Permanent TSB and Tracker Mortgages

Hello all,
I would like to see can Permanent TSB legally force tracker mortgages to variable rate after has been taken over by the government?

julius128 said:

Hello all,
I would like to see can Permanent TSB legally force tracker mortgages to variable rate after has been taken over by the government?

Click to expand...

No. It hasnt happened at EBS who are state owned and have tracker mortgages.

julius128 said:

Hello all,
I would like to see can Permanent TSB legally force tracker mortgages to variable rate after has been taken over by the government?

Click to expand...

I would have thought it would be less likely as it would be political suicide.

Someone mentioned to me this morning that they heard something on the radio about 'Tracker mortgage holders getting burned'. Has there been something in the media about this recently? I haven't heard it.

Shawady said:

I would have thought it would be less likely as it would be political suicide.

Someone mentioned to me this morning that they heard something on the radio about 'Tracker mortgage holders getting burned'. Has there been something in the media about this recently? I haven't heard it.

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It was discussed on the Ivan Yeats show this morning briefly but all guests agreed that it could not happen either from a legal, political or social viewpoint.

Thanks Banker, the person that told me this is a bit of a scaremongerer so I wasn't sure if there was any basis behind it.

so those people currently on variable rates, fixed rates, or without mortgages are expected to subsidize people with tracker mortgages for the lifetime of that particular mortgage. what an utterly ridiculous place this country has become.

Rumour is all there is on this topic so far, and most of it is as you say bruited about by scaremongers. The two options available that I've heard are equally unlikely:

1. Banks seek to exploit some obscure clause allowing them to vary the margin they charge on the ECB rate.

2. Banks seek to apply a special tracker account charge, to much the same effect.

I think (1) would have happened by now to anyone unlucky enough to have such a thing. The banks have not been behind the door to date on closing down any trackers by whatever means they have once they sniff a vulnerability.

It seems the (2) would require Regulator approval, and he's not in the mood for it. Even then, it could well fall foul of a court challenge as a unilateral change of a contract term if account management fees are not mentioned in the mortgage T&Cs.

who ru said:

so those people currently on variable rates, fixed rates, or without mortgages are expected to subsidize people with tracker mortgages for the lifetime of that particular mortgage. what an utterly ridiculous place this country has become.

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No point in blaming other clients of a bank for the bank's failed policy. It's not like they were joining a co-operative enterprise, which sought to carry out some equitable sharing of risk, charges and deposits for the greater good of all the clients.

Instead blame the bank and it's shareholders, who became blind to all downside risk in a headlong rush to leverage their deposit base beyond all possibility of withstanding a devaluation of the underlying assets. They extended the tracker rate mortgages without any intention of using them as loss leader for somehow driving the fixed/variable rate offerings, but instead as profitable packages in their own right. This turned out to be wrong, and the bank suffers. That it passes the suffering to the only people it can victimise does not mean tracker clients have ever looked to be subsidised

Folks

This Letting Off Steam issue has been discussed elsewhere, in the appropriate forum and with an appropriate thread title.