While maybe I am jumping ahead here but is the next battle going to be what tracker rate they will actually apply because my understanding would be that most of the mortgage agreements were silent on the actual tracker margin to be used. When I broke out of my fixed terms the ECB lending rate was 1% and the standard variable rate about 4%, would this mean I would be offered a margin of ECB plus 3 potentially? It would be a tracker but not necessarily a bargain! I remember times when tracker mortgages were not necessarily much cheaper than variable ones!
Edit from Brendan to clarify
ptsb had a few different contracts, so you will have to go back and check the actual wording of your letter of offer or mortgage contract
1) Most specified an actual rate: The interest rate applicable to the loan will not be more than 1.1% over the ECB financing rate. This is absolutely clear cut. This is the rate you will get if you are entitled to be put back on the tracker.
2) Other contracts said
On expiry of the fixed rate period, and where the applicant chooses the option of a tracker mortgage interest rate, the interest rate applicable to the loan will be the tracker mortgage rate appropriate to the balance outstanding on the loan at the date of expiry of the fixed rate period.
So it really depends on when you came out of the fixed rate period. In February 2011, ptsb claimed that their tracker rate was ECB +4%. See this thread.
Edit from Brendan to clarify
ptsb had a few different contracts, so you will have to go back and check the actual wording of your letter of offer or mortgage contract
1) Most specified an actual rate: The interest rate applicable to the loan will not be more than 1.1% over the ECB financing rate. This is absolutely clear cut. This is the rate you will get if you are entitled to be put back on the tracker.
2) Other contracts said
On expiry of the fixed rate period, and where the applicant chooses the option of a tracker mortgage interest rate, the interest rate applicable to the loan will be the tracker mortgage rate appropriate to the balance outstanding on the loan at the date of expiry of the fixed rate period.
So it really depends on when you came out of the fixed rate period. In February 2011, ptsb claimed that their tracker rate was ECB +4%. See this thread.
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