Broker adivce

P

pugg25

Guest
Hi,

I have been advised by a broker to consider not taking the one year fixed discounted rate for new business incase the tracker bond offer is not available in a year?!?!

Any thoughts??
 
Hi Pugg,

The theory behind this is that a. tracker mortgages may not being offered when the fixed or discounted period ends and b. the margin may not be the same as it is now. Whilst both are possibilities I think it's highly unlikely that lenders would not continue offering trackers given the obvious popularity and benefits they enjoy and margins, if anything, may be squeezed further. Having said that most tracker mortgages have been introduced since the last interest rate movement so, as and when rates do move up, trackers will go up immediately whereas variable rates mortgages might not be adjusted for a month or so; it will be interesting to see the reaction.

Kind regards,

Sarah


www.rea.ie
 
reduced rate

How does the reduced rate work?

I thought you selected the loan option in the beginning. Then a reduced rate applied for a year and you went back to the initial selected option...at that current rate...

but obviously not after reading the post above...

Can you not select your loan preference initially...or how does it work?

Cheers.

A
 
Re: reduced rate

It used to be the case that if you opted for the one year fixed or discounted rate you automatically went onto the standard variable rate at the end of the year; lenders weren't allowing existing borrowers to avail of the tracker rates. Now you can although they don't make it particularly obvious that this is an option.

Sarah

www.rea.ie
 
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