Advice on tracker

Looking for some advise on giving up my tracker option in 2009 giving the recent drop in the ECB rate.

Took out mortgage in 2006 and fixed for three years. At the end of the fixed we received a letter with options on what rate we would like to move to. They included various fixed rates, an svr and a tracker of ECB +3.25

As the SVR was cheaper than the tracker we choose SVR.

My question is were the bank obliged to advise us as customers about the consequences of not choosing the tracker option. I read somewhere that the central bank state that banks have a responsibility to do so. Our loan to offer letter just says we would be entitled to a tracker rate depending on prevailing rates and does not mention a specific rate if choosing the tracker option.

I accept we bet against the tracker and selected SVR so probably have no argument but would like to see if anyone else has had a similar experience or could share some information.

No, the crystal ball wasn't working that day! The bank couldn't tell you what was likely to happen and most probably didn't even know how valuable that tracker was to become.

Gotta love these questions. They always come up after a rate reduction!

Check you original loan offer from 06 and see what the conditions were when the fixed rate expired. You could have a condition that states your tracker rate is set

ie 1.1 over ECB rate

Just says prevailing.

Thanks for reply.

You were offered a tracker and choose not to take it.

If the bank did not offer you a tracker, when they were obliged to, as they had promised that they would in your offer letter, then they would be to blame.

In this case, there does not seem to be any evidence that the bank did anything wrong.

huskerdu said:

You were offered a tracker and choose not to take it.

If the bank did not offer you a tracker, when they were obliged to, as they had promised that they would in your offer letter, then they would be to blame.

In this case, there does not seem to be any evidence that the bank did anything wrong.

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Thank you huskerdu for answering my question. Have to say it makes sense but wanted to check for sure.