Best mortgage

[Orga]

Hi all,

About to purchase a house for 300k, borrowing 250k over 30 years. Would expect to be able to put extra cash in to pay the mortgage, maybe euro400 per month. Getting a rate of 3.5% APR, tracker with a 1% margin over the ECB rate. IN light of JC Trichet's remarks and the potential rate rise of 0.5% next month, am I doing ok? Any better value out there?

Thanks

 

[marksa]

Hi,

Given that JC Trichet has signalled a hike is on the way for the ECB repo rate, you are looking at 3.75% on 8th June. Most commentators reckon on further 25bps on the quarters - September and December. This would leave you at 4.25% by Christmas.
Have you stress tested to this level using the www.jeacle.ie/mortgage mortgage calculator? In any case, if I was you, I'd try to get a fixed rate offering in the 3.75-4.00 range. We have moved off the historic lows of the last 4-5 years, and people really have to start thinking of other than Tracker mortgages.
If you have surplus cash, your would be able to put it into a ECB tracking deposit, there are a nunber out there such as Northern Rock and NIB which offer instant access at ECB + 100bps depending on amount invested. In the case of NIB [broken link removed], they also have a fixed rate mortgage offering which would be among the best around - don't be fooled by their APR, as it is factoring in their less than competitive Standard Variable Rate for the remaining life of the mortgage, which only a fool would take - let the fixed rate mature and switch to a tracker or another fixed then, depending on value for money.

2 Year Fixed 3.8%
3 Year Fixed 3.95%.