Tracker Rate offered on Investment Mortgage

BlueButton

Frequent Poster
Messages
27
Hi Folks,

Just want to get your opinion as I've recently come out of a fixed rate on my RIP mortgage. I had fixed it 3 years ago at a rate of 4.69% which was due to finish at the beginning of Oct. I was expecting them to let me know the new rates / options available but heard nothing.

Before I rang them, I checked the Letter of Offer and the only options available were a variable or another fixed rate.

However, when I rang they told me I'd been put on a tracker rate of 4.35%. The rate was 3.35% + 1% ECB. I asked what the variable rate would be and they quoted me 4.45%. While my repayments have decreased somewhat I'd have thought the margin would be lower.

I didn't want to query it in case I'd been given a tracker in error. Is a margin of 3.35% quite high - even for an investment mortgage?

I'd appreciate your advice.
 

landlord

Frequent Poster
Messages
892
Seems a bit high to me. I am on 1.75% (ECB + 0.75%) for my investment mortages. I am not sure what the current rate is averaging???
 

wino

Frequent Poster
Messages
73
Maybe I'm missing something but I couldn't get a tracker mortgage for an investment property I have after coming off a very good tracker last year. I'm paying nearly 6% to Haven for an interest only mortgage (euribor rate). Can I ask who you are with because I seem to be doing something wrong here, perhaps you're not doing too badly?

wino
 
A

Affy

Guest
My understanding is that trackers are no longer being offered by financial institutions - for either domestic or investment loans. Advice is to hang on to it if you've got it.

I am in dispute with our bank who are trying to wiggle out of an "ECB plus agreed margin" deal on an investment mortgage. Anyone else running into this problem?
 

landlord

Frequent Poster
Messages
892
I have a few with NIB. To be honest I have many friends all on similar rates with various different banks and they are not being forced onto different rates. My contract guarantees .75% above indefinately
 

BlueButton

Frequent Poster
Messages
27
Thank you for your replies. I really appreciate your comments.

I'm with PTSB and was on a 3 year fixed rate since the start of the mortgage. I never had a tracker and there's no mention of a tracker rate on my Letter of Offer.

I was very surprised when told they'd automatically put me on one, especially as 'new' tracker rates are now extinct. However, the margin quoted of 3.35% seemed quite high. (I haven't received anything in writing confirming I'm on a tracker or the margin/rate).

PTSB is blazing a trail in hiking their variable rates and all other lenders will follow. It seems they can charge what they like, despite Government bail-outs and guarantees.

When the ECB start changing their rates, they will go one way - upwards, for the foreseeable future. I'm probably best to stay with my 'high-margin' tracker.
 
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