Tracker Mortgages
- Thread starter andrea79
- Start date
Yes - a tracker mortgage rate is ECB plus some fixed margin so it changes whenever the ECB rate changes.
See here for historical rate changes:
Past key ECB interest rates
WaterSprite
Registered User
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Yes, your tracker stays at the same margin above ECB for the term - so it will change when the ECB rate changes. The ECB rate was changed very frequently in the last 12-18 months and it gets reviewed regularly, even if it doesn't change. For example, they reviewed it earlier in the week but left rate at 4.25%. There's no telling when it will change or whether there will be cuts or increases (although people can make educated guesses based on inflation and other economic factors): have a look at thread for a lengthy discussion about whether people think the rate will change.
Sprite
Sprite
I
irishlinks
Guest
You'll probably have to move lender to get a tracker - because PTSB no longer do trackers (Nor Ulster or First Active or IIB)
Oh really? god i need to go in and talk to them and see what my options are. Its not looking good really is it. Things are so tight as it is, not sure if i can afford a hike. As it is i have a lodger and my parents helping me out too, i still have a 3rd room to rent out if push came to shove but really didnt want to do that unless i had to, but maybe i will.
Another option was to rent the house out as a whole for a yr maybe( although not sure how easy that would be either) and move to accommodation on site at work and just pay a small sum each month. It would give me breathing space for a yr or so from the mortgage, but i really didnt want to leave the house. Ill wait and see what way the figures will be.
Thanks for all your help.
If things are so tight then perhaps fixing is the most appropriate option for you?
You need to consider all the possible tax and other implications of doing this. They are all covered in the Property Investment - e.g. FAQ, key posts and many existing threads about people converting their PPR/home to a rental investment property.
The ECB usually review their rates and make an annoucement (rates remaining unchanged, reducing, or increasing) on the first Thursday of every month. This may take a while for your bank to pass it on....I am on a tracker rate and have had quite a few increases over the past 18 months, and each took 2-4 weeks to be passed on to me by my bank. Each time this increase was implemented by the bank, I received a letter outlining the new rate, my new monthly payment amount and the total no. of payments remaining.
Oh ok, so whats the best way to go about this?
About what precisely?
What about the advice you have received here already? From what you've posted you cannot afford repayment fluctuations (increases) so you might want to fix so you need to find out what the fixed rate options (rates and terms) are available from PTSB. Ideally if you are fixing then do so for as short a period as possible. Or if you can actually afford to go on a tracker then you need to see what, if any, tracker rates are on offer from PTSB. Or standard variable rates if there are no trackers. Or what rates are on offer from other lenders if you are considering switching. By all means talk to your lender but don't expect independent advice. You need to think about your situation and consider what's most appropriate for your specific needs. Nobody else can answer this for you!
I need to talk to the bank to see what the figures are going to be. As of now i dont know what the increases are going to be, thats why i need to go into the bank and see what options they are giving me and then ill have to weigh up what suits me best and what i can afford.
I have got great advice here and will be taking it on board, just need to see figures first, which is what im scared of.
I have got great advice here and will be taking it on board, just need to see figures first, which is what im scared of.
PermanentTSb Will send you out a renewal rates sheet 2 weeks before your fixed term is up. I just got one. Pretty depressing rates TBH. AIB doing very good fixed rates at the moment. Have just been quoted 5.2% for 2/3 yrs fixed as opposed to perTSB tracker 5.94 fixed 6.04 approx. Ridiculous rates. Although when i went in to them to negociate tracker rate they said they would bring it down to 5.80 (AIB 5.75) if i got my house valued and the LTV was below 80%. They have affinity schemes if you work for certain companies you may be able to get valuation for free.
p.s AIB give €1200 towards changover costs.
p.s AIB give €1200 towards changover costs.
Many lenders do not outline ALL rates on offer in such circumstances. My sister was coming off an EBS fixed rate and they only listed a subset of all of the rates on offer and conveniently omitted their tracker rates which she would not have known about only she asked me for advice first. Nice to seem them looking after members so well...