# Can TSP (or First Active) change your tracker rate?



## monkstownman (30 Apr 2008)

Hi,
I've being reading in the media about tracker rates going up, mention is made that this will not only apply to new customers but potentially existing customers. Can this be possible?
The very word tracker implies that you are signing up to something that tracks the ECB rate.
I can't find a definitive answer to this.
Any ideas?
John


----------



## dmac (30 Apr 2008)

AFAIK they can't change the rates with existing customers, they like you entered a contract and must adhere to it.


----------



## Deb___ (30 Apr 2008)

On First Active's website (first page) it says about Tracker Mortgages:
"*How does it work?*
The First Active Tracker Mortgage has an interest rate that follows the European Central Bank (ECB) base rate. We add a fixed percentage, set when you apply for your mortgage and *remaining the same until the mortgage has been entirely repaid.*"

So it seems they can't change the actual fixed percentage above the ECB rate (though obviously the ECB rate itself does change).


----------



## Dreamerb (30 Apr 2008)

Where tracker rates are going up, it's mostly for new customers. However, I believe that a few institutions have - particularly in the last number of months - put clauses in their letters of offer allowing them to vary even existing trackers if Euribor, the interbank offer rate (which is generally the banks' cost of funding), exceeds the ECB rate plus your tracker margin. If that occurs, the rate you're put on may then track Euribor. 

If in doubt, check your letter of offer - it is a really important document!


----------



## irishlinks (30 Apr 2008)

Dreamerb said:


> However, I believe that a few institutions have - particularly in the last number of months - put clauses in their letters of offer allowing them to vary even existing trackers if Euribor, the interbank offer rate (which is generally the banks' cost of funding), exceeds the ECB rate plus your tracker margin. If that occurs, the rate you're put on may then track Euribor.



Do you know for definite that any lenders have done this? Which ones? If not - what makes you "believe" it?


----------



## Dreamerb (30 Apr 2008)

irishlinks said:


> Do you know for definite that any lenders have done this? Which ones? If not - what makes you "believe" it?



I read it, can't 100% guarantee (since I'm not in the mortgage or housing research business or in the market for a mortgage at present) how correct either the reportage or my recollection of same are, and can't remember of which lenders it was said. Hence "I believe" as opposed to "I know that X, Y and Z have...". 

Your rapid fire questions and quotation marks make it look remarkably as though you're taking umbrage my not providing full verified citations.


----------



## irishlinks (30 Apr 2008)

It's just a rumour then?


----------



## Dreamerb (30 Apr 2008)

I didn't think so, but perhaps I am mongering!


----------



## OneLife (1 May 2008)

IIB have recently (within the last 60 days) included the following in their loan offers:

_In determining the interestrate applicable to this loan facility, the Lender retains the right at it's sole discretion to substitute one month EURIBOR (as
determined by the Lender on the first business day of each calendar month) for the REFI rate where one month EURIBOR is
more than 0.25% above the REFI rate for a period of longer than 30 days. This substituted rate would no longer apply from the
first day of the month following a continuous period of 30 days where the one month EURIBOR is less than 0.25% above the
REFI rate, and the REFI rate would then be used in determining the interest rate applicable to this loan. One month EURIBOR
means the rate at which the Lender shall determine to be the rate at which the Lender is offered funds of like amount on the Euro
Interbank Market for a period of one month.The Lender may at it's sole discretion vary the percentage margin above the REFI
rate referred to above at any time between the date of this offer and prior to its acceptance by the Borrower. Any such variation
will be notified in writing to the Borrower._


ptsb do have the following clause (which doesn't make specific reference to the EURIBOR) 
_
IF, _​_FOR WHATEVER REASON, AN EVENT OCCURS WHICH FUNDAMENTALLY__ AFFECTS THE USE OF THE ECB RATE AS A REFERENCE RATE FOR LOAN PERMANENT TSB, IN l'TS SOLE DISCRETION, SHALL BE ENTlTLED TO USE SUCH OTHER REFERENCE RATE OR OTHER METHOD OR BASIS OF CALCULATION AS IT DEEMS FAIR AND RESONABLE AND NOT WITHSTANDING THE USE OF SUCH OTHER REFERENCE RATE OR METHOD OR BASIS OF CALCULATION. _


----------



## irishlinks (1 May 2008)

Great - some actual facts. Thanks OneLife.  Is that PTSB clause a new one?


----------



## OneLife (1 May 2008)

ptsb clause has been there since early 2007.....

All lenders (i believe) would have similar clauses hidden away in their general conditions.

However ptsb had theirs blatantly in the Special Conditions


----------



## micheller (1 May 2008)

Are those T&C's applicable for trackers?
Are there different T&C's for different mortgage types?


----------

