Alan Ahearne: Banks need a solution to tracker dilemma as economy is suffering
Remember the Financial Regulator's ad in the bubble years in which a guy stands up in a bus and admits that he doesn't know what a tracker mortgage is. If he had bought a property around that time using a mortgage product other than a tracker, he would now sorely regret that lack of knowledge.
Compared with other mortgage products, trackers have been a boon for borrowers – and a bane for banks, taxpayers and the economy.
The average interest rate on a tracker is about 1.25pc. This assumes a margin of 1pc over the ECB's rate and compares with an average rate on a variable-rate mortgage of about 4.5pc.