Good or Bad? Options re UB Tracker ECB+1.15%

Hi all,

I have the above Tracker mortgage on a 'cheap n' cheerful' property. I bought my PPR for €145k and this has reduced over the 3 years to circa€142k. I have TRS and can easily increase my payments into the mortgage altho i do have a small (relative to the money-makeover part of this site) c-card liability.

What do/would people advise ? If advising switrching, then costs of same.

Much appreciated, thanks.

At the moment, I can't see any possible benefit to switching. You have a tracker at a smallish margin - no-one's giving trackers at those rates or better any more.

Rule 1 of debt management is that you always* pay off the most expensive debt first. Deal with the credit card debt, before anything else.

After that, it might be worth crunching the numbers to see if your return on putting the extra money into savings might work out better than over-paying the mortgage.

* For a value of "always" which assumes you don't have punitive charges to pay off expensive loans early. Comes up on motor loans and certain other personal loans.

Hang on to that tracker for dear life, pay off the credit card and then increase savings/overpay.

Was at an industry talk recently where they was a senior individual in one of the main Irish banks speaking. He described tracker mortgages as like "gold dust" and that people who have them should hold onto them tightly. They will be very expensive for banks to maintain in the current situation, and he predicted major incentives from the banks to encourage people into other products, but that they should ignore these offers.

j26 said:

Hang on to that tracker for dear life, pay off the credit card and then increase savings/overpay.

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+1. Try to get it in writing that any overpayment will reduce the capital portion of the loan; that will yield a greater saving.