Tracker Rate

steps_3314

Can anyone help me decide?

So basically my 3 year fixed rate term expires mid November 2009 and PTSB has presented me with the following options

LTV @3.65% (Meaning mortgage would be approx 200 less a month)
Tracker @4.25% (Meaning mortgage would be approx 100 less a month)
And some other fixed rates which are 5% + which i will ignore.

I find it strange as i have reading threads on the net and alot of people have being offered tracker rates lower than the LTV in which case then it would be a no brainer.

Although the LTV looks a better deal i keep hearing that the tracker is the way to go as once you turn it down you will never again get offered it.

However i know the cons of the variable also as this could rise significantly in the long run.

Im leaning towards the tracker at least i will have a rough idea of where im at.

Any advice appreciated.

jimoc

If you can wrangle any sort of fixed rate out of them for less than 4% that would be the one I would aim for.

Trackers are now tracking at a lot higher than they used to, previously they were 1% above ECB, I believe they are now 2/5% - 3%

Also banks seem to be leaning more towards 'screw the ECB, raise 'em anyway' type lending, where they are just going to raise rates when they want to, so that could affect the LTV rate sometime soon.

steps_3314

jimoc wrote: »

If you can wrangle any sort of fixed rate out of them for less than 4% that would be the one I would aim for.

Trackers are now tracking at a lot higher than they used to, previously they were 1% above ECB, I believe they are now 2/5% - 3%

Also banks seem to be leaning more towards 'screw the ECB, raise 'em anyway' type lending, where they are just going to raise rates when they want to, so that could affect the LTV rate sometime soon.

The 2 Year fixed was 5.25% and the 5 Year fixed was 5.75%

I think the rates that were offered to me could have being better to be honest.

I wonder can i haggle with the bank.

jimoc

Most definitely you can
Banks just give people figures that they think they will pay without complaint, hoping they don't do their own research.

If you are currently in positive equity you have an excellent chance of renegotiating as banks are currently desperate to get in some low risk debt.
Have a look at http://www.mortgages.ie/index.cfm/spKey/home.mortgage_rates.html for some interest rates, BOI or AIB are looking good at the moment, especially the BOI 5 year fixed at 3.30

steps_3314

jimoc wrote: »

Most definitely you can
Banks just give people figures that they think they will pay without complaint, hoping they don't do their own research.

If you are currently in positive equity you have an excellent chance of renegotiating as banks are currently desperate to get in some low risk debt.
Have a look at http://www.mortgages.ie/index.cfm/spKey/home.mortgage_rates.html for some interest rates, BOI or AIB are looking good at the moment, especially the BOI 5 year fixed at 3.30

Pretty sure like a lot of people we are in negative equity which is fine as we are not intending to try and sell our house anytime soon but would have liked to negotiate a nice rate that would allow us to overpay our mortgage every month with the view to reducing the term lent.

I may just take a chance on the LTV rate and see what happens. Like the previous poster said the ECB tracker rates are not as generous as they used to be.

Ogham

jimoc wrote: »

Most definitely you can
BOI or AIB are looking good at the moment, especially the BOI 5 year fixed at 3.30

That BOI 5 Yr Fix is 3.99% (3.3% is the APR which is meaningless for fixed rates)

See More Mortgage Rates Here

patbrady877

I had similar option with my bank and took the Varialbe option - the time will come to move into fixed, but when they are low - i decided to take advantage!

fussyhussey

Hi All

Sorry for barrelling in on ye're conversation but ye seem to have a way better idea about this stuff. I'm about to take a mortgage. Tracker hasn't been given to me as an option. Varibale is currently at 2.67% and 3 year fixed is at 3.69%. Everyones telling me hang on to variable while its so low, but they're also saying that interest rates are due to rise, even if the ECB don't the banks surely will. So my thinking is, yeah it might be inconvenient for the first 6 months to a year, but the fixed could pay up for the final two years. Invariably (no pun intended) if the rates go up the fixed rate offered will go up too

Have I oversimplified this somewhere?

Thanks in advance!

Ogham

fussyhussey wrote: »

Hi All

Sorry for barrelling in on ye're conversation but ye seem to have a way better idea about this stuff. I'm about to take a mortgage. Tracker hasn't been given to me as an option. Varibale is currently at 2.67% and 3 year fixed is at 3.69%. Everyones telling me hang on to variable while its so low, but they're also saying that interest rates are due to rise, even if the ECB don't the banks surely will. So my thinking is, yeah it might be inconvenient for the first 6 months to a year, but the fixed could pay up for the final two years. Invariably (no pun intended) if the rates go up the fixed rate offered will go up too

Have I oversimplified this somewhere?

Thanks in advance!

For the fixed rate to make you better off than the variable over 3 years - is possible but I would say unlikley.
ECB rates look like they will be steady till at least mid 2010. The banks may put variable rates up regardless of ECB rates - but if it would need , for example, to rise to 4% within about 15 months for you to start being better off . (A rise of 1.33% ). Personally I would go for that variable rate. (Put the extra you would have pais on the fixed rate into a savings account and use it to cover any increase in the variable rate taht might happen)