

PebbleBeach2020 said:


> If this should be in a separate thread, feel free to move it. But why wouldn't Tracker mortgages make a comeback. Could a bank start offer these again?




I don't think anything stopping them. Whack on a decent margin and why not.  While they don't offer this product to everyone existing tracker mortgage customers can trade up and keep their tracker mortgage -albeit with a much bigger margin.

In saying all that ECB rates weren't a great reference for Irish banks funding cost in the past and while low rates are across the board now it doesn't make sense to lock mortgage rates to an imperfect measure of funding costs.

The market had moved on as well. I'm not sure there would be the demand for a tracker style product. A decent medium term fixed rate is probably more desirable now.


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