rate increase -> 2.75%

Hi all,

Today I recieved a letter from council informing me of the new rate of 2.75%(excl mortgage protection) on my housing loan.

Has anyone else received a similar notice?

I am surprised as I expected the rate to remain at 2.5% until the ECB
raised its rate. (In the past the rate used to follow the ECB rate movements).

juannjo

juannjo

I got my increase too and yes, I am very suprised. I thought I would have been safe with the council as they are not geard for profit like the banks. Whats going on. I thought it was a variable rate that tracked the ECB. There is nothing to stop them from putting it up to 10% 20%... why stop at 2.75... its the gradual increase to see the reaction. Death by a thousand papercuts.

yeah i received this aswell,but only a .5% rise .i rang up asking ,they said that i wasnt on a tracker and that the crowd fingal got the loans off raised there prices , i thnk they moved the goal post

It's a variable rate. It tends to track the ECB but not always. For example the last ECB decrease was not passed on.

The government's excuse, sorry explanation, can be found here.

Thanks

Juanjo