Mortgage Rate Question

[Dogbert]

Fixed rate period about to expire and have received options letter from bank.

Am not going to fix this time, because I think rates will fall, but am curious as to whether the experts can see a reason for preferring the bank's tracker variable rate (ECB + max 1.7%) or their standard variable rate. Currently both rates the same at 5.9%.

Assuming rates do continue to fall from here, is there any reason to suspect the tracker variable rate and the standard variable rate might diverge?

Thanks

Dogbert

 

[irishlinks]

It is guaranteed the tracker will fall and rise in line with the ECB rate - but the variable rate is not tied to anything - and in coming months I would be suprised if variable rates keep up with ecb cuts.

 

[brazen_dude]

Also banks like BOI & AIB didnt pass on full ECB cuts to their variable rate... so with tracker u r guaranteed abt the slash

 

[irishlinks]

Also banks like BOI & AIB didnt pass on full ECB cuts to their variable rate... so with tracker u r guaranteed abt the slash

I think you'll find that AIB did cut variable rates for all customers. BOI didn't cut variables for new customers - not 100% sure if they cut them for existing ones though

 

[Dave Vanian]

BOI didn't cut variables for new customers - not 100% sure if they cut them for existing ones though

They did cut rates for existing customers, with the exception of those who were on "LTV Variable" (not tracker) rates. Still a very poor show after their great unqualified promise to pass on the cut.