Key Post Should borrowers with trackers consider fixing? (General guidelines)

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Hi Brendan, like others on the thread, seeking some advice to flip the tracker onto Fixed with current provider AIB or other elsewhere ~ in order to best manage the repayments.

  1. Existing tracker margin 1.75% Tracker
    2) Amount outstanding on your mortgage €145,000
    3) Remaining term 18 years
    4) Lender AIB
    5) Value of your home €360,000
    6) Might you trade up or overpay your mortgage? No
    7) Do you face any barriers to switching - e.g. an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage. No
    8) What rates are you considering fixing at? Unsure what to do thinking of fixing for 5 or 10 years but looking for some advice.

Thank You
 
A 1.75% tracker is not worth very much, so I would not worry about losing it.


The 5 year rate seems like the best value to me. I don't think I would pay an extra .8% for the next 5 years for the comfort of knowing that your rate won't exceed 3.1% for the following 5 years.

Rates will probably be higher in 5 years, but the amount you owe will be lower.

Do you qualify for the green rate by any chance?

Brendan
 
Hi Brendan – appreciate the swift response and advice, I haven’t carried out a BER but checking online it lower scale is a B3, so might qualify.

In terms of switching with same provider AIB – is there no additional costs?
 
Hi Brendan, unsure where rates are going I'm considering a fixed rate also. I've a decent rate so perhaps its worth sticking with it?

1) Existing tracker margin - 0.75%
2) Amount outstanding on your mortgage - 180k
3) Remaining term - 23 years
4) Lender - UB
5) Value of your home - 250k
6) Might you trade up or overpay your mortgage? - Not considering either at the moment
7) Do you face any barriers to switching - Avant CC issue which has been addressed in 2019 but its probably a black mark till June 2024.
Could this restrict me to UB only (2.95% over 10 years or 2.45% over 5 years)
8) What rates are you considering fixing at? Unsure, looking at 5 - 10 year horizon
 
Savvy said:
1) Existing tracker margin - 0.75%
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Savvy said:
4) Lender - UB
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Savvy said:
3) Remaining term - 23 years
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You should definitely not fix with Ulster Bank.
Your mortgage will be acquired by permanent tsb and they really exploit existing customers. So when the fixed rate is up, you would be at their mercy.

Check your Credit Record. If there is a black mark on it, then just stay as you are.

If it's not marked on it, then apply to Avant and AIB. If they accept you, then you could switch and fix, as long as the rate is still low by the time the paperwork is done.

If you don't get the switch done before rates rise, then stay as you are.

Brendan
 
Hi Brendan,

I have two Tracker mortgages with UB and like everyone else on this thread, I’m not sure what is the best option to take with the ECB rate increases.

Details below:

Mortgage 1 (Home)
1) Existing tracker margin ECBR + 0.85%
2) Amount outstanding on your mortgage €144,500
3) Remaining term 13.5 years
4) Lender UB
5) Value of your home 410,000 plus ?
6) Might you trade up or overpay your mortgage? No plans to do either in the next 5 years
7) Do you face any barriers to switching - e.g. an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage. No
8) What rates are you considering fixing at? Unsure what to do thinking of fixing for 5 years but looking for some advice

Mortgage 2 (Rental Property)
1) Existing tracker margin ECBR + 0.95%
2) Amount outstanding on your mortgage €50,000
3) Remaining term 9 years
4) Lender UB
5) Value of your home 220,000 plus ?
6) Might you trade up or overpay your mortgage? No plans to do either in the next 5 years.
7) Do you face any barriers to switching - e.g. an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage. No
8) What rates are you considering fixing at? Unsure what to do thinking of fixing for 5 years but looking for some advice

So I’m really just looking for some advice on what is the right move to make in both cases.

Thanks again.
 
Dodger30 said:
1) Existing tracker margin ECBR + 0.85%
2) Amount outstanding on your mortgage €144,500
3) Remaining term 13.5 years
Click to expand...

1) You could fix for 5 years at 2.35% - but you would lose your tracker and then be at the mercy of permanent tsb exploitative treatment of existing customers after that. So I would not recommend a short term fix.

2) You could fix for 10 years at 2.8%.
This would protect you from ptsb for 10 years. And the last 3.5 years won't be material as the balance remaining will be so low.

By fixing for 10 years at 2.8% you will be paying more while ECB rates are below 2%, but you will be paying less if and when rates the ECB rate exceeds 2%.

It's a close enough call as no one really can predict ECB rates.

On balance, I would probably prefer to stay with the tracker.

