I still don't think there is enough coverage of the potential cost/risk of mortgage holders remaining on variable/trackers to overcome the level of inertia, which may result costing households thousands at a time they are already under pressure financially.
Surely you know from previous experience that a lot of people just won't do anything, no matter how much attention it gets? How many times did PTSB write to customers on SVR offering to move them to cheaper MVR, and still lots never moved? Look at the thousands of customers that have stayed on SVRs with BOI even though its been cheaper for them to fix since 2014.
Sinn Fein tried to raise the possibility of providing mortgage interest relief when rates started rising, trying to make it a government issue rather than educating people to fix.
I agree with the overall idea that not all trackers are worth holding onto. And yes, people should look at options, but they need to be properly informed, not just comparing published APRCs without having any understanding of what they mean. I know regulations require the publication of APRC but used in isolation it's misleading to the lay person and will lead to bad choices.
Take AIB, <50% LTV. The current LTV variable rate used in calculation of fixed rate APRCs is 2.75%. That's 25bps over ECB rate. Do you really think AIB will lend at an average of 25bps over ECB for the remainder of the mortgage term once the fixed rate ends? Because that's what the APRC is comparing.
I think it's short sighted to consider giving up a tracker for a short term fixed rate, unless one believes competition will lead to tight margins when the fixed rate ends. All we know with certainty is that any assumptions made will be proven wrong with time.
Personally, in the absence of a crystal ball, I take a simpler view of the world. But these are the personal musings of an anonymous guy on the street.
The yield on 10 year German sovereign debt is currently 2.23%. BOI currently offer 10 year fixed rates for current customers between 3.3% and 3.5%. Would I give up a tracker to borrow at 1.1% higher than the German bund yield for the next 10 years?