Tracker margin changed between letter of offer and drawdown

[Brendan Burgess]

I have seen a case recently where the letter of offer had a

fixed rate of 4% + tracker of ECB +1%

with the following wording

The drawdown was two weeks later and the fixed rate had increased to 6%.

But they also increased the tracker margin to 2.5%

That doesn't seem right to me.

Forget the fixed rate bit for the moment. Were straight tracker offers subject to this clause "may vary between date of offer and drawdown"?

Brendan

 

[peemac]

I'll guess that this was circa late 2008 when interbank rates were moving quickly and were about 4% above ecb