Keep my tracker or give it up?

Hi All,

If anybody can give me advice on whether to keep my tracker it would be much appreciated. My position is this...

I have a tracker mortgage currently with PTSB at 1.1 percent, there is 220k left on the mortgage, over 20 years. We are moving house and need another 195k.

PTSB will give me a tracker portability at 2.1 % then 2.5% on the new part of the mortgage with no cash back, 3yr fixed. Or 3yr fixed with a 2.5 % rate with 8k cashback if we give up the tracker. The guy then kind of back tracked and mentioned I could get cash back on the 195k part of the mortgage of about 4k

I am unsure if I am better off leaving the tracker and going with ICS 2.35%, Avant or giving up the tracker and staying with ptsb and taking the 8k cashback and mortgage at 2.5% .

I seen ICS though had lower rates 2.35%. So I am confused as to what to do?

if i stay with the tracker, What happens if PTSB rates are not the most competitive on the market after 3yrs fixed and I am tied to them because of the tracker. Could it be a case where I end up leaving them anyway to get a lower rate and miss out on the 8K cash back. Hard to know as they say never to give up a tracker, what happens if interest rates increase alot, then it would be worth keeping. Is that going to happen? Where is the crystal ball?

Any help on this would be great.



Thanks

It's very difficult to understand what ptsb is actually offering. You should apply for it and get the offer in writing.

What will your Loan to Value be?
What is the price of the house you are buying?

As I understand it, you are entitled to
1) a tracker porter rate of ECB +2.1% on €220k over 20 years
+2) €195k at their new business rates.


They have a 4 year rate of 2.25% but they don't give cash back on that. So you could fix the €195k and get no cash back

Or they have a 3 year rate at 2.55% with cash back of 2%.

The problem is that you would be stuck with permanent tsb.

ECB +2.1% is worth something. But I am not sure how much it is worth.
But permanent tsb exploit their existing customers with very high rates, so you would have to switch the lot to get a decent rate.

3 years at 2.55% = 7.65% -2% cash back = 5.65% /3 = 1.9%

That seems better than fixing for four years at 2.25%.

They also have a 5 year rate of 2.55% with 2% cash back for loans over €250k. Could you borrow €250k, get the 2% cash back, and then pay back the money you don't need. If you do it quickly, there should be only a very small early break fee which should be covered by the 2% cash back.