coming off a fixed term soon. what would you do.

T

tizme

Guest
Im currently comming to the end of a fixed rate term for my mortage.At present i am paying £800. I recieved paperwork from my lender (ICS) giving me the following options.
(a) tracker ecb+1.25% (2.25%) works out at £588
(b) existing variable LTV rate 2.70% works out at £614
(c)2 year fixed @3.15% works out at £653
(d)3 Year fixed @ 3.60% works out at £694

At the moment im thinking of going with the tracker for a few months and then going for a long fixed rate.

My questions are what would you pick? and why would anyone pick the variable over the tracker?
 
Re: my mortgage. what would you do?

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Brendan
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I have posted before about my logic in switching to a 5 year fixed rate with AIB and am happy with that decision BUT if I had been offered a tracker at 1.25% when my fixed rate expired earlier this year I would have taken it - no question.
 
I'd opt for the tracker and overpay on the capital to your current repayment. That way there is no extra pain and you start clearing capital at €212 pm.

The only potential reason to opt for the variable is that it isn't tied to ECB base interest rate increase so a bank doesn't have to pass any on - having said that.... I can't see any bank not passing one on!!
 
Consider the fixed rate. Its a good deal for 3 years. if you wait to go on a fixed rate for a few months, the fixed rates could be a lot dearer.

Do they do a 5 year fixed?
 
But if you choose the fixed rate option it is very unlikely you will be offered a tracker when you come back off it in 3-5 years time. You will at best be put onto a variable with which the bank can charge any rate they want.
 
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