Std Variable 5.4% v Tracker of ECB +1.75%

B

buyingabroad

Registered User
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Hi all,

Which do you think one should go for?

Std variable is currently 5.4%. Tracker is ECB+1.75% which equals 5.5%.

HBOS are the provider.

Thanks.
 
if they are still offering you a tracker, then take it. More ecb rate cuts look likely and with a tracker your guaranteed to benefit from them, plus you can always change from a tracker to the std var or fixed at no cost.
 
Thanks for your replies.

EBS don't do it anymore. Std variable is 5.38%. (versus say AIB at 5.0%).

HBOS tracker is actually 1.8% to me.

Std var for HBOS looks to be at 5.25% now.
 
I would pay the premium for a tracker that guarantees any rate cuts will be passed on for the term of your mortgage.
On a variable the bank are not obliged to pass them on.
When the ECB remained unchanged in the past few months (as of course did trackers), variable rates still increased.
Don't expect the bank to pass on the full rate cut just because they did the last time (after they had been bailed out by the taxpayer).
Trackers are more transparent and are worth the extra premium in my opinion.
 
In the long term it's probably not a great deal, as the EURIBOR rate will fall at some stage, and much better deals should become available, but at the moment it seems a good deal - at least you are guaranteed that any fall in rates will be passed on immediately, and the current trend seems downwards for interest rates.

I'd take the tracker and keep any eye out in the future when the credit crunch is over for better deals.
 
Hi all,

I would appreciate some more people's views on this. We now have the following offers, all of which achieve LTV < 80%;

AIB std variable
NIB std variable
BOSI tracker + 1.75%
BOI std var

It's difficult to compare apples with apples when it comes to applicable rates as some have passed through the recent ECB rate decrease and others haven't- this can be seen here

Which bank should we go with in your opinion?

Thanks,

B.
 
This is very strange.

BOSI tracker rate is 3.25+1.75=5%

Std variable is currently 5.25%. This is INCREASING from December 1st. Other banks like AIB, BOI have std variable rates currently at 4.5%.

Anyone know what's going on?

I think BOSI may not be the one to go with even if they have offered a tracker. What do you think?
 
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