Mortgage Tracker or Fixed Rate

Hi
I am just looking for some advice.
We have been on a tracker mortgage for 12years. We are now mortgage approved for €200k. The house we are buying is €320k.
The bank rang me yesterday and asked did I want to remain on a tracker at 2.25%+1%=3.25% Repayment is €1095
Fixed for 3years at 3.30%=€1098 or fix for 5 years at 3.40%=€1011.
We have been very lucky to have a tracker up to now and normally I would have jumped at the tracker but wonder should I stick with the tracker or fix it for 3 or 5years. Just looking for your views on both.
Thanks in advance.

It's with PTSB?

There's something wrong with the repayment figure for 5 years fixed in your post. The rate is higher, so the repayment should be higher.
The great thing about the tracker (while not a great rate) is that the margin of 3.25% is guaranteed for the original term.

If I was in your shoes and considering giving up the tracker I would be moving to another bank. There are better rates out there, but not guaranteed for the term.

Sorry that should be 1111 for five years.



The great thing about the tracker (while not a great rate) is that the margin of 3.25% is guaranteed for the original term.
What does guaranteed for original term mean. It is with Ptsb.
Thanks

Ah, say if your original mortgage had 15 years left,but your new mortgage is for 25 years. PTSB will only grant the tracker margin for the first 15 years. It's not for the full life of the new mortgage.

Of course we'd hope sometime over the next 15 years we'd see a better option than a 3.25% tracker.

Hi Red Onion
Thanks for your reply.
I am leaning towards the tracker as we have 18years left on this mortgage and the new one would be for 21years due to age so that would mean they would give us the tracker for 18years. Is that correct
If it was you in the same position what would you do track or fix.
Can't move to another provider as it was hard enough to get this as husband is self employed so based it mostly on my salary.

Yes, correct you'll have tracker for 18 years.

If stuck with PTSB I'd hold onto the tracker. Their current policy for rates treats existing customers very badly.

I'd expect PTSB to become a bit more competitive on rates over this year, so make sure to review it every so often if a better rate becomes available.

RedOnion said:

I'd expect PTSB to become a bit more competitive on rates over this year, so make sure to review it every so often if a better rate becomes available.

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The thing about the tracker is while you are on one, it cannot be taken off you. 3.25% +ECB is not a great one, but it depends on when ECB starts to rise and how quickly. We also have no idea how banks will react in terms of non-tracker variable and fixed rates.
You can fix or move to a non-tracker at any stage in the future - but once you do you have lost the tracker.

If I was you, I would keep the tracker until the ECB show signs of increasing rates (probably a 2-3 years down the line) and then decide what to do then.