RichInSpirit
Registered User
- Messages
- 1,149
I haven't seen (m)any ECB rate trackers on the continent.
I would love to know what genius came up with the idea of pegging the rate to that of a lender of last resource! It ranks right up there with the EDSEL.
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In effect agreement to a SVR mortgage is entering into a contract where the bank can change the interest rate charged at any time at its own discretion. Recent reductions in ECB rates have generally not been passed on to mortgage holders. The only incentive to banks to return to tracker type mortgages is "competition". While I do see reduced SVR's over a limited period being used to attract new borrowers, I really do not see any incentive to banks to return to tracker type mortgage rates in the forseeable future.A standard variable rate mortgage loan, is a mortgage where the interest rates vary depending on market conditions. Changes in base rates with the European Central Bank (ECB) will usually lead to changes in the standard variable rate, but the lenders can also increase or decrease the rate at their discretion.
Why would they??
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