is 5% mortgage interest rate FIXED for next 2yrs good?

[JWMB]

Hi All,
Our interest rate is being put up this month to 5%(we're on tracker rate with IIB), they've given us an option of a fixed rate of 5% for next two years...which sounds very attractive as it's about to go to that rate anyway..but we're kinda wonderin whats the catch??...Do they think interest rates will be going down over next while?..We're not sure what the outlook is on interest rates for the next couple of years and are unsure what to do, dont want to loose out on this option either if it is good? any advise apreciated.

The catch is IIB are getting away from trackers!. If you can access your original loan offer with them I would. They might have a clause in it stating that they can switch to a euribor tracker more or less at their own descretion depending on the comparison between the euribor base rate and the the ECB base rate. It's worth asking them what will happen if you don't take this fixed rate. They seem to be offering fixed rates to existing clients at the mo. I hope this helps

 

[AndyDub]

The bank wants you off the tracker rate, plain and simple. Once you've moved to another rate you can't go back. Tracker mortgages are costing banks in the current climate, so its no surprise they are trying to 'help' you. I've a tracker at ecb +.9 , ICS have tried a couple of times at this stage to give me a 'better' rate. No thanks!

 

[fobs]

We have a tracker with first active as ecb +.75% and was told they definately are not offering anything like this now or in the near future. I would also stick with the tracker rate if possible.

 

[irishlinks]

The OP has already said he is sticking with the tracker !