Tracker mortgage

spothediference

luckily enough im on a tracker mortgage at present, just wondering how long give or take it would be a good idea to stay on it, ive also heard some lenders offer u a cash sum to go back on a fixed rate,is this true? thanx in advance.

Paulw

Why, oh why, would you go to a fixed rate mortgage?

I've looked, and looked, and even if interest rates went up by 3%, then my tracker would still be cheaper than any fixed mortgage out there.

I'm not surprised banks would offer you cash now, for a move, since in the long term they'll earn a lot more from your move.

fricatus

spothediference wrote: »

luckily enough im on a tracker mortgage at present, just wondering how long give or take it would be a good idea to stay on it, ive also heard some lenders offer u a cash sum to go back on a fixed rate,is this true? thanx in advance.

What rate are you on? ECB plus how much?

AFAIK, the banks aren't doing trackers any more, which is proof that they're not profitable, i.e. proof that they're good for you, not them!

Think long and hard before you move out of a tracker, I would say. Consider how far up rates could go, and when. They were near 5% recently, and as soon as real economic recovery comes around (no matter what happens in Ireland) they could go back up to those levels within 2-3 years.

You'll have to calculate how much a fixed or variable rate would cost you, versus the tracker, and see how the sums add up.

helimachoptor

My trackers is ECB + 2.25% i dont like it

Paulw

helimachoptor wrote: »

My trackers is ECB + 2.25% i dont like it

Ouch. That's a very high rate. That's 1% more than I'm paying on mine (PermanentTSB).

Shop around though. I'd still say that your tracker will be cheaper (to you) than any fixed you'll find.

helimachoptor

Paulw wrote: »

Ouch. That's a very high rate. That's 1% more than I'm paying on mine (PermanentTSB).

Shop around though. I'd still say that your tracker will be cheaper (to you) than any fixed you'll find.

Yeah, came off a 2 year fixed in April, but in the original contract it said I could get a tracker but didnt specify a rate, so PTSB say I can get a tracker ECB + max of 2.25% of course they charge the max

OP stay with the tracker!

spothediference

ye im with the tsb also , on a tracker 4 the past year and a half.just wondering now theyl obviously want me on a fixed1, but by law ie-when the current contract is up can i still stay on tracker

spothediference

spothediference wrote: »

ye im with the tsb also , on a tracker 4 the past year and a half.just wondering now theyl obviously want me on a fixed1, but by law ie-when the current contract is up can i still stay on tracker

also is it up to them to contact me when the contract is up. have heard from sum people they more or less do what they like.

southofnowhere

spothediference wrote: »

also is it up to them to contact me when the contract is up. have heard from sum people they more or less do what they like.

What do you mean by 'current contract'?

I also have a tracker and no intentions of parting with it.

As astutely observed above, the fact that they're no longer available tells its own story.

Paulw

I was on a fixed rate for the first year of my mortgage (I wanted to budget and know exactly how much it would be for the year), but once that ended, I moved to the tracker. I'm paying ECB+1.25%.

Any time there has been a change, or option to change, I've always received a letter from PTSB, giving me the options.

I've no plan on moving off my current tracker.

Scottie99

So what's the consensus on the long term interest rates??
Are we looking at between 5-6% or 6+?

The_Conductor

Scottie99 wrote: »

So what's the consensus on the long term interest rates??
Are we looking at between 5-6% or 6+?

Normalisation of interest rates according to the ECB is 4.5%. Generally the Irish institutions charge 1.25-1.5% above this- for low LTV owner occupied properties (and about 1% more for investment properties).

So- normal rates of 5.75-6% for owner occupiers, and up to 7% for buy-to-let properties?

Of course the banks don't source their mortgage funding from the ECB- but it suits them to use their rates........

The Minstrel

Has anyone any thoughts on this article "trackers under threat":

http://www.irishtimes.com/newspaper/pricewatch/2010/0503/1224269584985.html

This LTV route that they are talking about seems like a bit of a tenuous reason to renege on the tracker rate. Is it common that the small print of a contract would have something about the terms of the contract changing if the owner does not occupy the house?