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Mortgage ECB vs Variable rates

  • 12-10-2015 9:19am
    #1
    privateBeavis
    Registered Users Posts: 303 ✭✭


    Hi,

    In relation to tracker mortgages the ulster back website has this on moving house:

    "You cannot transfer your existing tracker rate to your new home, however you can choose our 10 year European Central Bank (ECB) tracker rate of ECB+2.00% (3.3% APR variable) for loan amounts up to your current level of tracker borrowings."

    This sounds like a good option if we have to move but my question is do banks variable rates "generally" go up and down with the ECB rates. e.g. if the ECB rate goes up to 4-5% before the 10 years are up would banks variables rate more than likely have gone up also.

    Just wondering is there much risk in this offer of ECB going up and would have been better on some other variable or fixed then variable option or is this most likely a good option?


Comments

  • #2
    bonyn
    Registered Users, Registered Users 2 Posts: 297 ✭✭bonyn


    Put it this way. If you're on ECB+ and the ECB rates go up, you can always switch to variable.
    However, it's not so long ago that even as ECB were cutting their rates, PTSB increased their standard variable to almost 6.5%.


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