# What happens to Tracker Mortgages if/when the Euro collapses?



## Ruam (1 Dec 2010)

If the Euro collapses as I think it will, what will happen to tracker mortgages?


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## Bob_tg (1 Dec 2010)

I've just posted a concern in another thread that perhaps trackers could be under threat already, as banks will now have to act withing the terms of the bailout package - and perhaps trackers are on the block??


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## FreemanIre (12 Dec 2010)

well there wont be a collapse in the near term so relax but in the future there would need to be an admendment to your policy or it would become void if it was based on a non existant rate


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## Ruam (13 Dec 2010)

FreemanIre said:


> well there wont be a collapse in the near term so relax but in the future there would need to be an admendment to your policy or it would become void if it was based on a non existant rate



But if the euro does collapse how would the new rate be negociated?  Who would decide?


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## Troy McClure (13 Dec 2010)

Why would it effect your tracker rate? Has'nt there always been an ECB even before the Euro? If so, then if your on ECB+1 on contract with your bank wouldn't this continue as far as the interest rate is concerned.
Am open to correction on this...


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## firewire (16 Dec 2010)

I have a tracker with Ulster bank Ireland. As you are aware UB are part of RBOS and therefore not in the Euro. If the euro did fail, the trackers can't be affected. They are a contract that was entered into by the lender and the borrower. As such they are legally binding and will have to be honored for there duration. That is assuming the borrower does not fall into arrears thereby giving the lender a get out of prison free card. If you have a tracker protect it at all costs.


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## Troy McClure (21 Dec 2010)

I think the point was, if the Euro collapses the ECB would be become redundant, so your ECB + whatever would be voided as a consequence.


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## lazing (22 Dec 2010)

My concern would be they leave the underlying debt in Euro, but I earn (new) Irish Punts, massively devalued from my Euro debt... meaning would never be able to repay it, no matter what the rate!


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