Friday, 26 August 2011

Despite what the banks say — Don’t give up your tracker mortgage

Despite what the banks say — don’t give up your tracker mortgage | Irish Examiner

The man was somewhat surprised as he has a secure income and has not missed any repayments on his loans, either on his home or on a couple of investment properties that he bought during the boom years. His bank manager seemed reasonably reassured but then made a suggestion: would he like to accept a lump sum as an inducement to give up his tracker mortgages? The businessman said no. He reckons that if you have a 20-year €300,000 mortgage the benefit of being on a tracker mortgage — one that guarantees the lender will charge only an agreed premium over the prevailing European Central Bank base rate — could be worth €100,000 in lesser interest rate payments over the life of the mortgage than would be available on a standard and more expensive variable rate mortgage. He was being offered €15,000 to switch, which is quite clearly a bum deal, for the borrower at any rate if not for the bank...



Read more: http://www.irishexaminer.com/opinion/columnists/matt-cooper/despite-what-the-banks-say-dont-give-up-your-tracker-mortgage-165424.html#ixzz1W862ScVr
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