Effective Rate v Discounted Rate - 2004 tracker

hi - slightly embarrassed to ask this but I got a tracker mortgage 2004 through the mortgage store - a discounted .85 tracker at an effective rate of .75. Many years ago I contacted the bank as I noticed statements still listed 0.85 on the description. I was told as it was a discounted rate the description stays the same at .85 but effective rate is .75. Roll forward the mortgage is now with BOI and I am moving house and looking for new mortgage. I have two questions - how do i check the effective rate being applied now and over the course of the history of the loan ? to a. confirm the rate applied and b. confirm it is done correctly ?

If you are moving, then your current mortgage is paid off and extinguished along with any rate you had on it. New mortgage = new current rate and new loan and has no connection with any previous loan you had

Easy enough to check the calculations were correct using the end of year statement and a mortgage calculator.

@hellotosh

I have set out how to check your mortgage statement here:


But unless you go into great detail, you probably will not be able to tell the difference between .75% and .85%.

But let's say your mortgage is €300,000
If they overcharge you by 1%, it is €3,000 a year
If they overcharge you by .1% it's €300 a year.

Worth checking but not worth paying a forensic accountant €5,000 just to tell you that they have done it correctly.

Brendan