Mayfield05
New Member
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- 9
1) Existing tracker margin ECB + 1.20%
No, but considering selling (its' a BTL now)
4) Remaining term
20 years
Thanks Brendan that's helpful, considering inflation is it better to pay some of the savings off the mortgage currently ?If you are planning to trade up, it's probably best to avoid a fixed rate.
Bank of Ireland's fixed rates are high, so fixing is not likely to save you much money.
Let's say you fixed at 2.9%. That would mean an ECB rate of 1.75% which we are probably going to hit soon enough.
Switching is not a good idea either as you might not recover the costs in the time until you move.
There isn't much in it either way but probably retain flexibility by staying on the tracker rate.
When you trade up, make sure to move to a fairer lender.
Brendan
OkStart a separate post on that issue.
Brendan
@pinkie123Also been listening to 'experts' on radio saying never to give up a tracker
the guy who presents 'how to be good with money'@pinkie123
Which experts have said this? It's very annoying having to counter such commentary.
As you plan to move in three years, I don't think it's worth switching lender now. You will have all the hassle and pay the costs but have too short a time to recover them. But do switch lender when you move and don't go near BoI again.
So should you fix? A 1.35% margin isn't worth much given that you will lose it anyway when you move.
When ECB rates hit 2%, you will be paying 3.35% so it's probably right to fix for 3 years at 3%. ECB rates may well exceed 2%.
As you are planning on moving, don't fix for more than 3 years so there won't be any exposure to an early repayment fee. If you fix for three years and do move before the three year fixed rate period is up, the break fee should be small.
Brendan
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