Tracker vs Variable - difference??

11.11.18

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