They might call it their standard variable rate in that document but evidence indicates it is not a standard variable rate as we know it i.e. the bank can’t change the rate at their own discretion because documentation has shown that the variable base rate is linked to a central bank base rate (ECB base rate) with a specific margin above that rate (+1.25%). This is not a standard variable rate.Hi kbwhats goingon
Please check that the hb document is definitely the document from 2004-2008
On Jargon buster pg 47 it states
Variable Base Rate is Standard Variable Rate
This illustrates the complete misunderstanding and misconception the Minister of Finance has about banking in general and in particular, the reasons why mortgage interest rates are so high in this Country compared with our European neighbours. I am undecided if the article is propaganda or complete ignorance on behalf of the Minister.Pascal Donohue put out an article from his department claiming tracker mortgages were the reason rates here were so high yet Mario Draghi said on a recent visit it was due to a lack of competition.