Tracker Mortgage or fixed rate?

J

jangallagher

Guest
I have been offered by my bank a tracker mortgage or fixed or variable rate mortgage. My fixed rate of five years is up on the 30th of June 2012..Which is the best to go for??
 
+1

Tracker mortgages were withdrawn from sale by all banks because the banks were losing money on them. That should tell you something. Grab it with both hands and a leg.
 
Yeah that was my thinking...but having the security of the fixed which is what i have always had it is just hard to get my head around...My mortgage repayments are down over 250 per month so that can't be too bad!! Tks for the advice.
 
What would the additional repayment be on a 10-year fixed rate, compared with the tracker? Let's say it's €200 per month extra. Go with the tracker, start a regular savings account and put the €200 per month into it. If interest rates fall, increase the monthly saving. If interest rates rise, reduce the monthly saving. If interest rates eventually rise beyond what you would have been paying on the fixed rate, start dipping into the savings account. I'd speculate that you'll still have money in the savings account at the end of ten years.

Liam D. Ferguson
 
Thank you Liam. That is very good and sound advice. That is what i am going to do...Thank you
 
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