Mortgage Rate Question

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

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.

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

brazen_dude said:

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

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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

irishlinks said:

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

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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.