I don't know what a tracker mortgage is!

Nige

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I have a tracker mortgage.

Today I got a letter from my mortgage provider informing me that due to recent interest increase, my montly payment would be going up!
 
Re: My bank don't know what a tracker mortgage is!

Sounds like you have a Standard Variable Mortgage and not a Tracker on their records. Get out your loan offer.
 
Re: My bank don't know what a tracker mortgage is!

No, I definitely have a tracker mortgage.

I will pull out my original offer and speak to them on Monday.
 
Re: My bank don't know what a tracker mortgage is!

What exactly did the letter say? Are you sure that the increase in mortgage repayments might not be due to changes in the owner occupier mortgage interest relief to which you are entitled? This seems to be hitting some people lately (especially those who are hitting the 7 year preferential relief time limit or whose outstanding capital has fallen to the extent that they no longer qualify for the maximum possible interest relief). What are the details of the mortgage - start date, term, original amount, outstanding amount, rate etc.?
 
Re: My bank don't know what a tracker mortgage is!

Are you sure that the increase in mortgage repayments might not be due to changes in the owner occupier mortgage interest relief to which you are entitled? What are the details of the mortgage - start date, term, original amount, outstanding amount, rate etc.?

I should have brought the letter in with me to quote it exactly. It said that due to recent interest increases, the rate applying to my mortgage was going up by 0.1% with effect from 22 January 2008.

I shouldn't pay enough interest this year to full utilise the possible TRS available - but the letter wasn't dealing with that.
 
Re: My bank don't know what a tracker mortgage is!

Wasn't the last ECB rate increase in June 2007? Hardly "recent" and they are hardly only passing this on now. Who is your lender? I know that INBS were increasing their standard variable rates by some amount recently and writing to borrowers around now.
 
Re: My bank don't know what a tracker mortgage is!

It's Bank of Ireland. I'll update you after I speak to them on Monday. I expect to be told that the letter was sent in error but I'll be watching my next interest charge with well, interest.
 
Re: My bank don't know what a tracker mortgage is!

While you may not be utilising all the TRS amount available your payments should be going up slightly each year even if interest rates were the same as you will be paying less off the interest each year and more off the capital.
 
Re: My bank don't know what a tracker mortgage is!

While you may not be utilising all the TRS amount available your payments should be going up slightly each year even if interest rates were the same as you will be paying less off the interest each year and more off the capital.

Who told you this?
 
Re: My bank don't know what a tracker mortgage is!

While you may not be utilising all the TRS amount available your payments should be going up slightly each year even if interest rates were the same as you will be paying less off the interest each year and more off the capital.
If they are paying more interest than the relevant relief threshold and the interest rate has not changed then the repayment should not change. Ultimately we don't have enough information yet to comment authoritatively.
 
Re: My bank don't know what a tracker mortgage is!

I have a tracker mortgage.

Today I got a letter from my mortgage provider informing me that due to recent interest increase, my montly payment would be going up!

Did you get a letter the last time there was actually a rate increase?

when did the ECB last put up rates? September?
 
Re: My bank don't know what a tracker mortgage is!

Did you get a letter the last time there was actually a rate increase?

when did the ECB last put up rates? September?

Yes, and if I recall correctly the increase then was 0.25%.
 
Re: My bank don't know what a tracker mortgage is!

There is no September ECB rate increase listed on the ECB website.
 
Re: My bank don't know what a tracker mortgage is!

the rate applying to my mortgage was going up by 0.1%

This isn't a standard ECB increase then. It sounds like they're trying to change the tracker margin to account for increased money market costs. It's possible your "tracker" loan agreement allows them to do this, depending on what exactly it tracks!
 
Re: My bank don't know what a tracker mortgage is!

Basically you need to establish/post:
  • The precise nature of your mortgage rate type - e.g. is it actually a tracker and if so is there any scope for the lender actually changing the margin (contradictory and all as that may sound)
  • Precisely what it says on the letter in question
  • The other details about your mortgage that I asked about earlier
In the absence of this information people will be left guessing on various issues.
 
Re: My bank don't know what a tracker mortgage is!

For what it's worth, Bank of Ireland have recently increased their Standard Variable Rate by 0.1% for existing customers.
 
Re: My bank don't know what a tracker mortgage is!

For what it's worth, Bank of Ireland have recently increased their Standard Variable Rate by 0.1% for existing customers.

ah, so they think I've a standard variable too.

Mine is definitely a tracker mortgage based on ECB + margin (which I can't recall). It was taken out, for 280k in June 2006 on a 20 year term, but I've been repaying extra and the current balance is €245k.
 
Re: My bank don't know what a tracker mortgage is!

Two possible explanations so - they are mistaken or your are.
 
Re: My bank don't know what a tracker mortgage is!

Bank of Ireland increased their tracker rates from the 22nd of January last, so perhaps that's whats happened...

The APR on the tracker has moved from 5.20% to 5.30%.
 
Re: My bank don't know what a tracker mortgage is!

Bank of Ireland increased their tracker rates from the 22nd of January last, so perhaps that's whats happened...

The APR on the tracker has moved from 5.20% to 5.30%.
Do you mean that they changed the margin chargeable on new tracker mortgages? After all if somebody truly has a tracker mortgage already drawn down then the only time the gross (before interest relief) rate/repayment should change is when the ECB rate changes and there was no rate change in January 2008.
 
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