Ulster Bank, First Active and Permanent TSB have all increased their rates. On the same day. Total coindicence.
I do believe this was also predicted on the Pin. Pity nobody takes any notice.
This has to be my favourite bit. Imagine to think that people need to check the details of the largest investment they have ever made to see if this applies to them.
Sadly this is the truth since most people would have paid more attention to the details of their holiday insurance than silly things like variable rate or tracker.
These same people are now being lumped with additional interest payments. Off which up to 40% will be paid by the Irish Taxpayer. The same people that were instrumental in selling mortgages are now advocating that mortgagors inquire of the lending institution as to what kind of mortgage they have.
Couples who borrowed and now find themselves in negative equity have to pay more. Why! Because members of the Financial Community do not trust one another! These same institutions have been getting billions from the ECB to ease the credit squeeze etc.
What is our government doing to protect our young mortgagors against this unscrupulous exploitation? Nothing! And their popularity is going up in the polls according to the news this evening.
What kind of opposition is there in Ireland that seems to be in a permanent state of Rigor Mortis as regards the greatest Financial Scandal that is being perpetrated on the Irish People? Do they know what is going on? How can they keep taking such salaries and continue to do nothing, year in, year out! Have they a brain between them? This country is being run into the mire because the opposition is virtually non existent 
I’m not saying the government are right or wrong, but they’re damned if they intervene at this stage and damned if they don’t…
The days for their needed intervention are long gone IMHO.
Sorry to be such a dumbo, but this applies to existing mortgages, right?
The more I think about it, the more I’d like to see some kind of mandatory pre-mortgage course for first-time applicants.
For such a commitment, who would refuse say ten one-hour sessions of impartial financial, legal, economic history, tax advice ?
After all people who want to get church-married willingly put in that much of their time. We submit to it in order to get a driving license.
When it all finally spectacularly goes up, I wonder if there’s a role for the pin as an advocate of financial literacy for all. Maybe to even shape what such an education would look like.
For variable mortgages, I believe you are right. For ECB trackers, I believe there is a spread fixed in the mortgage contract.
I met a recent house purchaser. He told me that he asked the mortgage adviser for a ECB + tracker but was given a EURIBOR+ without being told the difference. If there ever was a case of Caveat Emptor, this is it. The culprit is not faceless International Financial Buccaneers but your friendly mortgage adviser, who are now advising their clients to inquire as to what kind of mortgage they have. Regulated my arse!
There seems to be a ‘redefinition’ of tracker going on. In the twenty years that I have owned property, a tracker to me has always tracked central bank rates. Now there seem to be moves afoot to redefine tracker as tracking Libor or Euribor.
Wow , who is selling Euribor trackers in Ireland then …I admit its the future but a Euribor tracker today would cost 6% or so ???
Imagine the commission on that bad boy…
MortgageBroker refers to them here:
thepropertypin.com/viewtopic … highlight=
I haven’t heard that they’ve come in yet, but I haven’t looked. WTTR seems to have found the first one
Add this to the BBA cracking down on misreporting of borrowing costs and you have some serious readjustment of mortgage pricing going on in Ireland. What the ECB does now is irrelevant. The banks are doing their job for them. As you point out in the same thread, euribor trackers are the norm in Spain, so both frothy markets are being hugely hit by the banks.
My friend told the Independent local mortgage advisor that the loan wanted was Tracker LTV<50%. ECB+0.755 for the term. The advisor initially showed numerous repayment products of a particular Bank. Some how after the mortgage adviser submitted the application to the Bank, one of our main ones, the terms changed? My friend questioned this change, but was then subjected to some kind of fudge, three card trick if you like, and as he had not a Master of Banking degree was not in a position to argue. My friend is a very hard working man, signed the loan agreement. I asked him to show me the loan agreement. He subsequently showed me the Offer Letter. It says Variable at 4.75%, and in the smallest of small print, the following words appear
Sounds more like he was screwed by the advisor!
He asked for a tracker and got standard variable with the Base Capped at 0.1% over 1 Month Euribor but tracking nothing .
2Pack, that’s NEVER less than 0.1% above 1 month euribor, not never more - they’ve put a floor on the interest. In essence, they can charge what they like, unless there is a cap somewhere else in the offer letter. WTTR?
Its not a tracker, thats for sure 
“Bait and switch” is a standard sales trick used in banks. Walk in and ask for a tracker and theyll say “Sure, here you go” and hand you a variable with a high minium rate.
They do similar things with savings rates. One major bank was advertising a special rate fixed term savings deposit account last year. When I tried to avail of it they almost insisted that I avail their investment funds instead. They made it so difficult to actually get the product they were advertising.
Now there I agree with you totally!