Hi Peter,Tailspin - does your contract with BoI go on to say "In the event that, or at any time, the Repo Rate is certified by the Lender to be unavailable for any reason the interest rate applicable to the Loan shall be the prevailing Home Load Variable Rate"? Also do you have a clause 6(c) which talks about EURIBOR?
I read a BoI contract for a friend last week and will post a more detailed note later today. Just curious if you have the same wording.
Yes, both parts are in my tracker contract. My reading of "unavailable" is that if for some unforeseen reason, the ECB actually ceased to operate, or was restructured in some way as to cause it not to actually quote a repo rate. I don't think our circumstances now qualify as this rate is available.
Clause 6 (c) states "notwithstanding anything else provided in this Offer letter letter, the varied applicable interest rate shall never, in any circumstances, be less than 0.1% over one month's money at the Euro Inter Bank Offered Rate (EURIBOR).
Does this clause in any way contradict the Special conditions regarding the repo rate? Can anyone explain what it means in plain English - have looked up one month Euribor and it is currently 0.4% (with 12 month at 1.226%). If there is any contradiction here, this was certainly never brought attention to me.