The ecb were planning to reduce the refinancing rate by .35%.....my tracker is plus ECB plus 1.05%. My understanding is the change would reduce this 1.05% by .35%....hence my rate would then be ECB plus .7%.
Deposit Rate | Main Refinancing Rate | Difference | |
As at Aug 2024 | 3.75% | 4.25% | +0.50% |
Post technical change - Sep 2024 | 3.75% | 3.90% | +0.15% |
I had to call Pepper Mortgage for them to apply the last one so it only took effect from Aug as did the reduced amount?
Just off the phone to Pepper and the guy had no clue either. Just kept saying that there is no letter on my account! I asked would a letter be issued and how soon after the event and he had no idea!I rang AIB about the reduction to the refinancing rate due in September and they had no clue.
Emailed them and got no response.
I had to call Pepper Mortgage for them to apply the last one so it only took effect from Aug as did the reduced amount?
On a standard variable rate loan and not a tracker I presume? Or do their loan agreement terms and conditions for trackers allow for a lag on applying ECB base rate changes?Same here. I believe it takes about 3 months from after a rate change announcement for the amount to be changed.
The latter for me. I had this out with them some years ago and if I remember correctly T&C say they have 90 days to implement changes.On a standard variable rate loan and not a tracker I presume? Or do their loan agreement terms and conditions for trackers allow for a lag on applying ECB base rate changes?
Is Pepper obliged to pass on the .35% adjustment to variable rate customers, or will they only give the reduction to tracker customers?
Same as the standard/non-tracker variable rate mortgage loan agreement terms and conditions with most or all lenders as far as I know? Such agreements usually (always?) give the lender complete latitude over how the rate is set and if/when market rate changes are passed on. It's been discussed before here on Askaboutmoney and personally I always thought that these contracts were unfair to the borrower but the FSPO rejected a complaint against BOI that I helped take on this issue years ago.They are not obliged to pass it on to anyone other than tracker customers
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