Our 2yr fixed is up, the bank have offered us a Tracker (ECB +1.25%)should we takeit?

A

advic

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We bought a house two years ago, as our 2yr fixed is up the bank have offered us a Tracker variable ECB +1.25%. This seems like a great option for us and immediately we will make a considerable saving. But long term Im not sure of its implications? Any advice out there?
 
Re: Should we go with Tracker?

I would grab it with both hands.

It is a very good tracker rate.

Your alternatives are

a) A fixed rate which will be higher, and at the end of it you will not have a tracker option and

b) A variable rate which will leave you at the mercy of the lender and will almost certainly be higher than your tracker of 1.25%
 
Re: Should we go with Tracker?

Take the traker unless for some reason you were considering going with a fixed rate.
 
Re: Should we go with Tracker?

Take it Take it Take it

Then next year monitor rates monthly ( from the summer onwards )
 
Re: Should we go with Tracker?

I'd agree. Take the tracker. If the rates start to increase and you don't feel you could meet the repayments you can always fix then. Given that your current rate is probably considerably higher than 2.25% you probably can afford it at an increased base rate, possibly up to 5%?
 
Re: Should we go with Tracker?

A tracker mortgage is similar to a standard variable rate mortgage, with one main difference - it 'tracks' the European Central Bank (ECB) rates. The benefit is that it commits the lender to keeping their 'margin' (the markup they charge on top of the wholesale rate) under a certain level. Tracker mortgages are not available in Ireland at present (unfortunately).

On a variable rate the bank can raise the rate at any time and is not obliged to pass on rate reductions, this cannot happen on trackers hence their value.

[broken link removed]
 
Re: Should we go with Tracker?

Thanks for the answer....If tracker isnt available in ireland then why are people in this thread saying TAKE THE TRACKER.

Are the ECB rates lower than the rates of the banks in Ireland?
 
Re: Our 2yr fixed is up, the bank have offered us a Tracker (ECB +1.25%)should we tak

Sorry, should have been clearer, trackers are no longer available on new mortgages but you may be able revert to a tracker rate at the end of an old fixed rate.
 
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