Tracker Mortgage

David Kerr

Boards Admin

Joined Jun 09, 2010 at 18:36

31 posts

Dear Rose Coffey,

 

Thank you for your question.

 

The good news for you is that if you are repaying your mortgage on a tracker rate, you are paying the smallest rate of interest possible for your mortgage - the bank you are with is likely making a loss on your mortgage in fact. Like many tens of thousands of people who are on tracker mortgages, it is not the % interest they are paying which is the issue but the € repayment per month.

 

Tracker mortgages are no longer available and will likely not be available again in the foreseeable future, so the option to move off the tracker and then take up a new tracker later on, is not likely. 

 

Your bank may want you to move away from a tracker, but in doing so you are benefiting the bank, and not yourself over the long term. The general consensus would be to stay with your tracker mortgage and not move to a standard mortgage.

 

However, you do have some options open to you. 

 

In general, the consensus would be to contact your bank and explain that your circumstances may have changed and you are looking for options to repay less money per month - some banks have introduced a process for this and have application forms for "reduced mortgage repayments". In many cases, your local branch manager deals with these requests. Tell your bank you are happy to stay on a tracker mortgage and want to remain on your tracker mortgage, but you want your repayment reduced. Some banks are open to listening to individual circumstances, especially where you make the first move in contacting them, and may offer you a repayment holiday or other form of extension to your mortgage term.

 

Once you have your bank's response to your request for reduced monthly repayments, you can make a decision on what to do.

 

I hope this helps.

 

best regards

 

David.