# Unknown mortgage type currently on 2.25%



## ridcully (7 Jun 2010)

Have been an avid follower of the forum and now have a question of my own - 

I assumed we were on a variable rate since our fixed rate ran out a couple of years ago and we let it go to the default option.  The mortgage rate went down in 2009 as expected but what is worrying me is that since BOI announced their increase in April, our payment has not changed.

The mortgage is with BOI.

The current rate is 2.25% and has been since around this time last year.

It does not say on my mortgage letters or statements since then what TYPE of mortgage we have just what the interest rate is.

I cannot find the letter that showed us what our options were when the fixed rate ran out.

My worry is that we have a variable rate but it hasn't been increased yet by mistake and when they realise we will have to make up the difference, which is proper and correct of course, but in terms of cash flow not good news for us (this is why I have not rang them yet to ask).

If we have a variable which I assumed we have, is there any other reason why the mortgage has not increased when BOI put up their rates in April?

I WILL ring the bank if there is no obvious reason I just wanted to run it past here just in case there is an explanation.


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## NorfBank (8 Jun 2010)

If you're on a variable rate then your mortgage repayments should have increased the eonly reason they would not have is a bank error.

Hopefully you are on an ECB + 1.25% tracker rate. The behaviour of your repayments (falling last year and remaining constant since) would tie in with this.

[broken link removed]


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## ridcully (8 Jun 2010)

A tracker would be fantastic, I just couldn't see how that would be the default option from just letting a fixed term pass, but I see I will definitely have to ring them - thanks very much for replying.


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## anuj21k (8 Jun 2010)

Why not simply contact bank and ask the question and face your fears for once?
Well its is almost certain that you are on tracker but why not query the bank?


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## NorfBank (8 Jun 2010)

Hmmm.



ridcully said:


> I WILL ring the bank if there is no obvious reason I just wanted to run  it past here just in case there is an explanation.


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## Pat Bateman (8 Jun 2010)

anuj21k said:


> Why not simply contact bank and ask the question and face your fears for once?
> Well its is almost certain that you are on tracker but why not query the bank?


 
Given how keen banks are to get people off their tracker rates, perhaps you should just query the current rate rather than whether you're on a tracker or variable rate?

Something along the lines of: "I just wanted to double check my current rate is ECB + 1.25%?". When they (presumably) confirm this, you'll know you're on a tracker. 

If there's any doubt whatsoever as to whether you should be on a tracker, I would not contact the bank under any circumstances. I cannot see any bank contacting a customer, advising them that they shouldn't actually be on a tracker and then demanding arrears of interest in relation to the error. However, by highlighting the issue you could (perhaps) be jeopardising the future benefits of the tracker mortgage.


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## ridcully (8 Jun 2010)

"Why not simply contact bank and ask the question and face your fears for once?"

I love the "for once" like i'm always on this forum fearing something

Anyway, I rang the bank and I am on a tracker which obviously is great, just find it hard to believe that they just put us on it without any negotiation but hey i'm not going to argue about it.


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## NorfBank (8 Jun 2010)

Nice one, good news for a change.


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