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ECB rates down?
Posted: 11 Jul 2013 14:35
by 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.
Re: ECB rates down?
Posted: 11 Jul 2013 18:21
by Nigel Howarth
Hi Sofia,
What more information do you need?
Regards,
Re: ECB rates down?
Posted: 11 Jul 2013 21:53
by 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.
Re: ECB rates down?
Posted: 12 Jul 2013 07:11
by Nigel Howarth
sofia wrote: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,