Mortgage Renewal

Hi all, first time poster.
Got our mortgage renewal today and if I don't adjust it, it rolls into a standard tracker mortgage with a 2.15% rate. I rang the company and basically my payment would go from €1010 a month, to €840 a month (and that doesn't include TRS)

All sounds like a good deal, but is it too good to be true, given that its attached directly to the ECB for rates.

Anyone else in a similar boat, or got any advice?

Cheers

I assume it is ECB Tacker at ECB + 1.15, the days of +0.50 are long gone. You will not get better than that in todays market. The banks want to get rid of the ECB Trackers as they are costing them money. To be honest I a suprised they even allowed you back on to a Tracker from a Fixed rate, as they are up a all sorts of tricks to get people off them.

Advice: Get in writing that they are giving you a ECB Tracker at ECB + 1.15.

Cheers for the reply. According to the documentation its a Standard Tracker Rate Default Option (2.2%) and the lender is giving it at 2.15%

We've always been on a fixed rate for the last number of years, So I take it this is a good deal then? Because it all seems to be too good to be true

It's a good deal - don't lose it.
Don't waste the spare cash though - put it aside for when rates start to go up.

Cheers! Good point about not wasting it! Even though we can't predict the future, its quite unlikely that there would be a 2% hike in the next 12 months surely?

vb2010 said:

Cheers! Good point about not wasting it! Even though we can't predict the future, its quite unlikely that there would be a 2% hike in the next 12 months surely?

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Probably not in the next 12 months - but maybe in the next 2 to 3 years.

Thats what I was thinking and the €125 that they'll charge me to move to fixed will be in the bank (in theory anyway )