what would be the best mortgage option to go with.....

J

joel

Guest
Hi,
I am in the process of taking out a mortgage with PTSB. Just wondering is it good to go with 1 Yr fixed and then move to Tracker. OR Tracker from the beginning.
FYI, mortgage over 250K.

Thanks in advance
Joel
 
Ignore the one year discount deals and concentrate on the longer term picture. In many cases the cheapest one year discouts come from those offering the least competitive standard variable/tracker rates. Choose the most competitive standard tracker/variable rate and treat any additional one year discount as a bonus. Use this calculator to check the long term costs of any specific mortgage rate, term, repayment strategy etc.
 
Thanks ClubMan.
I decided to take PTSB, they are offering me 3.1 tracker & 1 Yr. fixed for 2.74 . I think I should go with 1 yr. fixed first & after 1 Yr. move to Tracker (whatever the rate at that time!). Is there a possiblity that there won't be tracker at all after 1 yr. In that case my decision of going with 1 yr. fixed rate might back fire... what do you think?

Thanks
Joel
 
What is the amount of your loan and the price of the property?

I decided to take PTSB, they are offering me 3.1 tracker & 1 Yr. fixed for 2.74 . I think I should go with 1 yr. fixed first & after 1 Yr. move to Tracker (whatever the rate at that time!).

Judging by the best buys lists PTSB's tracker rate is ECB + 1.1% which may only be bettered if your LTV (loand to value) ratio is lower than 60% or something like that.

Is there a possiblity that there won't be tracker at all after 1 yr. In that case my decision of going with 1 yr. fixed rate might back fire... what do you think?

Not sure. Try getting it in writing that you can switch to their tracker at the end of year one.
 
Its 300K and I am going to take out 92% of the price, which means it will be more 60% LTV.

I will ask them to give it in writing that I can move to tracker after 1 yr. fixed without any problem.

Thanks
Joel
 
Hi Joel...

Did you ever get to talk to PTSB about this 1 year fixed and then switch to Tracker rate of ECB + 1.1 ? (or anybody out there!!)

Im about to go for this option myself as it seems the best at the moment although if anyone has opinions against PTSB then please let me know.

To Clubman.....

I understand the 1 year fixed of 2.74 is only a gimmick to get you sucked in but even without this 'gimmick' you are getting 3.1 Tracker which seems the best around. Taking this away still leaves you with the best current option my opinion (probably not the best judge!!) and the 2.74 is a bonus... Is there a better option for a 92% loan?

If anyone knows for sure that the 2.74% can then be switched to the ECB Tracker can they let me know.

Thanks
 
IIB's 1 year fixed rate is lower at 2.69% and you can switch to a tracker rate of ECB +1.1% after the year, their tracker for under 250k is lower than PTSB's also at ECB + 1.25% as opposed to ECB + 1.4% which PTSB offer, tho i suppose this wont apply in your case

id go for the one year fixed and then go on to a tracker if it was me!
 
You might be able to save 600+ for the first year if you take 1 Yr. fixed but there is the risk that 3.1 Tracker may NOT be there when you come out of 1 yr. fixed if thats the case then you will lose out. Since the bank may decide to go for ECB+1.2 or 1.3 tracker (which mean 3.2 or 3.3 for the new business).
I took the 3.1 tracker since I don't want to take the chance.Thnks

-Joel
 
Is it possible to agree at the start with any Bank that you automatically go onto the tracker rate after the year is up?

I see BoI have a 'rolling' discount and then tracker rate of 3.3% but they make no mention of rolling onto the 3.1% for 92% loan of 300K ..

Has anybody agreed up front that they could take the tracker rate after year 1 as it would be silly to save 600 and then lose out in the long run. Being considered not 'New business' after year 1 seems harsh if they dont explain this upfront.
 
I agreed the following with BOI last summer:

Tracker mortgage of ECB rate + 1.1%, with a discount for the first 12 months of 0.56% bringing the rate to 2.54%.
Not bad at all !!
 
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