Why is my mortgage rate not divisible by 0.25%?

[ronaldo]

I was just reviewing my Pepper online account, where my old National Irish Bank tracker is held, and found it strange that the current interest rate isn't divisible by 0.25%.

I see that they've now applied this closing of the gap between the deposit facility and the fixed rate tender so many trackers, including my own, had their rate drop by 0.6% last month versus the 0.25% many would have seen on the headlines.

 

[ClubMan]

I was just reviewing my Pepper online account, where my old National Irish Bank tracker is held, and found it strange that the current interest rate isn't divisible by 0.25%.

Why do you think that it should be?
The current ECB rate of 3.65% isn't evenly divisible by 0.25.
What's your tracker margin?

 

[ronaldo]

Why do you think that it should be?
The current ECB rate of 3.65% isn't evenly divisible by 0.25.
What's your tracker margin?

0.5% is the tracker margin and I was aware of the deposit rate but not the fixed rate tender used by the ECB.

Many will be surprised to see their mortgage drop by 0.6% as opposed to 0.25%. Some will notice immediately whilst some may see the headline deposit rate drop by 0.25% again in the next 1-2 months and wonder why their mortgage repayments didn't drop by as much as they will this month.