# Mortage -Special Condition- Please help



## falabo (19 Jan 2009)

Good evening

I am hoping someone will be able to shed some light. Here is the story:
16 months left into a fixed rate mortgage 4.99%

There is a special condition in my contract which is not very clear to me:

"without affecting the entitlement for the borrower to apply at any time to fix the rate for a further period (if available) and in varaiation of general mortgage loan approval condition 5.1, on expiry of the fixed rate period the interest rate applicable to the loan will not be more than 1.10% over the European central bank (the "ECB rate") as varied by the european central bank (the "ECB"). In the event of any variation of the ECB rate, the interest rate applicable to this loan will not be more than 1.10% over the ECB rate as varied by the ECB"

==> I know than tracker rates are no longer available to new cstomers so I phoned PTSB ans asked at the end of my 3 year fixed, does this mean I will roll onto ECB + 1.1% ? the agent on the phone said that exactly what it means.

Finding all this very confused, I asked to see a mortgage advisor the next time I was in the branch and she said that according to the special terms and conditions of my contract I will not roll onto ECB 1.1%

Can anyone make sense of this ??? 

Any response really appreciated.
F.


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## demoivre (19 Jan 2009)

falabo said:


> Good evening
> 
> I am hoping someone will be able to shed some light. Here is the story:
> 16 months left into a fixed rate mortgage 4.99%
> ...



This condition suggest to me that you will be moving to a tracker after the fixed period  is up if you elect not to fix again.



> Finding all this very confused, I asked to see a mortgage advisor the next time I was in the branch and she said that according to the special terms and conditions of my contract I will not roll onto ECB 1.1%


Can you quote the conditions to which she refers?


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## danFTB (19 Jan 2009)

I have the exact same condition in my mortgage and was told that this is known as a 'price promise' and yes that PermanentTsb will honour the rate, I move to it in August. 
I did have to argue my case though on the phone to PermannetTsb.


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## falabo (19 Jan 2009)

Hi Demoivre and thank you very much for your answer. I do not have the conditions to which this letter refers ...
I'll take it as a price promise rolling to ECB +1.1% then but will ask them to put on paper in clear plain english.

last question do you think I should switch to variable 4.15% (after the last EC cut) with no penalty from breaking fixed rate or hold on to my 4.99% fixed and then avail of the ECB + 1.1% ?
Please note that if I switch to variable my tracker rate will be gone . . . 16 months left. borrowed 265,000
Thanks


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## exbroker (19 Jan 2009)

Hi Falabo..pretty much the same wording on my First Active fixed rate and I rolled onto the tracker last month. If you do go variable now, you more than likely won't get back on a tracker in the future.


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## PaddyW (19 Jan 2009)

It's more definite than more than likely won't, you definitely won't.


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