Picking Best Options For Mortgage

Our Mortgage is coming out of its fixed interest rate and we have been given a number of options - now all the options are ALL lower then the rate we are currently paying. But do people have an idea of which rate would be best going for.

These are the options we have been given thanks

Tracker Variable ECS + 1.25% - rate 2.250%
Existing Variable LTV Rate PDH - Rate 2.700%
2 Year Fixed (PDH) - Rate 3.150%
3 Year Fixed Rate 3.600%
5 Year Fixed (PDH) - Rate 4.250%

If you have that Tracker option I'd snap it up....

All depends on you personal circumstances and your ability to pay mortgage going forward... if you have decent income and low mortgage and job relatively safe then tracker is the best but if you think job / income at risk and just about meeting repayments then maybe go with fixed

Interest rates from ECB not expected to increase until end of next year at earliest so risk of interest rate hike is low...however any bank can increase their variable rate without an ecb increase in rate

hope this helps... if need further info, please advise approx mortgage and approx income and whether risk of job /income loss

Yeah the bank have said that if they do not hear from us by the 10/01/2010 they will automatically switch us to the Variable Rate of 2.250% which is the tracker rate.

I'm confused. I thought Trackers were consigned to history. Is this available to new customers? What bank is it?

Manuel said:

I'm confused. I thought Trackers were consigned to history. Is this available to new customers? What bank is it?

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They may be available to existing customers coming off a fixed rate - not available to new customers.

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Yeah we are an existing customer coming off a fixed rate - its with the Bank of Ireland - I think we are going to go with the Tracker for the time being and pay a little extra why we can and then in a few months if the interest rate goes up look to fix it for a year or two