Offered Tracker rate, should I take it?

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drummr08

Guest
My fixed rate two year period with ICS expires at the end of this month.

They've offered:

Tracker Variable ECB + 1.25% which ICS has told me will work out at 5%
Standare Variable Rate of 5.79%.

(They haven't said anything about the option of a new fixed rate)

Apparently all offers stand and I've two weeks to decide what to do.

I know that most banks have now withdrawn their tracker options which would lead me to believe that I should take it if it's on offer.

Any views?
 
Personally, I would take it ASAP, unless you have strong reasons for fixing another rate.

Betsy
 
I would advise to take the tracker as well, banks are withdrawing tracker mortgage offers a lot at the moment so grab while you can!
 
Do your sums first - if you'll be stretching yourself to pay the mortgage each month, then the fixed rate is the safer (but more expensive option). If you have a bit of wiggle room, then grab that tracker and run!

There's no guarantee that the ECB rate won't go back up very soon, but most indicators seem to be that it will stay as is for a while. Some are even forecasting further cuts. The fact that banks are withdrawing offers of tracker mortgages seems a good indicator of this!
 
In the exact same position with the same bank as the op, pretty certain I'll be taking the tracker offer, but I'm unsure on the downside as opposed to a fixed rate....can i leave the tracker to fix or variable easily or is there a penalty clause involved like breaking a fixed term carries?
 
Take the tracker, if banks are getting rid of them, it's a sure sign that you should take it.
IF you want to go on a fixed rate while on the tracker you can do so without penalty. There may be an admin fee so check your terms and conditions.
 
NorfBank said:
Take the tracker, if banks are getting rid of them, it's a sure sign that you should take it.
IF you want to go on a fixed rate while on the tracker you can do so without penalty. There may be an admin fee so check your terms and conditions.
Click to expand...

Thanks, now just have to try to convince them to take my father off as a garantor, could do without his 100 euro life policy to pay every month also....chances are slim though as i'm a contractor and they don't care about my rent a room income :) Sad when you specifically choose a solid renting area to buy in!
 
NorfBank said:
...so check your terms and conditions.
Click to expand...
Also worth checking the Ts&Cs to see if there is an option for the bank to switch from tracking the ECB rate to the Euribor rate in certain circumstances.

[e.g. some of the banks have terms which detail that if the Euribor rate is higher than the ECB + a certain % for a set period of time, the rate can be changed to track the Euribor]
 
Even if it does allow for Euribor to be tracked at some stage I would still go for the tracker, better to track something than allow it to be left up to the bank to increase or reduce the interest rate as it sees fit.
In time variable rates are going to be closer to the Euribor than the ECB rate IMO.
 
Thanks, that's all very helpful advice.

I've another question while we're at it. My circumstances at the moment mean that I need to reduce payments for a while. I'm tkaing a big wage cut at the moment for training soon but will be back on a decent wage early next year. I'd like to get a 6 month moratorium but I don't think that'll be a runner. The alternative is to look for interest only for a period of six months. What's the likelihood of them agreeing to that? Someone else told me that i can take a two month break with those two payments then spread over the following 10 months on top of the normal amount. Anyone heard of this?
 
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