Best option for new mortgage rate ?

P

Pablo74

Registered User
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Hi all,
My girlfriend and her friend bought an apartment in Dublin 2 years ago and they went interest only for the first 2 years.
They got a letter during the week to say that their current rate would expire at the end of the month and would they choose one of the following rates for the future.

Description Rate Projected Repay
Tracker Variable ECB + 1.25% 5.250% 1373.00
Fixed till July 2009 6.250% 1634.00
Fixed till July 2010 6.350% 1660.00
Fixed till July 2011 6.310% 1650.00
Fixed till July 2013 6.050% 1582.00
Variable Rate 5.440% 1442.69

Would anyone have some advice to which one to choose with the current state of things ?
Thank you
Pablo74
 
Thanks Colm,
But is changing companies to get a better rate costly ? ...Solicitors etc
Pablo
 
I think those fixed rates you ar quoting are APRs - which are fairly meaningless when looking at fixed rates because they take account of the period after the fixed rate. You need to compare the actual rates.
Regarding going for variable, tracker or fixed - it is very hard to say which is best in the current environment. Short term fixes seem a bit high at the moment - unless you think ECB rates are going to jump up another 1% within the next year - But who knows for sure?
The tracker would be my personal preference . Depending on the loan size and the value of the property - they might get better elsewhere.
 
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