# Tracker mortgage v's variable



## Johnboy45 (18 Jan 2008)

in a recent discussion with my bank, they are suggesting that i change my 165k mortgage at variable rate of 5.35% to a tracker style mortgage, i have 19yrs left on the mortgage, i basically don't trust the bank and feel suspicious when the bank suggest something, any one got any suggestions. Johnboy45


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## ClubMan (18 Jan 2008)

What sort of tracker margin (i.e. _ECB _+ margin) are they offering? Your variable rate is effectively _ECB _+ 1.35% at the moment which seems high. What is the value of your home?


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## twofor1 (18 Jan 2008)

You are currently paying 1.35% above ECB which is very high, today you could get a tracker rate of ECB + .5%.(if your LTV is < 50%, a bit more on higher LTV's) On €165K over 19 years you would save €76.40 monthly or €17,419 over the 19 year term. You surely have scope for substantial savings here. Shop around if not happywith current provider.


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## Johnboy45 (19 Jan 2008)

thks,home value is 450k and the rate offered was 4 plus 0.8%, (rate as in november)


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## bobk (19 Jan 2008)

0.8% is a good rate and much better than the one you are on

It will save you nearly €50 a month. Take it asap.

There are no disadvantages to taking a tracker rate over a variable. 
Trackers are generally lower

Other banks may have better rates, but take what your bank is offering while you check it out.


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## AKA (19 Jan 2008)

Tracker rates go up and down in line in line with ECB rises.  Variable rates change but at the descretion of your lender, but normally in line with ECB.  However, BOI has just increased its variable rate recently without a similiar move by ECB:

See:
[broken link removed]

I'm not sure if these changes probably apply to all variable customers but the changes to the tracker rate are only for new customers as existing customers have a fixed margin above the ECB rate.

The value of your home is €450K but what do you have left to pay on it?  This determines your LTV ratio and is used to determine what rate you can obtain.


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## twofor1 (19 Jan 2008)

4.8% is an improvement and a monthly saving of €50, but with yout LTV you could save an additional €26 monthly (€6K over the term) by changing provider to ECB + .5% especially if they pay your legal. You would have nothing to loose and €6K to gain.


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## dobsdave (21 Jan 2008)

Reading this post, I checked out my own mortgage.
I owe 177k with 27yrs remaining, at a variable rate of 5.25.
I checked the providers website and there is a tracker rate of 4.8 for my LTV and my loan amount.
It also says however that the rates quoted are for new business.

Should I ring them and ask for the lower rate, or would it be in peoples experience that you need to change providers to get a lower rate.

Thanks


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## Sunny (21 Jan 2008)

dobsdave said:


> Should I ring them and ask for the lower rate, or would it be in peoples experience that you need to change providers to get a lower rate.
> 
> Thanks


 
No, ring them. You will be amazed how nice they will be when you mention moving your business!


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## moondance (21 Jan 2008)

dobsdave said:


> Reading this post, I checked out my own mortgage.
> I owe 177k with 27yrs remaining, at a variable rate of 5.25.
> I checked the providers website and there is a tracker rate of 4.8 for my LTV and my loan amount.
> It also says however that the rates quoted are for new business.
> ...



No harm ringing them to check - say you are considering changing lender as the rate you are currently getting isn't competitive for you LTV ratio and see if there's anything they can do, I'm sure they will be willing to negotiate.


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## dobsdave (21 Jan 2008)

Thanks for the replies folks.
Edit:  Just rang them (EBS), and they are reducing my rate to 4.95 (is 5.25% now).Result!


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## Butter (21 Jan 2008)

Well done! Nobody ever has anything to lose by asking their lender for a better rate.  Worth the phonecall!


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## irishlinks (21 Jan 2008)

Dobsdave- well done for getting them down a bit - but you could have got a better rate. By my calculation you will now be repaying around 991 a month to EBS. (177k over 27 yrs) You may be paying less than you were on the variable rate (about 30 euro  a month) - but you could have done better by moving elsewhere. You must have an LTV of between 60 and 80% according to the info you gave earlier. You could have got a rate of 4.53 off NIB on an LTV of just over 60% - a potential saving of 44 euro on the new rate EBS|have given you. (Total saving based on the original rate of about 74 euro a month or about 900 a year) Even Halifax would have given you a better tracker rate of 4.7%. Both of these lenders would pay legal fees too.


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## ClubMan (21 Jan 2008)

Presumably there is still nothing stopping him switching to another lender unless he opted for a fixed rate which I don't think that he did?


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## dobsdave (21 Jan 2008)

ClubMan said:


> Presumably there is still nothing stopping him switching to another lender unless he opted for a fixed rate which I don't think that he did?


 
Correct Clubman.I'm not on a fixed rate.

Irishlinks, thanks for the info.

My problem at the moment is I'm working in Germany until June.
And no matter how easy they make out, changing your mortage isn't just signing on the dotted line.
I will definitely be making further enquiries come June.

