PTSB : ECB +1.68% - Should I fix?

mucker2b

Registered User
Messages
5
I am on a tracker mortgage with PTSB of ECB+1.68%.

Should I be looking to get out of this now given that the rates are not going to get any lower?

I'd imagine that even if the rates were to go up a bit tomorrow I would probably still be better off but when I eventually do get out of the tracker the fixed rate will be even higher.

Any advice appreciated, thanks.
 

NorfBank

Frequent Poster
Messages
2,103
Re: Should I get out of tracker

mucker2b,

How long do you have left to run on your mortgage?
How long are you willing to fix?

The main worry about fixing is that it could make sense over the short term but long term it may cost you more. At the end of your fixed rate you will revert to a variable rate with the best at the moment between 2.25% and 2.65%. These rates are better than your current tracker but at least with the tracker you know your rate will be dictated by the ECB not the whim of the bank. Also at the end of your fixed rate such competitive variable rates may not be available.

If you are going to be overstretched by future rate increases than you should think about fixing as the most important factor in all of this is not missing a payment on your mortgage. If you can handle rate increases of 2% then stick with the tracker, long term it is the better option.


www.moneybackmortgages.ie
 

Towger

Frequent Poster
Messages
2,126
Re: Should I get out of tracker

There is also a lot of talk about the banks increasing their variable rate mortgages by 1%, once NAMA finally kicks off early next year. That +1.68% tracker, while on the high side for a tracker may save you a fortune in the long run. The banks are currently trying to temp people off the trackers by offering low fixed rates, while knowing in the long run they will more than make up the money over the years after the fixed rate expires.
 

Brendan Burgess

Founder
Messages
39,186
Re: Should I get out of tracker

There is also a lot of talk about the banks increasing their variable rate mortgages by 1%, once NAMA finally kicks off early next year. That +1.68% tracker, while on the high side for a tracker may save you a fortune in the long run.
+1

This is the key point. Your existing rate will look very cheap in around 6 months.
 

ccraig

Frequent Poster
Messages
359
Re: Should I get out of tracker

banks are no longer offering trackers, theyll be under pressure to increase rates so i would stay with the tracker
 

Knuttell

Frequent Poster
Messages
704
Re: Should I get out of tracker

Trackers are costing Banks an absolute fortune to finance them,they are loosing money on them hand over fist thats why they stopped selling them and are actively encouraging borrowers to change out to their old style varible (which they can increase regardless of ECB rises)you would be mad to give it up as you will eventually be at the Banks mercy with no certainty as to when they decide they will raise them.
My experience of fixed rates is unless you absolutely have to fix for peace of mind and knowing exactly what your monthly mortgage payment will be,then avoid fixing as long term you will rarely come out on top.
 

Bluebells

Frequent Poster
Messages
310
Re: Should I get out of tracker

Trackers are costing Banks an absolute fortune to finance them,they are loosing money on them hand over fist thats why they stopped selling them and are actively encouraging borrowers to change out to their old style varible (which they can increase regardless of ECB rises)you would be mad to give it up as you will eventually be at the Banks mercy with no certainty as to when they decide they will raise them.
My experience of fixed rates is unless you absolutely have to fix for peace of mind and knowing exactly what your monthly mortgage payment will be,then avoid fixing as long term you will rarely come out on top.
Well PTSB are not losing any money on me ! I came off a fixed rate in Oct. 09, and reverted to a tracker that is +3.5 on ECB.
 

Knuttell

Frequent Poster
Messages
704
Re: Should I get out of tracker

Well PTSB are not losing any money on me ! I came off a fixed rate in Oct. 09, and reverted to a tracker that is +3.5 on ECB.
Wow,that is by far the worst tracker I have ever heard of,actually its actually even a pretty poor old style variable rate...what was your tracker before you fixed?
 

Keizer Soze

Registered User
Messages
26
Re: Should I get out of tracker

Well PTSB are not losing any money on me ! I came off a fixed rate in Oct. 09, and reverted to a tracker that is +3.5 on ECB.

My god, cant believe they did this.

I came off a discounted tracker in September and I got my options letter in August. I rang one of their branches in July to find out what the story was and I was offered ECB +2.25 which I thought was bad enough and they warned me that it was going to change to ECB +3.5.

Think I'm going to hang on to mine now.
 

dodo

Frequent Poster
Messages
1,182
I heard Eddie Hobbs on the radio yesterday stating that he had a heavily discounted tracker(now mine is 0.5+ecb)so I would say that Eddie would be same or very close as he said heavily discounted.
He said in the next few months he is going to look around and hopefully get a 10 year fixed rate of 5% .
I thought a tracker of around 0.5+ecb would be like gold today,am I wrong
 

ajapale

Moderator
Messages
7,719
Eddie's discounted tracker probably only ran for one or two years after which it would revert to a less favourable tracker rate or the SVR (where the bank determine the rate to suit themselves).
 

Bluebells

Frequent Poster
Messages
310
Re: Should I get out of tracker

Wow,that is by far the worst tracker I have ever heard of,actually its actually even a pretty poor old style variable rate...what was your tracker before you fixed?
Wasn't on a tracker, was on fixed from start of mortgage.
 
D

Dubliner1962

Guest
We've 8 years to run
Owe about 90k which I reckon is about 22% of the value of the house.
We are on a tracker, ECB + 0.75% which has no end date.
However our repayments are pretty high, just over E1k per month, I guess that's due to the fact that we took a 20 year mortgage.

I'm uncertain on whether to move or not, I've asked UB to revert to us with a proposal and to include all costs.

Any expert opinions out there? Should we stay or move? We've 2 good incomes and secrure jobs but 2 teens at private school and college looming for one of them in 2 years time.
 
I

irishlinks

Guest
We've 8 years to run
Owe about 90k which I reckon is about 22% of the value of the house.
We are on a tracker, ECB + 0.75% which has no end date.
However our repayments are pretty high, just over E1k per month, I guess that's due to the fact that we took a 20 year mortgage.

.
The figures don't look right 90k over 20 years - at 1.75 would be nowhere near 1000 a month - more like 400 a month. Are you sure you have those figures right?

www.*****************.com
 

DingDing

Frequent Poster
Messages
251
If you have ECB +0.75 stay on it, you will not do any better.

The bank might be advising you to change product but they have a vested interest in getting you off the tracker.
 
M

marico

Guest
p.s.: I'm in a similar situation to yourself, 20 year morgage initially, 9 years left and 120K left outstanding.

I'm paying €1100 per month.

Increasing your morgage is nonsense, pay it off quickly and be poor while you pay off your car loan. I'm paying €660 per month off that with two years left. Assuming I still have a job I'll be in a good position by then. Better to be poor now than having a morgage when the kids are going to college!

Eddie Hobbs, meh.
 

mucker2b

Registered User
Messages
5
Re: Should I get out of tracker

mucker2b,

How long do you have left to run on your mortgage?
How long are you willing to fix?

I have 25 years left to run on the mortgage. I hadn't any specific timeframes in mind as to how long I would fix it for but it's funny that people are ignoring Eddie Hobbs cos that's where I heard it first and that prompted me to post the question. The repayments are managable - <€500pm and that's with ~€15 lost from TRS.

I will be staying as I am so me thinks.

Thanks for the advice people.
 
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