Is this a good thing?
Don’t have a mortgage so I’ve no idea
Is that not one of the things that caused the 2008 recession?
Edit – I was wrong and have been getting further info in replies.It wasn’t an attempt to blame it but a genuine question and in learning.
“Tracker -type” mortgage = Variable rate mortgage
It’s either a tracker or it isn’t, smells like bank bullshit from 20 years ago.
[deleted]
Seems like a lot of people on this bus don’t know what a tracker mortgage is
I don’t know what a tracker mortgage is.
So for less than 80% LTV, they’ll give you a 3.34% rate next month (ECB plus their 0.9 loading) and with the assumed reductions in euribor rates to come, 0.5% by years end, that would mean a reduction maybe to 2.8% ISH (probably higher given it works off the average 12 month euribor rate).
Assuming the ECB don’t drop interest rates below 2% again, then this ought to stay quite competitive in the market for the year beyond that, plus no limits on overpaying and allegedly able to switch off to a fixed rate any time.
Hard to see interest rates increase in the near term, but if they did, every 0.5% increase by ECB could mean a few extra hundred euro on this mortgage per month too.
Food for thought.
Is there any downside of this vs a flexible mortgage? Sounds like the rate is the ECB + 0.9%. In the event of the ecb rates going up, wouldn’t all other banks shoot up their rates anyway?
Avant are offering this, but they also offer 20-30 year mortgages with the rate fixed for the entire term. To each their own, but after the last 20 years and with where the next 5+ may go, the latter sounds a much sager bet to me.
11 comments
What’s a tracker mortgage?
“I don’t know what a tracker mortgage is!”
Is this a good thing?
Don’t have a mortgage so I’ve no idea
Is that not one of the things that caused the 2008 recession?
Edit – I was wrong and have been getting further info in replies.It wasn’t an attempt to blame it but a genuine question and in learning.
“Tracker -type” mortgage = Variable rate mortgage
It’s either a tracker or it isn’t, smells like bank bullshit from 20 years ago.
[deleted]
Seems like a lot of people on this bus don’t know what a tracker mortgage is
I don’t know what a tracker mortgage is.
So for less than 80% LTV, they’ll give you a 3.34% rate next month (ECB plus their 0.9 loading) and with the assumed reductions in euribor rates to come, 0.5% by years end, that would mean a reduction maybe to 2.8% ISH (probably higher given it works off the average 12 month euribor rate).
Assuming the ECB don’t drop interest rates below 2% again, then this ought to stay quite competitive in the market for the year beyond that, plus no limits on overpaying and allegedly able to switch off to a fixed rate any time.
Hard to see interest rates increase in the near term, but if they did, every 0.5% increase by ECB could mean a few extra hundred euro on this mortgage per month too.
Food for thought.
Is there any downside of this vs a flexible mortgage? Sounds like the rate is the ECB + 0.9%. In the event of the ecb rates going up, wouldn’t all other banks shoot up their rates anyway?
Avant are offering this, but they also offer 20-30 year mortgages with the rate fixed for the entire term. To each their own, but after the last 20 years and with where the next 5+ may go, the latter sounds a much sager bet to me.
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