We are on a tracker mortgage from PTSB which states ECB+1.10%, 250k-750k. The value of the mortgage is now 254k. Does that mean our rate will change when gets below 250k? Or should it be negotiated to a better deal? Any advice appreciated.
In the halcyon days of the tracker mortgage some banks graded their tracker offerings according to the size of the mortgage as they did with yours.
Mortgage of 250k - 750k = ECB + 1.1%.
It was usually the bigger the mortgage the better the rate (bigger mortgage meant bigger repayments) so the fact that your mortgage may fall below the threshold level of 250k is actually a disadvantage. It may trigger a condition where they can take you off the tracker and put you on a different rate. I would say nothing and be happy to be on the tracker.
Of course check your individual terms and conditions on your loan offer.
I don't think that's correct NorfBank - as long as the initial mortgage amount was in the 250-750k range you have that rate for the term of the mortgage.