Tracker Mortgage from Ulster Bank to AIB

[JosephineMc]

I’m seeking advice, please.
Our tracker mortgage was originally with Ulster Bank, but when they exited the market, AIB took over. Recently, we received a letter from AIB informing us of a rate change due to the ECB rate, adjusting it to 4.8% as of November 1st. However, I thought the current ECB rate was 3.4% (or thereabouts). Is there any reason why the bank would not apply the current ECB rate to our mortgage? I know that when rates increased last year, they were always applied straight away to our tracker mortgage rate.

 

[stephnyc]

Tracker mortgages were offered at the ECB rate plus a margin. Looks like yours was ECB +1.4%? Mine was ECB +1.3%, which I took out in 2007, so it looks about right to me.

 

[JosephineMc]

Tracker mortgages were offered at the ECB rate plus a margin. Looks like yours was ECB +1.4%? Mine was ECB +1.3%, which I took out in 2007, so it looks about right to me.

Thank you for your response. Since posting my message this morning, I realised—silly me—that I overlooked the concept of the "margin." It turns out ours is set at 1.15, and like you, we took it out in 2007. so that answers my query, thanks again