ECB rates down?

[sofia]

Need more information : just got a letter from my bank where I have my house loan, announcing the decision of the European Central Bank's decision to decrease the repo rate from 0.75% to 0.50 and the increase of the interest margin by 0.25%, this concerns loans granted prior to 01.01.2008.

[Nigel Howarth]

Hi Sofia,

What more information do you need?

Regards,

[sofia]

Hello Nigel,
loans before 2008 had already better rates than after 2008/2009, mine was on 2005 and has 4.25%, comparing 6.50% that banks were rating after. Do you think we are going to do a new contract? because when i signed my loan it was written that the margin is fix and will not change till the end of the loan.

[Nigel Howarth]

Do you think we are going to do a new contract?

I can't second guess what the bank is going to do - but if the margin is fixed, they will not be able to change it unless you agree for them to do so in a new contract.

If it's a variable rate mortgage, you may find they change the interest you are paying.

Regards,