Should I fix a 3.25% tracker at a lower rate?

[Brendan Burgess]

Key Post - How to evaluate if it's worth fixing, switching or breaking out of a fixed rate

Almost every post on this topic is wrong. No matter how often it is pointed out, people look at the wrong figures. They use mortgage calculators when they don't need them. Most of the time, you can do the figures in your head. Do not look at the monthly repayments – they are misleading. Do not...

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[Number]

Also wondering is a switch worth while or the right thing to do. Currently on a residential tracker rate of 3.25% with permanent tsb. Would it be wise to change to a 3 year fixed rate at 2.95% with permanent tsb.

 

[Brendan Burgess]

Hi Number
Very hard to know.

You will save 0.3% a year but you will lose your tracker.

Is a tracker of ECB +3.25% worth much?

As a locked in ptsb customer, I think it is.

They have a long history of exploiting customers. They were charging 6.25% when AIB was charging 3% and BoI 3.25%.

The SVR is 3.95% and that is only recently reduced, if I recall correctly.

The lowest variable rate they have is 3.6%

What is your LTV and arrears status?

Will you be able to switch when the fixed rate is up?

If not,. I would tend to stay with the tracker, but it's a very close call.



Brendan

 

[Brendan Burgess]

Did you get the 3.25% as part of the tracker review?

I think that this is being challenged by a few borrowers. Not sure how good their case is but if one of them wins, then it would be applied to all. Maybe another reason for staying on the tracker.

Brendan

 

[Number]

Hi Brendan,
Thank you for your response.

Arrears - None(fighting hard to avoid going into arrears).

LTV - Just <80%

I don't think we would be in a position to change for at least 6/7 years. Going by wages to mortgage owed.
I did contact AIB and our earnings fell short.

Yes, 3.25% from tracker review.

That would be a dream come true .

My thoughts was that the fixed rates might come down another bit, especially with
ulster banks latest cuts. Do you think that might be possible?

 

[Coldwarrior]

I don't think we would be in a position to change for at least 6/7 years. Going by wages to mortgage owed.
I did contact AIB and our earnings fell short.

Just FYI the central bank loan to income rules don't apply to switchers, so you might actually be able to switch. Maybe try a going through a broker, they earn their money on trickier applications, knowing which banks to approach and how to present the application in the best light etc.

 

[Number]

Thank you Coldwarrior, no harm in trying a broker.