I've just posted a concern in another thread that perhaps trackers could be under threat already, as banks will now have to act withing the terms of the bailout package - and perhaps trackers are on the block??
well there wont be a collapse in the near term so relax but in the future there would need to be an admendment to your policy or it would become void if it was based on a non existant rate
well there wont be a collapse in the near term so relax but in the future there would need to be an admendment to your policy or it would become void if it was based on a non existant rate
Why would it effect your tracker rate? Has'nt there always been an ECB even before the Euro? If so, then if your on ECB+1 on contract with your bank wouldn't this continue as far as the interest rate is concerned.
Am open to correction on this...
I have a tracker with Ulster bank Ireland. As you are aware UB are part of RBOS and therefore not in the Euro. If the euro did fail, the trackers can't be affected. They are a contract that was entered into by the lender and the borrower. As such they are legally binding and will have to be honored for there duration. That is assuming the borrower does not fall into arrears thereby giving the lender a get out of prison free card. If you have a tracker protect it at all costs.
My concern would be they leave the underlying debt in Euro, but I earn (new) Irish Punts, massively devalued from my Euro debt... meaning would never be able to repay it, no matter what the rate!