Should i switch from tracker to fixed rate

J

jphegarty

Guest
Hi
Apologies if im repeating whats in other threads

I am currently on a tracker which is ECB +.8%. Its expected that the ECB rate will come down again today and i was just wondering should i try to fix at this stage or should i stay with my tracker

Thanks
 
Totaly depends on yr personal situation and yr prespective on the future.

Fix if you need to be sure your mortgage repayments stay the same for a given period of time. Fixing can be inflexible if you are likely/forced to move within the fixed timescale

Stay with tracker if you can cope with any increase or need flexiblity.
 
Fix if you thing inflations is going to rise dramatically over the next few years. Many economists thing it will rise but a lot of them do not think it will be a mayor factor, but what does anyone really know?
It’s a gamble either way but I think you should keep your tracker. I would find it hard to go into a bank and pay them more monthly on the basis of what may or may not happen in the future.
 
I am thinking of staying at the tracker rate alright to be honest but any other opinions are welcome
 
Stick tight with your tracker JP. I just think that banks never really lose with fixed rates.

0.8 + ECB is a great rate.
 
It is a great rate alright Cayne which is why i was slow to fix when i heard it in the media that people were being advised to fix given the ecb rate decreases

People who are getting poorer deals than what im getting maybe better off alright but i will stick tight.

thanks for the feedback guys
 
Keeping it simple and lay man terms.JP the Tracker mortgage is one to choose as is coming down and will remain so for next year or so when it may slowly creep up. Personaly I would and will choose a Fixed rate if and when it drops to a modest rate, at the moment its not a runner in comparison to ECB.
 
What are the fixed rates offered at the moment as a matter of interest?
 
Jp, yikes do not know off top of head, just google.ie "mortgage interest rates" should find a provider/list of rates.

Maximus152
 
Stick with the tracker - it's better long term. If you fix now, chances are you won't be allowed back onto a tracker when the fixed term expires and you'll be put on the variable instead. ECB +.8% is about as good as it gets.
 
I would stay on the tracker at that margin.
If you fix you will be "out of the money" for the forseeable future. For example the best 3 year fixed rate available is AIB at 3.1%. After this morning's cut you are on 2.05%. It would take an ECB increase of more than 1% before the fixed rate would be less than your tracker. The best 5 year rate I can see is 3.6%. Again, over 150 basis points above your new tracker rate.

If the ECB pushes rates up to 4 or 4.25 % again in the coming years, you will have been in the money long enough on the tracker to outperform the fixed rate option over 3 or 5 years.

As stated above, you will not get the tacker back either and variable rates are typically 1.75% above ECB.

If you wish, you could fix your repayment and not the rate by asking the bank what the payment would be on a 5 year fixed rate. Then write to them to increase the monthly repayment to that. You would stay on the tracker but clear your mortgage quicker.
 
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