Sunday Business Post/ Tracker Mortgages

[setanta78]

I am being led to believe that there was an article in last weekends Sunday Business Post about Tracker Mortgages. In a nutshell, I am told that certain banks have written to their legal departments to see if there is any way that they can increase the rate outside of the ECB rate.

Can anybody throw any light on this?

 

[infinity]

full article here

The general gist of it is that there is small print in tracker mortgages that may allow the banks to wriggle out of them....

Such as the Eurobor and ECB rate being significantly different.

Most trackers were sold on a LTV basis - as property prices have dropped this may negate the LTV deal a borrower is on. I'm not sure if lenders want the real value of their loans exposed too much though!!

 

[marshmallow]

Scary stuff! If the gov allowed the banks to wriggle out of this one (after NAMA, guarantees etc) there should be blood on the streets!

 

[JR Rizzo]

Scary stuff! If the gov allowed the banks to wriggle out of this one (after NAMA, guarantees etc) there should be blood on the streets!

Not really,
it will be very hard and unfair on those fortunate to be on trackers
but wont harm those who are not, esp non-tracker holding shareholders!!!

One of the reasons why standard variable and fixed rates are so far
above ECB 1%, is because the banks provided all these .5% above ECB
tracker rates during bubble.
(ie money they lose on trackers is made up on non-trackers)

Banks have lost so much credibility
it wouldnt surprise me to see them try pull this off.

JR

 

[Latrade]

I wouldn't put it past them trying. Even with the small print that may allow it, like with the Endowment Mortgages in the UK, they open themselves up for cases of misselling the trackers IMO.

 

[Sunny]

I would like to meet the CEO of one of the Irish banks brave enough to try this. Won't happen. Will never see ECB trackers offered again though!!

 

[Kine]

I would like to meet the CEO of one of the Irish banks brave enough to try this. Won't happen. Will never see ECB trackers offered again though!!

I'll just walk upstairs and thump mine if he does

 

[Shawady]

I would like to meet the CEO of one of the Irish banks brave enough to try this. Won't happen. Will never see ECB trackers offered again though!!

What makes you so sure they won't try it. If they spin the line 'We have to do this or we will need more cash from the taxpayer' they might go for it.
I hope you are right as I am on a tracker but I have a funny feeling once the bad loans are transfered to NAMA, the banks won't care how they get more money from their customers.

 

[Sunny]

What makes you so sure they won't try it. If they spin the line 'We have to do this or we will need more cash from the taxpayer' they might go for it.
I hope you are right as I am on a tracker but I have a funny feeling once the bad loans are transfered to NAMA, the banks won't care how they get more money from their customers.

Just can't see it unless the banks have a watertight get out clause and most of the banks don't have one in their tracker contracts. I know there certainly isn't any clause in my contract with Ulster Bank that allows them get out. And I used to have a mortgage with AIB and there wasn't one there either. Irish banks were very careless when drawing up these contracts.

 

[NorfBank]

Just can't see it unless the banks have a watertight get out clause and most of the banks don't have one in their tracker contracts. I know there certainly isn't any clause in my contract with Ulster Bank that allows them get out. And I used to have a mortgage with AIB and there wasn't one there either. Irish banks were very careless when drawing up these contracts.

So that's Ulster Bank stuck.

I just looked over my ICS loan offer and the only way that I can be put on a variable rate is if the ECB rate is unavailable. This presumably holds true for BOI too.


www.moneybackmortgages.ie

 

[jhegarty]

No outs in the PTSB one (oct 05) either.