Mortgage annual rate review - euribor +1% - I don't think so ....

I know this has been covered in the past but I just don't understand how a rate with Banco Popular / Banco Andalcuia of Euribor +1 % can result in a rate review on 4th feb seeting the new rate at 4% when the Euribor rate has never been much above 2% during the preceding 12 months.  It's not as if 4% is the collar as our first rate back in 2007 was 3.75%.  If anyone else has the same problem or has maybe taken it up with the bank then i'd be interested to know how you got on.

Steve

www.duquesa-village.com

 Updated 7th Feb 2012

I've just been through my original documentation and found a reference to an introductory forst year rate of 3.75% and a 4% collar after that so that would explian it.

 I have the same problem, I went for the same mortgage, there was a choice of 2 types at the time.

The only benefit to this mortgage is no penalty for early repayment so if you can get a loan some where else you might save money.