Advise on Mortgage - Fixed or Variable?

While the last poster is correct to say that you can break a variable or tracker mortgage without penalty, the question relates to signing up to a discounted tracker with 1 lender and then choosing from their regular tracker rates at the end of the discount period.
This is not the way it works. Once you sign up for a discount tracker, you have already signed up for the "go to" rate after the discount period.
The only way out of this is to either
a) switch to another lender
b) threaten existing lender that you will move unless they give you a better rate - I would not recommend signing up for a discount rate on this basis as success is far from assured
 
Mortgageman said:
Every discount tracker rate has an associated "go to" rate which MUST be quoted on the loan contract when you sign up (required by law). It would be entirely incorrect just to assume that either
a) you can choose your own rate (from lenders available rates) at the end of the discount period or
b) that the lender casually puts you on their standard variable rate.

The only possible exception to the above would be if you "put a gun to the head" of the lender and threatened to switch if they didn't give you a better arte at the end of the discount period. I stronly suspect that you would need to have a large loan before they would cave into such a threat.
Click to expand...

The above is just not true.
I have been in touch with AIB and they told me in writing that anyone can go onto any other rate after the end of the discount - they just need to inform the bank. The default is to go on the variable - but you can opt for a tracker if you ask . I assume other lenders may operate the same way.
It's surprising really - in the UK lenders have much more penalty payments and arrangement fees.
 
From the aib.ie website - as you can see, the "go to" rate is decided at the start of the contract and is included on your loan contract in accordance with Irish law .......

AIB 1 Year Discount Tracker Rates for Owner Occupier (New Business Only) Loan to Value Mortgage Amount Rate APR over 20 years CPT/20yrs Up to 50% All amounts 4.45% 4.67% EUR 6.29 Above 50% and less than or equal to 80% All Amounts 4.45% 4.81% EUR 6.29 Above 80% Amount less than EUR 500k 4.60% 5.15% EUR 6.37 Above 80% Amount greater than or equal to EUR 500k 4.60% 4.96% EUR 6.37 The 1 Year Discount Tracker reverts to the relevant Standard Tracker rate after the discount period.
 
that didn't paste very well but the relevent link is:

[broken link removed]
 
Irishlinks - please withdraw your last post as it is factually incorrect and misleading to other users
 
Mortgageman - I can only repeat what AIB told me in writing (maybe the person who told me was wrong?) I asked about interest rate options after taking the 1 year discounted tracker and was told by AIB that ...

After the 1 year discounted tracker the mortgage will automatically switch to the standard variable. There is no penalty if the mortgage is then paid off in full.
If you want to go for the tracker rate you can do this by contacting AIB before the first year lapses. Again there is no penalty for early closure on a tracker either. The only time you would be penalised is if you closed early on a fixed rate agreement.

I am just repeating what I was told.
It doesn't match what the website says - it states that you would go onto the "relevant tracker rate" - (I suppose that's means relevant to the LTV). To avoid any confusion - anyone taking out a discounted mortgage from any lender should get in writing what the options are after the discount and if any penalties apply for repaying the mortgage.
 
my original post still apllies (despite you declaring it wrong)
When you sign up for a mortgage, the discount rate and the "go to" rate are specified in the loan offer as required under the Consumer Credit Act 1995.

Also, there is no penalty for paying off a tracker/variable loan early - also specified by law.

My problem with your post is:
a) it is misleading and suggests a scenario that has no basis in law
b) you presented it as fact, stating you had it in writing from the lender, now it transpires that you were "told" this information - bit of a difference
3) you categorically stated that my post was wrong without presenting any verifiable evidence
4) when presented with the lenders own information on the subject, you still seem to question it

I would have expected better from a "frequent poster" - it tends to suggest that you are speaking with authority on the issue
 
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