The mortgage rate debacle is caused by the trackers (caused by the Banks) . if BoI were ''ordered'' to increase trackers by 0.6% and reduce SVR by 1.8%, BoI's overall mortgage margin would be unchanged( reasonable by EU standards). SVR would be 2.7% and average tracker 1.8%. The screaming from tracker customers would be far louder than the current noise from SVR customers. I think this would be the banks' defense, reasonable overall mortgage margin, caught by the nethers on trackers and screwing SVR customers. How can you rewrite one type of contract and not the other?
Personally I believe that the minimum mortgage rate should be 3%, to cover cost of funds ,operating costs , margin and risk premium.
The above percentages are my best approximates .Central Bank would have the exact details.
,
Personally I believe that the minimum mortgage rate should be 3%, to cover cost of funds ,operating costs , margin and risk premium.
The above percentages are my best approximates .Central Bank would have the exact details.
,
Last edited by a moderator: