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Port tracker mortgage or fixed rate

  • 30-01-2020 1:36pm
    #1
    Irishnaomes
    Registered Users, Registered Users 2 Posts: 24 ✭


    I have a 2.25% above ECB Tracker. I can port whatseft and that becomes 3.25%. But there are fixed rates of 2.2% out there. Everyone says don't lose your tracker but I dont think that's the right thing to do. Advice appreciated


Comments

  • #2
    Zaph
    Registered Users, Subscribers, Registered Users 2 Posts: 47,351 ✭✭✭✭Zaph


    A lot depends on a) how long you have left on your mortgage; and b) how long you can fix the rate for. If there's little difference between the two then fixing at 2.2% would seem to be the better option as it's inevitable that rates will go up at some stage and you're already paying more than that. I'm guessing the 3.25% rate is variable? I certainly wouldn't be giving up my tracker for that.


  • #3
    Irishnaomes
    Registered Users, Registered Users 2 Posts: 24 ✭Irishnaomes


    Zaph wrote: »
    A lot depends on a) how long you have left on your mortgage; and b) how long you can fix the rate for. If there's little difference between the two then fixing at 2.2% would seem to be the better option as it's inevitable that rates will go up at some stage and you're already paying more than that. I'm guessing the 3.25% rate is variable? I certainly wouldn't be giving up my tracker for that.

    I have 24 years left and I am bringing it as a tracker so it would still be a tracker at 3.25 forever. But as ECB is 0% the only way is up and I can get fixed for 5 years. With that in mind would you still say staying with tracker is better?


  • #4
    Zaph
    Registered Users, Subscribers, Registered Users 2 Posts: 47,351 ✭✭✭✭Zaph


    Sorry, I'm not sure I understand. You can move to another tracker, but at a higher margin of 3.25%. Is that right? If it is, why you'd want to do that. Your current tracker rate is essentially the same as what you'd be on fixed, so really the question is whether you think rates will rise in the next five years. If you can move to the fixed rate and move back to a tracker after 5 years that would be a good move, but if not you have to take a view on what fixed or variable rates will be in five years, and your crystal ball is as good as anyone else's.


  • #5
    Irishnaomes
    Registered Users, Registered Users 2 Posts: 24 ✭Irishnaomes


    Zaph wrote: »
    Sorry, I'm not sure I understand. You can move to another tracker, but at a higher margin of 3.25%. Is that right? If it is, why you'd want to do that. Your current tracker rate is essentially the same as what you'd be on fixed, so really the question is whether you think rates will rise in the next five years. If you can move to the fixed rate and move back to a tracker after 5 years that would be a good move, but if not you have to take a view on what fixed or variable rates will be in five years, and your crystal ball is as good as anyone else's.
    I'm moving my tracker from current apartment to new house. They allow you to bring it with you (port your mortgage) but add 1%. Thanks for the advice. I think confirms decision for me.


  • #6
    Darc19
    Registered Users, Registered Users 2 Posts: 3,817 ✭✭✭Darc19


    A 2.25% tracker is poor value.

    A 3.25% tracker is appalling value.

    If ecb goes up 1%, your rate becomes 4.25% the next day.


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  • #7
    Zaph
    Registered Users, Subscribers, Registered Users 2 Posts: 47,351 ✭✭✭✭Zaph


    Darc19 wrote: »
    A 2.25% tracker is poor value.

    A 3.25% tracker is appalling value.

    I agree, it seems pretty high. My tracker is ECB + 0.5%, after I moved from my original lender where I was paying ECB + 1.35%.


  • #8
    Irishnaomes
    Registered Users, Registered Users 2 Posts: 24 ✭Irishnaomes


    Zaph wrote: »
    I agree, it seems pretty high. My tracker is ECB + 0.5%, after I moved from my original lender where I was paying ECB + 1.35%.

    When did you move? So you went from tracker with one bank to tracker with another?


  • #9
    Zaph
    Registered Users, Subscribers, Registered Users 2 Posts: 47,351 ✭✭✭✭Zaph


    Irishnaomes wrote: »
    When did you move? So you went from tracker with one bank to tracker with another?

    It was quite a while ago, maybe 12 or 13 years ago at this stage. I wasn't happy with the original bank for various reasons, so I moved and managed to get a much better deal as well as an added bonus.


  • #10
    Irishnaomes
    Registered Users, Registered Users 2 Posts: 24 ✭Irishnaomes


    Zaph wrote: »
    It was quite a while ago, maybe 12 or 13 years ago at this stage. I wasn't happy with the original bank for various reasons, so I moved and managed to get a much better deal as well as an added bonus.

    Ah I got mine 12 years ago. Last day they gave out trackers before the crash. Bad timing. Thanks for the advice. I think I'll shoo around and leave my tracker. Thanks.


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