Bank of Ireland - fixed or Tracker. need a quick answer please

tjj1984

Hi
i spoke to Bank of Ireland this morning as my mortgage is up for re newal end of next month
i was currently on a 3 years fixed at interest rate 6.02% paying £586 PM
the lady informed me i would automaticly go on to their Tracker mortgage
at 2.49% now id be paying £377 PM. which is great

Just it sounds too good and simple?

will i be paying £377 PM for a while then suddenly be paying 100s more like 800PM? i would not want that

Any info. advice is appreciated thanks i just need peice of mind before commiting to a Tracker

DannyboyMidlands

But that's the gamble with a tracker (or SVR) isn't it. It can vary. Nobody can tell you when this might happen or by how much rates will rise or fall.

If you want certainty then you should go for a fixed rate like last time.

tjj1984

DannyboyMidlands wrote: »

But that's the gamble with a tracker (or SVR) isn't it. It can vary. Nobody can tell you when this might happen or by how much rates will rise or fall.

If you want certainty then you should go for a fixed rate like last time.

but still. i asked the woman if i could be paying 100s more after a while and she said no the country would callapse if that happened. the rate only ever changes like half a percent when ever it does change

DannyboyMidlands

Luckilly for her it's your money on the line not hers.

How long is "a while"? Rates aren't likely to rise much by next week but presumably you need to think about where they could be by next year or the year after and what you would do in a worst case scenario?

TadleyBaggie

tjj1984 wrote: »

but still. i asked the woman if i could be paying 100s more after a while and she said no the country would callapse if that happened. the rate only ever changes like half a percent when ever it does change

If you look at historic BoE interest rates, they have clearly run at 10 to 20 times the current rate without the country collapsing. The problem is, no one really knows what will happen in 5 to 10 years time.

TadleyBaggie

I remember getting a new mortgage and with a couple of months the rate going up to 15%!