Are there Tracker "Collars" in the Irish Market?

K

kippy

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Hi,
I've just read an article there ([broken link removed]) based more on the UK market but which brings up a new term that I hadnt been aware of before.
Does anyone know of such "Collars" existing in the Irish Tracker market and if so what they would be, or are they done on a mortgage by mortgage basis.
Thanks and regards,
Kippy
 
Its a good question. I heard about these clauses last week and had never heard them being in place over here. I looked at the docs for my tracker and there is no mention. At least not what I could see. So as far as I know, trackers over here could keep dropping. Maybe somone has seen one though
 
I'm not aware of any. There are not even any collared trackers - but it makes sense for the lenders to have a lower limit.
 
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IIB used to offer a capped tracker when interest rates were rising, this had a ceiling of a certain interest rate that the mortgage could never pass through. Thus if rates fell you would get all the benefit whereas if rates rose your risk of increased repayments was limited to the ceiling rate. This would be the opposite of the collar I guess.

There are no collars on trackers in the Irish market as far as I am aware.
 
irishlinks said:
There are not even any "normal" tracker mortgages available for new borrowers in Ireland anymore - never mind collared or capped ones.
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I'm aware of that, I was just interested to see if those already on trackers would have this clause to deal with.
 
kippy said:
I'm aware of that, I was just interested to see if those already on trackers would have this clause to deal with.
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I just checked. They were not standard trackers in the UK that had the clause. They were specially designed mortgages with cap and floor. The reporting was mis-leading so it is unlikely that anyone over here will be affected
 
Sunny said:
I just checked. They were not standard trackers in the UK that had the clause. They were specially designed mortgages with cap and floor. The reporting was mis-leading so it is unlikely that anyone over here will be affected
Click to expand...

I have read through all the T&Cs of my NIB tracker mortgage (taken out in 2006) and there are no clauses like that.
 
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