Is there a catch with Tracker Mortgages?

B

Babsy

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I currently have a variable mortgage with AIB 4.95% APR. Looking into changing to a Tracker. I would fall into the LTV range of 50-80% which is 4.58% APR.

Is there any reason why I should not change to a Tracker and why does everybody not get a Tracker in the first place?

Do I simply write to the bank and ask them to change it or what is the procedure?

Thanks,
Babsy
 
on a tracker the rate moves automatically with the ECB rate, on variable mortgages there is an amount of discretion on the banks behalf by how much they move the rate
 
Babsy
I've just recently changed over from Variable 4.95% with AIB to their <50% LTV Tracker Rate. my new rate is 4.35% (which inc. a margin of 60% over the ECB rate)

I too wondered why people didn't just automatically go for the tracker but it seems that the tracker rate you are on can end up more expensive than another tracker rate later introduced by that bank which may have a lower margin inc. - at least this is what I make of it from the letter i received from them....
Also, my letter states that a tracker rate may be higher or lower than the bank's standard variable....

Am I making any sense at all??!

Anyway all you need to do is write to them requesting same - but you need to inculde a valuation of your property.
 
Babsy said:
I currently have a variable mortgage with AIB 4.95% APR. Looking into changing to a Tracker. I would fall into the LTV range of 50-80% which is 4.58% APR.

Is there any reason why I should not change to a Tracker and why does everybody not get a Tracker in the first place?

Do I simply write to the bank and ask them to change it or what is the procedure?

Thanks,
Babsy
Click to expand...

Hi Babsy

Just as an interesting exercise, why don't you check out the NIB [broken link removed].

They are usually below the AIB rate, starting at ECB +0.5% for LTV <50%.

If you switch, they have a new [broken link removed], or they will also pay towards your legal fees. It means opening one of their current account packages, but there is a choice of packages.

I have no connection whatsoever with NIB.
 
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