Mortgage tracker rates - better option?

hi guys

total novice here but i've had an offer letter from ICS
i've looked at their rates and the options are:

ICS Tracker 110 Rate: 3.1% APR: 3.1%
OR
ICS Discounted Tracker Rate: 2.5% APR: 3.3%

Ok now the question is obviously the discounted tracker rate is better but in the long run is the lower APR the way to go? Sorry if I sound stupid, I just don't have a clue! In Karl Jeale's Mortgage calculator do you input the rate of the APR?

Clearly the discounted tracker is the better option of the two shown here while the discount lasts.

The real question is what will happen after that period? Are they guaranteeing that you can switch to the other tracker at that point?

However, it's only good value if the rate you end up on after the early discounts run out is the best available to you. To find this out, you need to trawl the Best Buys lists.

Do not be seduced by introductory discounts.

according to SB Post archives
"After 12 months it then rolls to the ICS Tracker variable rate of ECB Repo rate plus 1.3 per cent (or 3.30 per cent variable)"
so it goes up to 3.3%, would I be then better just to ignore the discount and go with the 3.1%

For the first four years of the mortgage, the 2.5% / 3.3% combination is cheaper overall. Anything after four years, the 3.1% rate is cheaper.

So if you feel you're going to be redeeming the mortgage within four years, go for the former. Otherwise, go for the latter.

Liam D Ferguson
www.ferga.com

as the mortgage is for 30 years (!!) I think we'll go with the 3.1%
thanks for your replies

Can someone explain to me why or how the tracker rate of 2.5% gives an APR of 3.3%? whereas the other tracker has 3.1 / 3.1? Does the 3.3% refer to the longterm expected APR without the discount?

See this thread. There are a few other previous discussions of the ins and outs of APR, how it relates to the nominal rate and how it better reflects the true/overall cost of a loan and is useful for comparing different loans.