Considering that the ECB rate is rising next month, it is inevitable that there will several further increases over the next 2- 3 years.
I realise that the banks are currently losing a significant amount of money on tracker mortgages. However, this is only temporary; say for example if the ECB rate is at 5% in 3 years time, then the banks will no longer be losing money on tracker mortgages. If this is the case, why are the banks so desperate to rid themselves of tracker mortgages?
It's really just a case of weathering the storm.
I realise that the banks are currently losing a significant amount of money on tracker mortgages. However, this is only temporary; say for example if the ECB rate is at 5% in 3 years time, then the banks will no longer be losing money on tracker mortgages. If this is the case, why are the banks so desperate to rid themselves of tracker mortgages?
It's really just a case of weathering the storm.