New rules on trackers
HOMEOWNERS with tracker mortgages will have to be given a clear written warning that they will lose this rate if they switch to fixed or other mortgages, under tough new rules aimed at protecting consumers.
Lenders would also have to outline the cost of repayments at the tracker rate and the new rate and highlight the advantages and disadvantages of both, under the Central Bank's proposed new Consumer Protection Code, which was published yesterday.
Around 375,000 Irish households -- half of all mortgage holders -- are on trackers, which are linked to European Central Bank rates.
There has been concern that consumers could be forced or enticed to switch and then lose these favourable terms.