Do you have a link to that? That isn't my understanding of the ECB's current position.Do not forget that the ECB indicated recently that it was unlikely to increase its rate until 2012 at the earliest.
I'm sure that when the ECB rate does start to increase that it will be a slow process, as the Eurozone is still very fragile.
Do you have a link to that? That isn't my understanding of the ECB's current position.
I think any tracker with a 0.5-1.00% margin is very hard to beat.
However, he then went on to say that mortgage rates will rise dramatically over the next year. Consequently, he feels that it is advisable for tracker customers to fix sooner rather than later. He said that once the ECB rate starts to increase, the cost of fixing will rise sharply.
However, I'm certainly not going to let go of my tracker, as I believe it will always be cheaper than going for a fixed option.
It's worse than that. You'll pay more from now until ECB rates exceed your fixed rate. That could be any length of time away.I am with you guys all the way.
I am amazed at Eddie's stance. It is a short term view. If I am in year 3 of a 35 year tracker, why would I move to a 5 year fixed? Will I not end up paying more from years 8-35?
Unless Eddie forsees some sort of Weimar Republic hyper-inflation scenario occuring within the next 18 months this is a no brainer.
For what it's worth I remember seeing Karl Deeter (Mortageg Broker) on some program on TV3 about 15 months ago explaining how he was trading in his Tracker for a Fixed mortgage then. Just cos someone wears a suit and appears on TV doesn't make them right.