Switching to tracker ?

Hi folks,

I have an existing mortgage with EBS split into two parts,
~100K on variable rate of 5.25%
~120K on fixed rate of 4.99% (with ~ 7 years to go with fixed)

I just checked there tracker rates for the variable protion. They have a tracker rate of .6%+ECB for LTV <=60% which I think I would fit in. I rang them up and they said the best they could do was 1%+ECB.

I am a bit stuck as I can't switch bank without breaking the fixed rate portion ... this would cost ~ 5K I think.

Do you think I should just go for the tracker rate with EBS, or is there any better way to do it ?

Thanks,
Darragh.

I just checked there tracker rates for the variable protion. They have a tracker rate of .6%+ECB for LTV <=60% which I think I would fit in. I rang them up and they said the best they could do was 1%+ECB.

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Why? If you qualify for the lower tracker rate what reason did they give for not offering it?

If your LTV is <=50% you could switch the whole lot to NIB's ECB + 0.5% tracker. If that rate stays at 0.5% lower than your current EBS rates, you'd save ~€1,000 per year. But you'd pay the €5,000 penalty up-front and would lose the security of your fixed rate. You're gambling that the spread between the fixed rate and the NIB tracker stays.

Personally I'd stick with EBS and harangue them into giving you their better tracker for the variable half.

The advertised EBS rate of ECB plus 0.6 applies to loans over 250k - so this would be one reason why you don't qualify. Looks like your best bet is to move the variable to the tracker especially if they do it for free. Do it soon because variable rates might be rising soon even if ECB rates don't.

My mortgage is with the EBS too but no matter how hard I try they won't be moved on their rates. Has anyone else had any luck?

LDFerguson said:

Why? If you qualify for the lower tracker rate what reason did they give for not offering it?

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They said it is for new business which is pointed out on the website. Call me a sucker, but I like the bit of security of the fixed rate.

Also, Irishlinks is right, the .6%+ECB is for over >250K. For under 250K the new business rate if 8.%+ECB,,,

Why are they trying to charge you €5k for breaking the fixed - is this not in direct contrevention of the Consumer Credit Act.

Now if fixed rates had dropped below 4.99% - then EBS would have a swap cost and would be within their rights to pass on the cost to you.

But as the rates for the 10 year have increased - then they have no right whatsoever to charge you

I would challenge EBS very, very strongly on this point and let us know their response - this obviously would have a huge bearing on the advice etc...