Rate Options
- Tracker Variable Rate – a tracker rate is set at a fixed percentage (margin) above the European Central Bank (ECB) rate at the start of your mortgage. This extra percentage above the ECB rate will stay the same until you have paid off your mortgage. If the ECB interest rate rises your tracker rate will automatically rise as well. The opposite happens if the ECB rate falls.
- Standard Variable Rate – a standard variable rate can rise and fall inline with general changes in interest rates. When the ECB rises, your mortgage lender can increase your variable rate, therefore your repayments will increase. The opposite can happen if the ECB rate falls. Most lenders have now removed this option.
- Fixed Rate – with a fixed rate mortgage your interest rate and monthly repayments are fixed for a set time. After the fixed period your rate changes to a variable or tracker rate, or you may decide to get another fixed option. If you are in a fixed rate contract, you may face penalties if you want to switch lenders or pay part of your mortgage off during the fixed period.
Contact one of our Qualified Financial Advisors for Independent Advice
Regulatory Information:
Warning: Your home is at risk if you do not keep up payments on a mortgage or any other loan secured on it.