Mortgage Interest Rates

A tracker mortgage is a type of mortgage where the interest rate charged on the loan tracks that of a publicly available interest rate, commonly the interest rate set by the European Central Bank.

A Standard Variable Rate is a rate which is subject to change, meaning that the interest rate can go up or down subject to a variety of factors determined by your lender. While not specifically linked to the European Central Bank (ECB) rate, lenders may amend Standard Variable Rates when the ECB rate changes. This means that when the ECB rate increases or decreases, your lender may increase or decrease your Standard Variable Rate.

When changing Standard Variable Rates, Cabot Financial (Ireland) considers a range of factors, including those set out in our Variable Rate Policy Statement. Your Standard Variable Rate may increase as a result of current market conditions including recent increases applied by the ECB to address high inflation. Our Variable Rate Policy Statement is available at Variable Rate Statement

Cabot Financial (Ireland) will write to all customers impacted to provide them with information following a European Central Bank rate change, including what it will mean for them and how much their payments will change by.

If any changes are to be made to your Standard Variable Rate, Cabot Financial (Ireland) will write to you in advance, providing at least 30 days’ notice of any interest rate change. Notification letters relating to interest rate changes will detail the reason for the change and the impact of the change on your loan repayments.

It is difficult to forecast, however, it is likely that there may be further increases in line with the European Central Bank interest rate changes. We will contact impacted customers to notify of any such further interest rate changes.

Cabot Financial (Ireland) makes the decisions in relation to your mortgage, including decisions relating to changes to the Standard Variable rates. Cabot Financial (Ireland) complies with Central Bank of Ireland regulations which provide protections to customers.

You will receive correspondence from Cabot Financial (Ireland) when an interest rate change is applied to your account. This will notify you of the new repayment amount after the new interest rate has been applied, and when the new payment will take effect from.

No, if you pay your loan by direct debit, the new loan repayment amount will be automatically taken when your loan repayment changes.

You will need to amend your payment amount when you receive the interest rate change notification letter advising you of the new repayment amount.

No, Cabot Financial (Ireland) does not offer any new interest rate products. You should consider your mortgage options regularly because a different product from another lender may result in savings for you. The Competition and Consumer Protection Commission’s website (www.ccpc.ie) provides information relating to switching lenders or changing mortgage type.

The terms of any agreed ARA will remain in effect, however, the interest rate on your loan will change in line with any change in the European Central Bank rate / Standard Variable rate etc. If you are making fixed payments as part of the ARA, your loan repayment will remain the same until the end of the ARA, otherwise your loan repayment will change following the interest rate change.

If you are currently in a PIA, your expected payment may change depending on the terms of the agreed PIA. If the terms of the PIA advise that your repayment is fixed for a period of time, then it will remain unchanged. However, any applicable interest rate change will be applied to your loan, and in the event your PIA ends or is terminated, your loan repayments amount will be adjusted accordingly. We will contact you in advance to inform you of any revised loan repayment that will come into effect after the PIA ends.

Any change in ECB or Standard Variable rate will not impact your loan until the end of the fixed rate period, at which time you will move onto the prevailing ECB interest rate / Standard Variable rate (as per your loan terms and conditions).  You will receive notification before your fixed rate is due to expire to advise you of what the new rate will be and the impact of the change on your loan.

Your financial situation may have changed in recent times, if you are experiencing financial difficulties or if you are concerned about your current mortgage repayments, please contact us on 01-4649172 or at [email protected]. Alternatively, click here for further information.

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