Tracker Mortgage v Current Account Mortgage

O

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Moving house shortly and intention is to get best mortgage available.
Tracker and Current Account Mortgages appear to offer big savings over others but which is best and by what bank?
 
NIB offer a tracker rate of .79 above the ECB rate for duration of the mortgage which I think is the best that's out there, plus they offer free banking if you switch your accounts to them.
Think you have to borrow under 60% of the house value though
 
and the minimum borrowed must be €375k (or it may be €350k - I challenge anybody to find out as basic a piece of information as that on NIB's site).
 
The tracker seems to be gfood value if you can keep a few grand in the account most of the time.
e.g. you might have a stash of a few thousand rainy day money or emergency cash in a deposit account. Well my understanding is that if you have this in the current account morgtage you are effectively getting the morgtage rate on it , rather than a miserly deposit rate.
The money is assumed to be a morgtage overpayment while you have it in teh account.

If you never have a cash to keep in the account you won't make the savings. In this case the account with the cheapest rate is the answer.
 
pats,

You're confusing a tracker and an offset or current account mortgage, I think.

A tracker simply guarantees that that the rate will always be a certain margin above, in our case, the ECB rate. It doesn't come with all the bells and whistles you mention i.e. the ability to offset sums held in a current or other account for interest purposes.

It's the rate that matters - the rest is just a distraction!
 
Just visited NIB today and was impressed.

They offer 3.1% ARP on 100-350K offset mortgage. This is lower than the AIB's tracker rate of 3.14% on >250K - and AIB don't offset!

NIBs tracker rates are also better: 2.8% ARP for 3.0% for 60-80% LTV.

Snag - NIB only goes to 25 year mortgages while AIB quotes for 30 years.

Sorry AIB - been with you for 18 years but on monday I'm gone. That's what you get for not staying up with the competition (and for losing me money on my PIP over the last 8 years!)
 
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