Central Bank plan will benefit all sides
BANKS have been trying to part homeowners from their tracker mortgages for years.
So the Central Bank plan can be regarded as a huge breakthrough for the lenders, even if their ability to remove trackers will be severely limited.
Tracker rates are very valuable to homeowners. The interest rate is linked to the European Central Bank lending rate, and can only move when the ECB changes rates. Also, most tracker rates are set at a very low level. This means some tracker-holders are paying as low as 1pc on mortgages.