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Ptsb tracker Mortgage Ecb rate cut

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  • 04-07-2014 4:49pm
    #1
    kk2012
    Registered Users Posts: 58 ✭✭


    i have a tracker mortgage which is 1.25% + Ecb rate
    i read this last cut will have a saving of 6 euro per 100,000 mortgage
    i have a mortgage of 150,000 and i see today the saving is 3.50 euro
    has anyone else had anything similar
    obviously its not much, i just wonder how they work it out is all


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    #2
    Nervous Wreck
    Closed Accounts Posts: 16,115 ✭✭✭✭Nervous Wreck


    kk2012 wrote: »
    i have a tracker mortgage which is 1.25% + Ecb rate
    i read this last cut will have a saving of 6 euro per 100,000 mortgage
    i have a mortgage of 150,000 and i see today the saving is 3.50 euro
    has anyone else had anything similar
    obviously its not much, i just wonder how they work it out is all

    Presuming this is a saving of €6 per monthly payment, the source of this information is fallacious. It couldn't be standardised because the terms of peoples' loans vary. I.e. The savings on a payment on a 20 year term is gonna be different on that of a 25 year term.


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    #3
    murphaph
    Registered Users Posts: 19,020 ✭✭✭✭murphaph


    Nervous Wreck wrote: »
    Presuming this is a saving of €6 per monthly payment, the source of this information is fallacious. It couldn't be standardised because the terms of peoples' loans vary. I.e. The savings on a payment on a 20 year term is gonna be different on that of a 25 year term.
    Regardless of what term is left on your mortgage you can say with certainty that a reduction of x % interest on an outstanding 100k will mean a reduction of y % in the annual payment. You just divide that by 12 to get the monthly saving. That's all they mean when they say that stuff.


  • Options
    #4
    bee06
    Registered Users Posts: 4,514 ✭✭✭bee06


    kk2012 wrote: »
    i have a tracker mortgage which is 1.25% + Ecb rate
    i read this last cut will have a saving of 6 euro per 100,000 mortgage
    i have a mortgage of 150,000 and i see today the saving is 3.50 euro
    has anyone else had anything similar
    obviously its not much, i just wonder how they work it out is all

    OP, are you in receipt of TRS by any chance? Because TRS is based on how much interest you pay so if the interest rates go down you get less TRS which reduces the impact of the rate cut.


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