# ptsb tracker of 4.25% or variable of 4.25%?



## steps_3314 (9 Nov 2009)

Can anyone help me decide?

So basically my 3 year fixed rate term expires mid November 2009 and PTSB has presented me with the following options

LTV @3.65% (Meaning mortgage would be approx 200 less a month)
Tracker @4.25% (Meaning mortgage would be approx 100 less a month)
And some other fixed rates which are 5% + which i will ignore.

I find it strange as i have reading threads on the net and alot of people have being offered tracker rates lower than the LTV in which case then it would be a no brainer.

Although the LTV looks a better deal i keep hearing that the tracker is the way to go as once you turn it down you will never again get offered it.

However i know the cons of the variable also as this could rise significantly in the long run.

Im leaning towards the tracker at least i will have a rough idea of where im at.

Any advice appreciated


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## plant43 (9 Nov 2009)

This has come up with PTSB before - you should check your loan offer documentation, you may entitled to a lower tracker rate.


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## steps_3314 (9 Nov 2009)

plant43 said:


> This has come up with PTSB before - you should check your loan offer documentation, you may entitled to a lower tracker rate.



I will check with my broker now and if he doesnt ill goto the bank or maybe the solictor has a copy


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## LDFerguson (9 Nov 2009)

Assuming you're not entitled to a better tracker, one of the main things to consider is that with a tracker, PTSB can't unilaterally put up your rate - it can only go up when the ECB put up rates.  The LTV rate, while dearer, can be put up by PTSB any time they want to increase their margins.


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## steps_3314 (9 Nov 2009)

This is why i considered the tracker but the rate they offered is poor and more expensive. Variable rates will inevitably go up but i think the ECB will also raise theres as the European economy picks up next year and 2011.


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## househunter! (11 Nov 2009)

hi steps 

those rates are awful . is this your own home or an investment . if an investment -rates will be higher but it would be a good idea to shop around see who can give you the best rate . obviously depending on ur circumstances to meet new lending conditions and to get the mortgage with another company


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## NorfBank (11 Nov 2009)

Don't underestimate the value of the tracker. 

Although it may seem expensive, here the old adage holds true: you get what you pay for. 

Don't solely look at the short term rates issue, I am presuming your mortgage has a lot more than 5 years to run. Say it has 25 years to run, that means that if you go for the variable rate you are at the mercy of the banks for the next 25 years as to whether they increase rates arbitrarily and whether they pass on the ECB rate reductions when they occur. You go for the tracker and your rate must follow the ECB. The whim of the banks or the certainty of the ECB...I know what I would opt for.

As househunter! said those rates are awful, if you would prefer a variable rate and your loan to value (mortgage outstanding versus current value of property) is less than 92% then you could get a variable as low as 2.65%. If you are stuck with PTSB then think carefully before you ignore the tracker.

[broken link removed]


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