# Will PTSB increase the 1.68% tracker rate if ECB reduces?



## peelaaa (9 Dec 2008)

Will PTSB increase the +1.68% tracker rate if ECB reduces the rate ?

I am due to come off my discounted tracker in april 2009 and PTSB told me I would go on a tracker of +1.68%. Is that only for now or will it increase if the ECB reduces the rate again before april.


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## LDFerguson (9 Dec 2008)

*Re: Will PTSB increease the 1.68% tracker rate if ECB reduces?*

A tracker variable rate is a fixed margin over ECB.  So if PTSB tell you that the rate will be ECB + 1.68%, that rate would be 4.18% now (ECB is 2.5% + 1.68%).  If ECB goes down by 0.5%, your rate goes down by 0.5%.  If ECB goes up by 0.5%, your rate goes up by 0.5%.  But the 1.68% margin should remain constant if it's a tracker.


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## Thrifty1 (9 Dec 2008)

peelaaa said:


> Will PTSB increase the +1.68% tracker rate if ECB reduces the rate ?
> 
> I am due to come off my discounted tracker in april 2009 and PTSB told me I would go on a tracker of +1.68%. Is that only for now or will it increase if the ECB reduces the rate again before april.


 
Hi i understand what you mean, will they change the margin (+1.68) if ECB reduce rates further. Thats what i would like to know too. Im due off discounted rate in May 2009 and just received a letter this morning stating ill be put on whatever rate is available on the day ????

So they are leaving themselves open to charge me possibly a higher rate that 1.68% if ECB rates are reduced further thereby making more money.

Sorry to intrude on your post but does anyone know if i can force them to set a rate for me now?


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## PaddyW (9 Dec 2008)

Is it not stated in the T&C's of your loan offer exactly what rate you'll be put on when the discount rate expires?


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## rmelly (9 Dec 2008)

This has been discussed a few times before, particularly for PTSB - depending on when drawn down, the mortgage offer may have an explicit rate OR may say it will revert to the current tracker rate at the end of the discount period (in this case April 2009).

I seem to recall PTSB saying after the latest cut that they may (i.e. won't) pass on full ECB cuts in future.

Also PTSB have a paragraph saying they can change what rate they track if ECB gets out of sync with the rate they borrow at (LIBOR?).


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