Customers warned not to be 'duped' out of trackers
HOMEOWNERS have been warned not to be "duped" out of their tracker mortgages.
It came after it emerged in this newspaper that some banks are encouraging anyone with spare cash to make overpayments on the loans.
This will mean the home loan is paid off faster, but some commentators argue that this makes little sense as tracker rates are so low.
Now Labour Senator Lorraine Higgins has claimed that some bank customers could end up losing out.
She said it was well known that banks were losing money on trackers and were anxious to be rid of them.
"And for that reason I am genuinely fearful that customers will be duped," she said.
But financial experts say that homeowners with trackers are better off making extra payments when they can rather than increase the monthly mortgage payment, as it might be difficult to reduce it if circumstances change.