I don't know what a tracker mortgage is!

Re: My bank don't know what a tracker mortgage is!

Re your query Clarkey. I learnt the theory in school and when i took out my mortgage i was given what's called a Amortization table showing how much of my payments each month are off the interest and how much off the capital for the first year and then the yearly amount off each. If you have an interest only mortgage when the interest should stay the same each year subject to interest rate changes. you never pay off the capital so the interest is being charged on the same sum (until you do). With a standard mortgage some of the money paid each month is going off the capital some off the interest, therefore each year the capital should be reduced and if interest rates stayed the same your paying less interest each month and even more off capital. My TRS seems to go down each year and it is more obvious if you have the mortgage over a shorter term. You can get sites which will work out your amortization for you.
 
Re: My bank don't know what a tracker mortgage is!

I'm not sure.

The offer they had until the 22nd of Jan was a first year discounted rate of 4.65% moving to 5.15% from year two to the rest of the term - APR of 5.20%.

What they now have, effective as I said from the 22nd, is a first year discounted rate of 4.80% moving to 5.25% for yr 2 and onwards - an APR of 5.30%.

So, the new-to-bank rates have definitely changed. I imagine that, as a tracker customer on presumably Year 2-and-a-bit now (since 2006 I think you said), that they've probably been automatically moved along with the new rate... since that is now the BOI rate. I'd check with the branch though.
 
Re: My bank don't know what a tracker mortgage is!

Thrifty said:
Re your query Clarkey. I learnt the theory in school and when i took out my mortgage i was given what's called a Amortization table showing how much of my payments each month are off the interest and how much off the capital for the first year and then the yearly amount off each.
Click to expand...
See Karl Jeacle's mortgage calculator to see an example.
My TRS seems to go down each year and it is more obvious if you have the mortgage over a shorter term.
Click to expand...
This will happen once the annual interest bill falls below the relevant tax relief limit. Above that you should see no difference on a tracker mortgage unless and until the base rate changes.
 
Re: My bank don't know what a tracker mortgage is!

Thrifty said:
Re your query Clarkey. I learnt the theory in school and when i took out my mortgage i was given what's called a Amortization table showing how much of my payments each month are off the interest and how much off the capital for the first year and then the yearly amount off each. If you have an interest only mortgage when the interest should stay the same each year subject to interest rate changes. you never pay off the capital so the interest is being charged on the same sum (until you do). With a standard mortgage some of the money paid each month is going off the capital some off the interest, therefore each year the capital should be reduced and if interest rates stayed the same your paying less interest each month and even more off capital. My TRS seems to go down each year and it is more obvious if you have the mortgage over a shorter term. You can get sites which will work out your amortization for you.
Click to expand...

Sorry Thrifty I misunderstood your post. I assumed you were talking about pre-TRS figures.
 
Re: My bank don't know what a tracker mortgage is!

Simple Simon said:
So, the new-to-bank rates have definitely changed. I imagine that, as a tracker customer on presumably Year 2-and-a-bit now (since 2006 I think you said), that they've probably been automatically moved along with the new rate... since that is now the BOI rate.
Click to expand...
Not if the customer in question already has a "proper" tracker rate which contractually guarantees a fixed margin above the ECB rate. In that case the only thing that can change the gross scheduled repayment amount is an ECB rate change. If they are on a "tracker" rate which allows the lender to change the margin then it's not really a tracker at all.

Either the bank have made a mistake (not impossible but seems unlikely) or the original poster has and is not in fact on a tracker but is on a standard variable rate or a "tracker" on which the margin can be changed.
 
Re: My bank don't know what a tracker mortgage is!

A large slice of humble pie here!

I've wrongly thought, for the last year and a half, that my mortgage was a tracker. It's not.

So, BOI are well entitled to increase the rate. However, as the increase only brings it up to 4.59%, I'll stick with them until June (when my discounted rate expires).
 
You must log in or register to reply here.
Back
Top