A colleague mentioned a new tracker mortgage in the market. Is it a good idea to avail of this type of mortgage?

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Pieface

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A colleague mentioned a new tracker mortgage in the market. Is it a good idea to avail of this type of mortgage? Looking forward to your opinion.
 
Do you mean this?

Avant Launch Euribor Tracker

https://m.independent.ie/business/personal-finance/tracker-mortgages-return-17-years-after-the-celtic-tiger/a683691515.html The new product will be set with a margin of 0.9pc over the Euribor rate, for those borrowing 80pc or less of the value of the property. A margin of 1.1pc will apply for...
www.askaboutmoney.com

Is it a good idea to avail of this product? That depends on a range of factors. There's a price argument, this would appear to be very competitive when compared to other variable rate products. But price isn't the only consideration.

The rate is variable and set by the market so it's possible that the underlying market rate could increase and you end up paying more.

From a borrow perspective it's a good product if you can comfortably afford the repayment if interest rates go up. That's likely someone with stable income and a low loan to income ratio.

Conversely if you're highly leveraged, have high none mortgage expenses and/or would find it hard to meet me repayments if interest rates increased I think I would be better with a fixed rate.
 
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