# Is this a good deal:Tracker rate of 3.6% or a two year fixed rate of 3.84%



## JJJ (7 Mar 2006)

Hi there,

I have bought a property due to be completed at the end of the month and have contacted my broker again to see what rates etc. I should be going for.

I am getting the 100% mortgage and he is suggesting PTSB at either a Tracker rate of 3.6% or a two year fixed rate of 3.84% (don't offer one year rate on 100%).  Is this competitive?

I also mentioned Bank of Scotland and apparently they do desl with them but I would not get 100% with them and also the max loan to value they offer for duplexs is 90%.

Any advise really appreciated!


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## Theo (7 Mar 2006)

*Re: Is this a good deal*



			
				JJJ said:
			
		

> Hi there,
> 
> I have bought a property due to be completed at the end of the month and have contacted my broker again to see what rates etc. I should be going for.
> 
> ...


 
If the PTSB tracker rate reflects the recent hike in interest rates, then i think 3.6% APR on 100% mortgage is good value.  Are u sure this is correct, PTSB are among the more expensive finance providers in the mkt?


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## Sarah W (7 Mar 2006)

*Re: Is this a good deal*

Actually at ECB + 1.1% PTSB are the cheapest 100% providers for loans over €250,000 - the others are mainly ECB + 1.25%.

Sarah

www.rea.ie


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## positivenote (7 Mar 2006)

*Re: Is this a good deal*

we've gone with PTSB on a 97% loan and have chossen a 2yr fixed at 3.81%... not too sure but i think this is a good rate.


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## JJJ (8 Mar 2006)

*Re: Is this a good deal*



			
				Sarah W said:
			
		

> Actually at ECB + 1.1% PTSB are the cheapest 100% providers for loans over €250,000 - the others are mainly ECB + 1.25%.
> 
> Sarah
> 
> www.rea.ie


 
Thanks Sarah for this...

I know it depends on each individual circumstance but should I opt for the tracker rate or the 2 year fixed rate?  If the rates go up again and it increased my mortgage my for eg. €60 a month - this wouldn't kill me so perhaps I should go for the tracker?

Jo


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## irishlinks (8 Mar 2006)

If the EB rate goes up as expected by .25% in the summer - then the two rates will be almost the same. With the fixed rate you are then safe for another 18 months or so against any more ECB rises. Of course if rates come down - the fixed rate is not good - but it is looking like rates are going to rise to possibly 3% - so your tracker will be around 4.1%.
Check the get out penalties on the fixed rate - make sure they don't carry on after 2 years.

[broken link removed]


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## Petal (8 Mar 2006)

I am in the exact same boat and I'm also prob going with PTSB and I think I'll go with the fixed for the exact reason that Irishlinks has given... and from what I've read and heard, the ECB might do just that - another two interest hikes of 0.25% each... So the fixed would turn out a much better option in that case....


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## Paraic (8 Mar 2006)

Hi 

I would advise the 2yr fixed rate as well. The markets suggest the ECB will raise rates in june, and probably before the end of the year. There is also a good chance that rates will rise in mar07 as well. Thats 3 rate increases of 0.25% over the next year. One rate increase will be the same as the 2yr fixed rate.

Paraic@obrienfinlay.ie


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