Mortgage rate rise recently

T

tosullivan

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We have just been informed that our mortgage went up by 0.25% due to a recent rate hike by the ECB.

I never heard of any such rise....is this true?
 
Is your mortgage a tracker or standard variable?
What do the terms & conditions of your loan agreement say about rates changes?
 
ClubMan said:
Is your mortgage a tracker or standard variable?
What do the terms & conditions of your loan agreement say about rates changes?
Click to expand...
its a tracker...

If the ECB rate went up, shouldn't both tracker & variable follow suit or is it just tracker? So whats the difference?
 
tosullivan said:
its a tracker...

If the ECB rate went up, shouldn't both tracker & variable follow suit or is it just tracker? So whats the difference?
Click to expand...

The T&Cs of a tracker will say that the rate must track the ECB.
In a variable rate mortgage, the mortgage provider is free to change the rate as they see fit. They will probably track the ECB but they have no obligation to.
 
And your tracker rate mortgage agreement T&Cs should clarify the details of when they will track the ECB rate.
 
On the same line my mortgage which I have with BOI for the last 3 years, first year on discounted and last 2 on tracker is at 5.5%. This seems very high to me - am I correct?
 
galw1 said:
On the same line my mortgage which I have with BOI for the last 3 years, first year on discounted and last 2 on tracker is at 5.5%. This seems very high to me - am I correct?
Click to expand...

It's about mid range - there are some lower and some higher.
It is unlikely that you would get a much better rate elsewhere if you owe more than 80% of the value of your house. Many lenders have tracker rates currently at 5.4 and 5.35 . Some are as high as 6.6 (First active).
 
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