Mortgage Holders Get a Boost
TRACKER MORTGAGE HOLDERS GOT A BOOST YESTERDAY
Mortgage holders get a boost
Tracker Mortgage holders got a boost yesterday, when the European Central Bank (ECB) cut interest rates to a record low of 0.05 per cent in an effort to kick-start the ailing euro zone economy.
While Ireland’s economy has improved since exiting the bailout, concerns are growing about the state of the euro zone economy as a whole, with low inflation a particular concern, and countries such as France and Italy struggling to emerge from recession.
Tracker variable rate / tracker mortgages - this is set at a fixed percentage or 'margin' above the ECB rate. For example, it could be set at the ECB rate plus one percentage point. So, if the ECB rate rises by a percentage point, so does your rate. It will also 'track' the ECB rate when this rate goes down.
Tracker rates continue over the term of your mortgage. None of the providers offer tracker mortgages to new customers any more. If you already have a tracker mortgage, you have the benefit of a guaranteed link to the ECB rate.
So all you luck tracker mortgage holder will be getting confirmation shortly of the rate reduction
Switching out of a tracker mortgage
If you switch from a tracker mortgage, you may not have the option to get a tracker rate again. So, you need to carefully consider your options. You should get independant advice before making a decision to switch out a tracker.
Coming to the end of your fixed rate
If you are coming to the end of a fixed rate mortgage and expect to revert to a tracker rate, find out whether a tracker rate is available to you, if it is not mentioned in your original loan offer then talk with your provider
If you have any questions on your mortgage why not give us a call