Am I correct to assume the following: If i choose a variable rate then the mortgage provider varies the rate in line with the ECB rate as they so desire. i.e. rates can decrease but it is up to the discretion of the mortgage provider to pass on the decrease? (I presume they typically will all pass on a rate decrease in order to remain competitive).
If this is so then would it not be better to go for a tracker rate where the variable element is set soley by the ECB rate??
On an aside topic - are tracker rate mortgages recommended or something to steer clear of for first time buyers?
thanks,
B
If this is so then would it not be better to go for a tracker rate where the variable element is set soley by the ECB rate??
On an aside topic - are tracker rate mortgages recommended or something to steer clear of for first time buyers?
thanks,
B