# Should I switch from tracker to fixed before ECB rates increase?



## Buttons1 (15 Mar 2011)

Hi,

I'm one of the lucky people to have an ECB tracker mortgage with KBC and I'm hearing that interest rates are due to increase around the autumn.  Should I stay with my tracker mortgage or should I switch to a fixed rate before the increases come in?

Can I write to KBC and request that on the day that the ECB announce their intention to increase their interest rates, they switch me from a tracker mortgage to their current fixed rate before any increases come in - would they do this?  Am I just chancing my arm?

I got a 35 year mortgage of 300k and am only in year 5 of it.....

Thanks!


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## tvman (15 Mar 2011)

UNless your tracker is at a very high margin over ECB you will almost undoubtedly be better off with a tracker than with a fixed rate in any likely interest rate scenario.

What rate is your tracker (over ECB)?


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## Buttons1 (15 Mar 2011)

Thanks for replying - I think it's 1.5% over the ECB rate....


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## txirimiri (15 Mar 2011)

Don't move under any circumstances. The 3 year lowest fixed rate is currently almost 4%. The ECB base rate would have to go up to 2.5% before it would be worth your while. ECB plus 1.5% is cheap money, the like of which we won't be seeing again any time soon. Hold tight!


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## Buttons1 (15 Mar 2011)

When you put it like that....it's a no brainer!  Will stick with what I have so, thanks for the advice!


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