Which is better Ulster Tracker Mover product @2.5% or fixed rate?

[Brendan Burgess]

If you have a tracker with Ulster Bank at ECB +1% and you want to move home, they will give you a tracker mortgage for the balance outstanding and the remaining tracker term at ECB +2% for 10 years. If you are borrowing more money, they will charge you the market rate.

But you can fix for two years at any LTV at 2.3%. Which should you go for?

I think it's clear that the tracker is the better long-term product - assuming you have 10 years or more remaining on your tracker.

The 2.5% rate is fixed for 2 years so ECB rates would have to rise quite a bit for you to save money by opting for that instead of porting your tracker.

I would opt for the tracker with Ulster Bank.

Brendan

 

[Brendan Burgess]

Should you consider switching to another lender and give up your tracker altogether?

I don't think so. You can have a tracker at ECB + 2% for 10 years and the balance fixed at 2.3% for two years.

The best alternative is to fix with Bank of Ireland at 3% and stay with them for 5 years to get 3% cash back. This works out at 2.4% ( 3% over 5 years = 0.6% a year.)

So the porting option remains better.

But it's getting closer.

If, for example, you want to trade up and Ulster Bank won't give you a big enough mortgage, but Bank of Ireland will, then don't worry about losing your tracker.

Brendan