Thanks for all the help.


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## ClubMan (22 Jan 2008)

dobsdave said:


> And no matter how easy they make out, changing your mortage isn't just signing on the dotted line.


Why? What potential hassle are you seeing?


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## dobsdave (22 Jan 2008)

ClubMan said:


> Why? What potential hassle are you seeing?


 
Sorry, I didn't write what I meant!
Looks like I was trying to say that signing a form was a big hassle!
As I explained I'm in Germany untill June, coupled with my work load, trying to organise a change of mortgage provider would be a hassle for me at the moment.

Rest assured I will be making further savings in June .


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## Tony (22 Jan 2008)

dobsdave said:


> Sorry, I didn't write what I meant!
> Looks like I was trying to say that signing a form was a big hassle!
> As I explained I'm in Germany untill June, coupled with my work load, trying to organise a change of mortgage provider would be a hassle for me at the moment.
> 
> Rest assured I will be making further savings in June .


 

why not get them to fax over the docs, you sign them and then post them back. That is hardly a lot of hassle and could potentially save you 385 between now and june. I completed my mortgage application from the Netherlands and it cost me about €2 for a postage stamp. 

Alternatively for the small fee of €385 tell me where to be and when and i will forge your signature  (obviously joking mods!!!!!)


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## oakrise (22 Jan 2008)

Reading the thread, can I just ask this question, I only took up a mortgage in November with ptsb on the tracker rate of 5.1%. At the time they offered the best interest rate for a first time buyer with 100% mortgage. The question is could changing of mortgage provider for a better rate be an option at this stage. I am just curious, the amount is €197k over 34years.


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## Stifster (22 Jan 2008)

I wrote to my PPR lender AIB last week to ask to be put on the lower Tracker rate, within 2 days we had confirmation that the next installment will be reduced by about €100.

In fact we were probably entitled to be on the lower rate for some time but it was  only when i as talking to someone in there that they pointed it out.


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## Sunny (22 Jan 2008)

oakrise said:


> Reading the thread, can I just ask this question, I only took up a mortgage in November with ptsb on the tracker rate of 5.1%. At the time they offered the best interest rate for a first time buyer with 100% mortgage. The question is could changing of mortgage provider for a better rate be an option at this stage. I am just curious, the amount is €197k over 34years.


 
You could try but you might be limited by the 100% mortgage. Not many banks are doing them anymore


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## dobsdave (22 Jan 2008)

Tony said:


> why not get them to fax over the docs, you sign them and then post them back. That is hardly a lot of hassle and could potentially save you 385 between now and june. I completed my mortgage application from the Netherlands and it cost me about €2 for a postage stamp.
> 
> Alternatively for the small fee of €385 tell me where to be and when and i will forge your signature  (obviously joking mods!!!!!)


 
Will you do it for 250 Tony?
Seriously, You were able to do all the transactions from the Netherlands?
When I remortgaged, I applied by phone, but when it came to the crunch I had to go to my EBS branch and also go to the solicitor for it to be witnessed.
Have things changed that much?


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## Stifster (22 Jan 2008)

dobsdave said:


> Will you do it for 250 Tony?
> Seriously, You were able to do all the transactions from the Netherlands?
> When I remortgaged, I applied by phone, but when it came to the crunch I had to go to my EBS branch and also go to the solicitor for it to be witnessed.
> Have things changed that much?


 
Generally there is no need to go near the bank, you will need to get docs sworn but that can be done by a lawyer in another country.


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## dobsdave (22 Jan 2008)

Stifster said:


> Generally there is no need to go near the bank, you will need to get docs sworn but that can be done by a lawyer in another country.


 
Maybe its just the EBS, but I _had_ to go to the branch, there wasn't an option.
Maybe its done differently elsewhere.

Thanks for all the help and advice folks,

Now back on topic,sorry for the hijack........


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## Joe Nonety (22 Jan 2008)

I've seen some comments where people said you can't switch mortgage providers if you've a 100% mortgage. Is that true? I thought you might be able to switch in a case where the loan to value had gone down to approx 80%?


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## Sunny (22 Jan 2008)

Joe Nonety said:


> I've seen some comments where people said you can't switch mortgage providers if you've a 100% mortgage. Is that true? I thought you might be able to switch in a case where the loan to value had gone down to approx 80%?


 
I am sure you can but I can't imagine there are many people who took out 100% mortgages in the past year enjoying a 80% LTV unless they paid off some of the capital


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## Joe Nonety (23 Jan 2008)

Ok thanks. The 100% mortgage has been for around 2 ½ years now (longer for certain professions).


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## Sunny (23 Jan 2008)

Joe Nonety said:


> Ok thanks. The 100% mortgage has been for around 2 ½ years now (longer for certain professions).


 
Even with two and half years, I would question what the LTV is on certain properties with 100% mortgages.

The 100% mortgages for professionals and public sector workers are still on offer with most banks I think.


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