G Galen Registered User Messages 11 23 Jul 2012 #1 I have a rental property, which is on an interest only mortgage for the last several years of about 5%. This rate has not decreased in line with interest rate decreases over the last while. Is this normal?
I have a rental property, which is on an interest only mortgage for the last several years of about 5%. This rate has not decreased in line with interest rate decreases over the last while. Is this normal?
L LDFerguson Registered User Messages 4,751 23 Jul 2012 #2 Check your original loan offer or ask the lender: - If the interest rate is a Tracker Variable, the rate should have down every time the ECB cut rates. If the interest rate is a Standard Variable, the lender has discretion over when or if to pass on ECB rate cuts. If the interest rate is on a Fixed Rate, it won't change until the end of the Fixed Rate period.
Check your original loan offer or ask the lender: - If the interest rate is a Tracker Variable, the rate should have down every time the ECB cut rates. If the interest rate is a Standard Variable, the lender has discretion over when or if to pass on ECB rate cuts. If the interest rate is on a Fixed Rate, it won't change until the end of the Fixed Rate period.