Fix or Stick with Tracker?

[Amelie2024]

1) Existing tracker margin. ECB +.75%
2) If you have an additional mortgage on the same property, what is the rate? n/a
3) Amount outstanding on your mortgage : 190. 000
4) Remaining term : 20 years
5) Lender : AIB
6) Value of your home: 550, 000
7) Might you trade up or overpay your mortgage? Capacity to pay a lump sum of 50k
8) Do you face any barriers to switching? E.g., an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage, you are now renting out the property. No
9) What rates are you considering fixing at? 3.85% Green AIB
10) Does your house have a high BER rating which might qualify it for a lower rate?Yes, B2 .
11) How well could you handle a further 2% rise in the ECB rate? We have gone from .75 to 4.75%, hoping that we have reached the end of the hikes but managing comfortably.

 

[Brendan Burgess]

Is the Green rate not
Your margin is 0.75%

So the ECB rate would have to fall from the current 4.5% to 2.9% to justify staying on your tracker.

Forecasting ECB rates is difficult but the consensus seems to be that they have peaked and will start falling this year.

It's close. But with 20 years left on my mortgage I would probably stick on a tracker of 0.75%.

It also means that you can overpay without penalty.

Brendan

 

[Brendan Burgess]

We have gone from .75 to 4.75%,

Are you sure you are not on 5.25% at present?

 

[Amelie2024]

Are you sure you are not on 5.25% at present?

Your are spot on Brendan, apologies I miscalculated.