Tracker Mortgage rate - What exactly is it. ?

Benedict XVI

There was a guy on the Last Word last week advising that people should get out of variable rates and move to a ‘tracker’ rate. I did not hear the reasons why though but he did say it was very advisable with the upcoming rate increases.

I have tried look for info on the net about it but with little success.

Can anybody give me details on tracker rates and why I should switch from my current variable rate?

Thanks.

copacetic

Benedict XVI wrote:

There was a guy on the Last Word last week advising that people should get out of variable rates and move to a ‘tracker’ rate. I did not hear the reasons why though but he did say it was very advisable with the upcoming rate increases.

I have tried look for info on the net about it but with little success.

Can anybody give me details on tracker rates and why I should switch from my current variable rate?

Thanks.

with a tracker your rate 'tracks' the ECB rate, you are always a certain % above it, usually 0.75 or 1%.
You know if ECB raises rates 0.25, yours goes up 0.25.

With the variable, your bank could only pass on 0.25 or maybe 0.30 or 0.35 or maybe you would get lucky and they would only pass on 0.2 (unlikely). However you have no control over what they do with the rate.

johnnyrotten

I changed to the ULSTER Bank tracker. Its will never go above 0.95% more than the ECB rate.
I changed to Ulster bank from PTSB . Ulster Bank will pay all fees involved including Legal fees, valuation fees etc.