1 year Tracker due to expire - suggestions on best deal

[ACA]

Basically I need help!!

My 1 year tracker of 2.5% variable is coming to an end and my mortgage company (ICS) has sent me a list what I can do now. I can continue on a variable tracker ECB + 1.25% (don't really understand what that means) at a rate of 3.75% which increases my payments by about €80 per month or I can lock in for 1, 2, 3, 5 or 10 years at rates between 4.29% and 4.99% (4.29% increases my payments by €120, 4.99% by €180). Annual gross income is roughly €60K, mortgage is €160k. Would I be better off ignoring these options, re-mortgage elsewhere to lock in at a lower rate for 12 months? I know that interest rates are on the increase, can anyone suggest what would be the best course of action for me?

 

[CCOVICH]

Basically I need help!! I can continue on a variable tracker ECB + 1.25% (don't really understand what that means) at a rate of 3.75%

This means that the rate you pay will equal the European Central Bank (ECB) rate + 1.25%.

The ECB rate was increased to 2.75% last week, so you will find that you will be paying 4%, and not 3.75%. This will fall/rise in line with changes in the ECB rate.

All rates on offer are printed in the Irish Times Property supplement on a Thursday. What is available will depend your loan to value (LTV) and possibly the remaining term. Get the list and shop around.

Don't fix unless you need the security (but possible increased cost) that goes with fixed rates

 

[irishpancake]

Check out the possibility of switching to Bank of Scotland =<75%Tracker. Info [broken link removed]

They offer a discounted tracker for a two-year period, which is set at ECB +0.45% (Currently rate is 2.95%). After 2 year period expires, rate is ECB + 1% (Currently 3.5%). These rates will go up when new ECB increase is applied.

BoSI also offer up to €1000 towards switching legal fees, which should cover the cost of switching completely. And €150 towards Valuation Fee.

The two years may give you a breathing space to allow you to ride out the worst of the rate increases.

The only down-side is that you must lock in for a five-year period to avail of the legal contribution. If you move within the 5 years, you must repay.

 

[ACA]

Thank you both for your advice. I'll look at Bank of Scotland and maybe ring ICS and tell them that I'm going to switch unless they can offer me a better deal!!
CCovich thanks for explaining ECB!

 

[bambino]

Just a note on the Irish times rates, afaik the banks inform the papers themselves of rate changes and when they increase rates they are not very quick at informing the paper.

make a list of all the lenders and check their websites, make sure that any tracker rates have been updated since last week, basically there should be a "rates valid from" somewhere on the site if this is before 8th June the rates are not current.