MSE News: When is a tracker mortgage not a tracker?

HAMISH_MCTAVISH

2sides2everystory wrote: »

I have corrected it above, but you'll need to correct yours above and the other one ...

Cheers.

Now corrected. I forgot links get truncated when you copy them!

There's a lot of threads going at the moment on this topic between all the various lenders trying it on, and linking to that info may be helpful for them.

tjj1984

Hi
i spoke to Bank of Ireland this morning as my mortgage is up for re newal end of next month
i was currently on a 3 years fixed at interest rate 6.02% paying £586 PM
the lady informed me i would automaticly go on to their Tracker mortgage
at 2.49% now id be paying £377 PM. which is great
Just it sounds too good and easY?

will i be paying £377 PM for a while then suddenly be paying 100s more like 800PM? i would not want that

Any info. advice is appreciated thanks i just need peice of mind before commiting to a Tracker

jimjames

HAMISH_MCTAVISH wrote: »

Consumers should check their mortgage contracts carefully.

In some cases, changes to the rate may be unfair/illegal.

https://forums.moneysavingexpert.com/discussion/3920181

Definitely worth checking contracts. I looked at mine yesterday to see what scope they have for increasing. Our tracker is currently below the floor set in the contract and I'm expecting that this may revert back to the contractual interest rate in the not too distant future.

It was rather interesting to see that one clause in the contract is that the agreement will revert back to the Base Mortgage rate if you stop paying by direct debit. As the BMR would be lower than the revised tracker rate I can see a few cancelled DDs in order to make this switch although I'm assuming they put it in the contract originally as a penalty not a get out for the borrower.