I have simplified my situation in my mind and it makes perfect sense to me now!!
According to their rates, when I was DUE to exit fixed rate in April 10, I would have been on 3.25+ECB, so that's what they've put me on now.
However, had things originally proceeded as they should have, when I ACTUALLY exited the fixed rate in January 09, I would have been put on tracker rate of 1.68+ECB, so that's what I'm looking for now!!
TAKEN FROM MY CONTRACT WITH PTSB
Special Condition A.
General mortgage loan approval condition 5 conditions relating to fixed rate loans applies in this case. The interest rate specified above May vary before the date of issue of the loan. On expiry of the fixed rate period, and where the applicant chooses the option of a tracker mortgage interest rate, the interest rate applicable to the loan will be the tracker mortgage rate appropriate to the balance outstanding on the loan at the date of expiry of the fixed rate period.
So what exactly does that mean "appropriate to the balance outstanding on the loan at the date of expiry of the fixed rate period" . It does not sound like it is appropriate to what the bank feel they can apply, it does not sound like it is related to the ECB rate at that time and it does not sound like it is appropriate to the banks cost of funds/wholesale lending/strategic defaulters costing the banks etc etc
If I complete the fixed period which I did then the balance should be what was expected when we started the fixed period 3 years earlier. If anything the rate could be lower than the margins offered at the beginning of the fixed rate.
On my open 24 account it says 'Tracker <80% <500,000 ECB+0.8%'. Would this suggest that my loan is, tracker rate, is less than 80% LTV and the total amount mortgaged is less than 500,000. I would think this is how my rate was calculated as by definition of a tracker
The definition of tracker mortage loan under the consumer credit act 1995 clearly states the amount of the percentage over the ecb rate will depend on the amount of the loan
Hey Brendan, just a question regarding your statementI see your point.
You have a rate specified in your contract. They decided that rate at the time based on the LTV and the amount borrowed. That really is the end of it.
In early to mid 2009, when people were coming out of fixed rates and their contract entitled them to a tracker at the then prevailing rate, ptsb put them on rates of 2.25%. Later in 2009, they upped this rate to 3.25%. These are in line with the SVR ptsb was charging at the time. Unfortunately for the borrowers, the contract allows ptsb to set the tracker margin as ptsb sees fit.
I think it's a bit of a leap to decide they were within their rights without knowing the specifics of peoples' mortgage conditions
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