fixed tracker or variable rate which one?

R

redcard

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hi
my fixed rate morgage is just finished and ive just received my new options from my bank. Im not sure which one to choose, in the current climate is fixed the better option?

tracker is ecb+1.25 = 5.25
variable is 5.69
5 year fixed is 5.99
7 and 10 year fixed is 6.10

any advice is appreciated!!
 
No easy answer.

Whether or not you should fix really depends on your overall financial circumstances - e.g. net income, mortgage details (outstanding term and amount), house value, other debts/savings/investments etc.

ECB + 1.25% doesn't sound that competitive. Who are you with? Are they generally competitive?

Fixing for a long term reduces flexibility with regard to moving, making capital repayments etc. due to the penalties involved.
 
hi clubman
morgage is with permanent tsb 20 years left, money is very tight at the moment partner not working and im only partime, i just dont want to make the wrong decision?
 
When considering the tracker, remember that the ECB rate was increased to 4.25% with effect from yesterday, so you'd now be paying 5.5% on that deal.
 
redcard said:
hi clubman
morgage is with permanent tsb 20 years left, money is very tight at the moment partner not working and im only partime, i just dont want to make the wrong decision?
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In that case it sounds like you would be as well of to fix for a suitable period of time bearing in mind the implications of fixing for a long time. Are those the only rates on offer? Lenders may not always tell you the full range of rates on offer when you are coming off a fixed rate. What is your LTV (outstanding loan as a percentage of the house value) at the moment and would it be low enough to get you a lower tracker margin?
 
If you owe more than 80% of the house value - you won't get a lower tracker rate than that offer of ecb +1.25 now anywhere. The lowest available for over 80% LTV is ecb plus 1.3. Under 80% you have more options.
 
hi clubman
house value now is €300k outstanding ballance on morgage is €120k do you think i should ring bank and try and negoiate a better deal?
 
That's an LTV of 40% so it could get you a lower tracker margin. You should ask your lender for a list of the full range of rates on offer in case the original list is not exhaustive. You should also crunch the numbers and see if moving lender would save you money (after allowing for remortgaging costs) if that was an option.
 
If money is tight and your incomes are lower than when you got the mortgage - it could be hard to get accepted by another lender (even though you could get ecb plus 0.5% at NIB) . You could apply and see what they say - it would be a saving of about 50 to 60 euro a month in your case but you would have legal fees to pay (1000 'ish).
 
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