Indeed. The Moneysherpa figures have been discussed in this thread:I find these numbers dubious.
These [€132,000 and has 15 years left] are Central Bank figures so they are not wrong per se but they are not really relevant to tracker mortgage holders coming to terms with significant rising mortgage costs.
Figures available from the Central Bank show that, as of last September, the average outstanding balance on an Irish tracker loan on a family home was just under €81,500.
And given that tracker mortgages were phased out over 14 years ago – the last products were pulled in October 2008 – the average term outstanding on tracker mortgages is certainly below 15 years.
I was about to post something similar. The other factor worth considering is who your existing mortgage lender is.Getting back to the question in the title of this thread...
The factors to consider when asking if a Tracker is worth keeping, include:
* Lending margin (lower rates are more likely to be worth keeping)
* Term of debt remaining (the longer the term, the more likely that ECB rates will swing, up and down)
* Size of debt (the bigger the debt, the more the repayments will change, as rates increase or decrease)
That sounds like a reasonable rule of thumb to me.It's very difficult to give general advice. When pressed, I say " Every case is different, but as a general rule, keep trackers with a margin under 1%, trackers over 1.5% are not worth keeping, and between 1% and 1.5% is a very close call."
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?