What is a tracker?

T

themom

Guest
Can someone explain this to me like I am a 5 year old because even though Im not 5 I just dont understand!
 
themom said:
Can someone explain this to me like I am a 5 year old because even though Im not 5 I just dont understand!
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I presume you mean a tracker mortgage?? All this means is that your mortgage rate tracks the base rate set by the European Central Bank so when the ECB raises rates, your mortgage rate goes up by the same amount and vice versa when they reduce rates. Banks then charge a set margin on top of this ECB rate and this margin varies depending on institution and factors such as loan to value ratio.
 
www.itsyourmoney.ie

FYI - this is the type of query that itsyourmoney.ie (and the associated contact e-mail, number and postal address) was set up to help with by the Financial Regulator (required as not everyone is lucky enough to have discovered AAM!, at least not yet).

http://www.itsyourmoney.ie/contactus


Can't say I've ever contacted them myself (this was just the second time I actually looked at the website, first was following the initial TV add campaigne), but I'd assume the level of information available is quite good.
 
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