Tracker vs Variable - difference??

[11.11.18]

what is the difference between the tracker and a variable?? also does anyone know of a site that gives all the interest rates available on the irish market??

 

[steveyd]

tracker - tracks the ECB rate so yesterdays rise of 0.25% will be incorporated in the mortgage rate next week on. Move in line with the central european rate

Variable rate - this is at the discretion of the individual banks, but will more than likely increase by the 0.25%

Check the Irish Times out for listing of all the rates for the Irish Banks

 

[11.11.18]

would the bank often increase its variable rate at a rate greater than a hypothetical increase announced by the ECB???

 

[steveyd]

I would say unlikely due to the competitive market for mortgage business, but you would be more at the mercy of the banks than if you have a tracker mortgage.

 

[ClubMan]

They may pass on increases in full but only pass on cuts in part. They have done this in the past as a way to inflate their margins. While a tracker will reflect rate changes (in particular increases!) more or less immediately it does have the advantage of guaranteeing a known fixed margin. I don't think that there is a standard variable rate around that has a lower margin than the most competitive tracker?