Good deal with First Active?

[anyjoesoap]

Hi,

I have a friend who just came off his fixed rate with First Active and instead of moving to a variable rate he's been put on a Standard Tracker. When he enquired he was told it was part of his contract at the time. His new current rate is 2.15% (will always be 1.15% above ECB).

He's delighted that his mortgage has come down approx 300 Euro however was wondering was there any disadvantages of not being able to move at a variable rate. The customer agent said he'd never be able to move to a variable rate.

Thanks in advance,

AnyJoeSoap

 

[NorfBank]

No disadvantages in having a tracker over a variable (well unless banks start slashing their variable rate by a bigger margin than the European Central Bank - unlikely).

Tell your friend not to worry.

If he can afford it he should try and overpay the mortgage while interest rates are low thus reducing his term and paying off the mortgage earlier. Otherwise stick the €300pm in a high savings account (if he can find one) and pay off the mortgage as the sum accumulates.