Thursday 20 July 2017

Lender breaks a key promise

BANK of Ireland's letter to customers is a violation of the spirit, if not the letter, of the banks' promise not to force borrowers off their tracker mortgages, writes Donal O'Donovan.

The letter apparently suggests that homeowners with tracker mortgages might switch to fixed-rate mortgages in order to "protect" themselves against possible future interest rate increases.

But most trackers specify a margin of either 0.75pc or 1pc over official ECB rates, meaning that anyone currently on a tracker mortgage is paying an interest rate of as little as 1.5pc to 1.75pc.

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