Tracker Mortgage: All But Gone

The number of mortgage packages available on the Irish market has dropped by a third in the last year, new figures have revealed.

Lenders have reduced loan-to-value products significantly since last year, according to the Irish Mortgage Corporation.

Market trends became apparent around the emergence of the 'credit-crunch' last August, prompting the fall in underwriting acceptance.

Many lenders have already begun to scale-back on tracker rate mortgages.

Yesterday the Bank of Scotland (Ireland) confirmed it would withdraw tracker products for new customers next month.


The bank's Head of Home Loans, Bernard Kingston, said: "We are reluctantly withdrawing our tracker products. They were a real hit when we first introduced them seven years ago and still are today. Unfortunately, the turmoil in the financial markets makes them no longer commercially viable."

Frank Conway, Director at the Irish Mortgage Corporation, said the decision to ditch the product, which he claims was a drain on banks' finances, is a decisive move.

Leeds Building Society is the only lender still offering tracker mortgages, according to Mr Conway.

He said: "In recent years, anywhere from 350,000 to 400,000 tracker mortgages were taken up by Irish homeowners.

"Many of those tracker mortgages were given out at between 0.95 - 1.1% over ECB constituting a significant cost to mortgage lenders based on today's cost of funds," added Mr Conway.

Allied Irish Bank has also discontinued tracker mortgage products in recent weeks.

(PR/JM)