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Thread: I don't know why a tracker mortgage is costing banks

  1. #1
    Politics.ie Member
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    Default I don't know why a tracker mortgage is costing banks

    Maybe I am being too simplistic but this is how it looks to me.

    The bank borrows 100000 from ECB at 3% over 20 years - they then repay this
    Mary borrows 100000 from the bank on a tracker 3% plus% and repays it monthly over 20 years.

    Is the bank not making a 1% profit?

    The bank has 100000 on deposit and pays 1% interest
    It lends the money out on a tracker at 3% plus 1% - is this not a 4% profit?

  2. #2
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    ECB rate is 0.75%, not 3%.

  3. #3
    Politics.ie Member Disillusioned democrat's Avatar
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    My TM is something like 1.6% - can't see bank making a brass cent on that
    The more things change....

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    Politics.ie Member firefly123's Avatar
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    Quote Originally Posted by Disillusioned democrat View Post
    My TM is something like 1.6% - can't see bank making a brass cent on that
    I insist you pay more tax because you have it slightly better than me!
    Life is hard
    That's why no-one survives

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    Mine is ECB + 0.9% and like yourself DD, I don't see the bank making money on that.

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    Quote Originally Posted by firefly123 View Post
    I insist you pay more tax because you have it slightly better than me!
    Sounds reasonable to me

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    I don't know what a tracker mortgage is.

    (Geddit?)

  8. #8
    Politics.ie Member Disillusioned democrat's Avatar
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    Quote Originally Posted by Ryan Tubbs View Post
    I don't know what a tracker mortgage is.

    (Geddit?)
    Seemingly too many people in Ireland didn't know what a tracker mortgage was - it was a lifeline to anyone who didn't trust the Irish banks to do the right thing.
    The more things change....

  9. #9
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    I think they need to publish the names of everyone in the country with a tracker mortgage, the feckin parasites
    The true "front line workers" are the private sector paye employees who are first to take the bullet. Cannon fodder for their state and the public sector.

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    Our bank certainly cocked up, they were that desperate to shove money into peoples pockets that a tracker mortgage was the first thing they offered us.

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