Stay on Tracker (ECB rate + 1%) or switch to Fixed

N

Numbnuts

Registered User
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Hi all,

I hope somebody can offer some advice. I'm really unsure what is the best option for me and I don't exactly trust my bank to give impartial advice.

I have a €330k Interest only mortgage since June '07 and can stay on IO for up to 5 years. I currently have a tracker mortgage of ECB rate + 1% (repayments are currrently approx €500 per month inc TRS).
My property is currently work approx €300k.

Should I stay on my tracker mortgage or switch to a fixed rate. I could prob afford approx double my current repayments if necessary.

Any advice would be gratefully received.

Many thanks,

Dave
 
Re: Stay on Tracker switch to Fixed

Keep the tracker. What your bank is not telling you is that once off it youn lose it.
 
Re: Stay on Tracker switch to Fixed

Numbnuts said:
I have a €330k Interest only mortgage since June '07 and can stay on IO for up to 5 years. I currently have a tracker mortgage of ECB rate + 1% (repayments are currrently approx €500 per month inc TRS).
My property is currently work approx €300k.
Click to expand...

Work out what the monthly repayment would be with cap & interest repayment,subtract it from the IO payment of e500 and bank it,end of the year pay down the capital amt,you have about another 2 years (?) left on IO so you will need to get used to cap and int repayments,no time like the present....do not give up the Tracker under any circumstances.
 
Stay with the tracker and come off the interest only (why did you go for that option anyway?) You need to start paying back the debt soon. It won't just go away.

www.*****************.com
 
At 2%, repayments on €330,000 over 25 years would be about €1,400 per month before tax relief. If your term is longer, the repayments would be lower. If you can afford to start paying off more, now is the time to do it. As has been said above, you'll have to start paying the loan back sooner or later.

I agree with everyone above - don't give up the tracker as you're unlikely to get such a good rate again.

Liam D. Ferguson
 
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