Lowest tracker margin known?

P

pacmon

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Hi,

I'm more just curious on this one, but does anyone know what the lowest tracker margin in Ireland ever was? I always thought 0.99% was the standard margin that everyone got years ago, but I've heard of seem even lower, numbers like ECB + 0.65% or along those lines...

Thanks.
 
I had a colleague who had a 57bp margin. Not sure the lender.

I think I have read of lower here on AAM.
 
I had ECB + 0.50 % tracker with Danske Bank. which moved to Pepper some years back, took it out from around 2005/6, but as with all of these, you had to have a low LTV.

At the time i took it out, the 0.50 % rate was subject to an LTV of 50 %, we just scrope over that line !
Needless to say, it was my 5th, and final bank with our mortgage.

I don’t remember anyone else offering 0.50 % at the time, i certainly shopped around at the time, but situation could have changed after i took it out.
 
Very interesting Brendan, laughing, as all were withdrawn after the “crash”
 
Not the lowest but with an LTV of 100% I got a margin of 0.75% from UB , Dec 2007.

Served me well so far,
 
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I had ECB + 0.5% from NIB / Danske.

That was the lowest, AFAIK.

Sorry, I've just seen the 0.45% above, which surprised me.
 
I have a mortgage at 0.5% margin in Ireland.

But I had a mortgage somewhere else at 3 month Euribor plus 0.45% with no floor, so that was -0.3% plus 0.45%, i.e. 0.15% at one stage.
 
I actually know of negative tracker rates that were operational in Ireland.
They were not available as normal but they were ECB plus 0.45 with a margin added that was a minus 0.95. So when things went zero the bank adding credit interest.
 
Hello,

I still have my Tracker, obtained from Danske Bank in 2006 (I actually refinanced by UB Tracker, originally drawn in 2024, at 75bps over ECB)

It's always been up to date, but managed by Pepper these days (no idea who the ultimate lender is).

It's 52bps over ECB, and they can have it back, when they pry it from my cold dead fingers

Getting a Tracker was one of the best financial decisions I ever made.
 
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Yup, the margin to bring it to minus was added manually.
The Mortgage system allowed it.
 
rameire said:
Yup, the margin to bring it to minus was added manually.
Click to expand...

Hi rameire

Can you be very specific about what you mean. Spell out how people in Ireland paid negative interest rates.

The ECB rate on which tracker mortgages was based reached 0% in 2016 but was never negative.
rameire said:
They were not available as normal but they were ECB plus 0.45 with a margin added that was a minus 0.95. So when things went zero the bank adding credit interest.
Click to expand...

So ECB + 0.45% = 0.45% and not -0.95%



Brendan
 
rameire said:
ECB plus 0.45 with a margin added that was a minus 0.95
Click to expand...

That is meaningless. 0.45% is the margin.

If you are saying that that the margin was 0.45% -0.95%, they would have expressed this as a margin of -0.5%

which is why I think you misunderstand what happened.
 
Some commercial loans were given as a margin over the interbank rate - euribor.

euribor was about -0.5% for a short period

Euribor 2020

Euribor 2020: overview of the development of all Euribor rates in the year 2020
www.euribor-rates.eu

So if a mortgage was euribor + 0.3% , then the rate could have been negative.

But these were not given for house loans. Maybe for investment property loans.
 
As clubman had worked.
ECB + 0.45% - 0.95% = ECB - 0.50%
The customer had an ECB + 0.45% rate.
But the Mortgage system had a manual input area where a positive or negative margin could be applied.
It was a functionality that was not used business wide but was accidentally used on a handful of mortgages due to incorrect use.
When ECB went to zero it was noticed that some interest postings to some mortgages were negative and therefore crediting payments to the mortgage due to the margin putting the active rate into a minus.
 
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