Should I switch from tracker to fixed before ECB rates increase?

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Buttons1

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Hi,

I'm one of the lucky people to have an ECB tracker mortgage with KBC and I'm hearing that interest rates are due to increase around the autumn. Should I stay with my tracker mortgage or should I switch to a fixed rate before the increases come in?

Can I write to KBC and request that on the day that the ECB announce their intention to increase their interest rates, they switch me from a tracker mortgage to their current fixed rate before any increases come in - would they do this? Am I just chancing my arm?

I got a 35 year mortgage of 300k and am only in year 5 of it.....

Thanks!
 
UNless your tracker is at a very high margin over ECB you will almost undoubtedly be better off with a tracker than with a fixed rate in any likely interest rate scenario.

What rate is your tracker (over ECB)?
 
Thanks for replying - I think it's 1.5% over the ECB rate....
 
Don't move under any circumstances. The 3 year lowest fixed rate is currently almost 4%. The ECB base rate would have to go up to 2.5% before it would be worth your while. ECB plus 1.5% is cheap money, the like of which we won't be seeing again any time soon. Hold tight!
 
When you put it like that....it's a no brainer! Will stick with what I have so, thanks for the advice!
 
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