Just looking for views of AAM on the question of : " Will a situation ever arise where paying off your ECB + 50BP Tracker Mortgage makes sense ? "
My own belief is that it is highly unlikely following the usual economic principles that it will ever make sense to pay off such a low cost loan ... any rise in ECB Base Rate is likely to be accompanied by deposit rate / wage and possible asset value rises.
I suspect there are a lot of tracker mortgage holders who have built up a substantial cash deposit and who could clear or pay down the tracker mortgage but why would they when even at current brutal deposit rates can earn more on deposit than 0.50%
Am I missing any glaring issues ?
My own belief is that it is highly unlikely following the usual economic principles that it will ever make sense to pay off such a low cost loan ... any rise in ECB Base Rate is likely to be accompanied by deposit rate / wage and possible asset value rises.
I suspect there are a lot of tracker mortgage holders who have built up a substantial cash deposit and who could clear or pay down the tracker mortgage but why would they when even at current brutal deposit rates can earn more on deposit than 0.50%
Am I missing any glaring issues ?