Different tracker rates?

[Paulk]

Hi,

I'm curious to know how tracker deals are calculated.

When I got my mortgage nearly 3 years ago, I was unaware of the ins and outs and just let my broker negotiate my deal.

However, after speaking with some friends and reading this forum, I realise that, at pretty much the same time, some people got tracker mortgages for +.75% ECB, while others got + 1% ECB and + 1.25% ECB etc. If I'd known this at the time, I would have pushed my broker to get a better rate for me.

A few years ago when banks were still giving tracker mortgages, why were there such discrepancies? Why did everybody not go, or at least attempt to go for, the lowest tracker deal?

 

[NorfBank]

It all depended on your loan to value (LTV) i.e your mortgage amount versus the value of your house.

e.g

if you had an LTV of less than 50%, you could get an ECB + 0.50% tracker
if you had an LTV of less than 80%, you could get an ECB + 0.75% tracker
if you had an LTV of over 80% you could get an ECB + 1.1% tracker.

There were many different trackers available so the above examples are not exhaustive.

[broken link removed]

 

[irishlinks]

Hi,

I Why did everybody not go, or at least attempt to go for, the lowest tracker deal?

As - Norfbank said - lower LTV meant better tracker rate. But - also many people that went through brokers and trusted them to get the best deal - did not have access to the company offering the lowest trackers - which was NIB for a lot of the time trackers were available . NIB did not deal with brokers.