3) You could switch to Avant for 10 years at 2.4%

This would save you .4% of €144k for the first year or €600. This amount will fall as the capital goes down.

It might be worth starting the switch process and if you don't complete it by the time the fixed rates go up, then stick with your tracker.

Brendan
 
Dodger30 said:
1) Existing tracker margin ECBR + 0.95%
2) Amount outstanding on your mortgage €50,000
3) Remaining term 9 years
Click to expand...

Presumably they would charge the Buy to Let rate of 4.95% for fixing for 5 years?

If so, then stick to the tracker.

With €50,000 and only 9 years left, it is probably more important to remain flexible. You might want to sell the property and won't want the hassle of break fees.

So everything here says keep the tracker.

Brendan
 
Hi Brendan,

Thanks very much for the prompt and clear response, much appreciated.
 
Suz2015 said:
If I fix with PTSB now, does that mean I loose my Tracker or will the account go back to Tracker at end of fixed rate?
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You lose the tracker. I had my tracker with PTSB, rang to get more info on fixing. They sent out letter breaking down all rates and what my new repayments would be. In bold letters there is a couple of lines saying that if you fix you will basically lose the tracker rate and at the end of the fixed term be offered their rates at that time. I fixed for 5 years at 2.8% (green mortgage), but now kind of regret not fixing for 7 years at 3%.
 
You could ask for a break fee quote and if it is zero (or sufficiently low) you could re-fix for 7 years at 3%.
 
1) Existing tracker margin: 2.1%
2) Amount outstanding on your mortgage: 209,999
3) Remaining term: 19 years
4) Lender PTSB
5) Value of your home €600,000
6) Might you trade up or overpay your mortgage? Overpay
7) Do you face any barriers to switching - e.g. an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage: split mortgage due to porting tracker€177k, 5 yr fixed 3% 2 yrs 4m left on rate. 28 yrs on term
8) What rates are you considering fixing at? No idea!
9) Does your house have a high BER rating which might qualify it for a lower rate? Potentially! Was C3 on purchase but we insulted when we purchased so would need another reading.
 
Brendan Burgess said:
You will have to explain that a bit more clearly.

How much have you on each rate?
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Sorry mortgage is in two parts due to keeping tracker when moving: €209k tracker @ ecb +2.1, 19 years remaining. 2nd part 177k, 28 years remaining, fixed rate 3% which ends in 2yrs 4months.
 
In any event...

A tracker with a margin of 2.1% is not worth much. Your rate next month will be 2.6% , and probably 3.1% by the end of the year. So if you have to give it up to switch to another lender, don't worry about it.

You have a 64% LTV

Permanent tsb has very high rates for existing customers, and so you should switch to another lender. You may have a break fee to pay, but just bite the bullet now. Presumably you got cash back so that covers that.

You should switch to AIB for either a 5 year Green rate at 2.15% or if you don't qualify for that a High Value 4 year at 2.2%

The alternative is Avant at 7 years at 2.35%

If you choose not to switch, I don't think you should fix the tracker portion.

While a tracker margin of 2.1% is not worth much compared to other lenders, it does protect you from the very high rates ptsb charges its existing customers. So while it may make short-term sense to fix for 5 years at 3%, you would lose your tracker and be vulnerable to whatever rates ptsb charges then.

So bite the bullet and switch now.

Brendan
 
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Hi,

Looking for some advise - I will be re-mortgaging in 2 years as I am taking over the family home.

1) Existing tracker margin - 1.15% before last week's increase
2) Amount outstanding on your mortgage - 215k
3) Remaining term - 15 years
4) Lender - Ulster Bank
5) Value of your home - 330k
6) Might you trade up or overpay your mortgage? Yes - in 2 years (approx. to take second name off mortgage)
7) Do you face any barriers to switching - e.g. an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage. No
8) What rates are you considering fixing at? Ulster Bank offered a Fix rate 2.25% for 2 years
9) Does your house have a high BER rating which might qualify it for a lower rate? Don't think so
 
Hi Roseiy

A tricky one.

When you say that you will be remortgaging in two years, do you mean that you will be applying to various lenders to get a mortgage of €215k to replace your current mortgage?

Or do you mean that you will be asking Ulster Bank/AIB to allow you get your joint mortgage holder off the mortgage?



Brendan
 
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Thanks for your reply Brendan,

I will getting the joint holder removed from the mortgage - I presumed I'd have to go through a whole new application on my own, but maybe they will let me take it over.

Would I be able to stick with UB now on the tracker until it's moved to AIB and then ask them to fix as an existing customer?
I'm a bit worried about the uncertainty of rate increases sticking with the tracker.
 
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