Flexible Tracker Mortgage (Please note: not available in Ireland at present)

A flexible tracker mortgage is a mortgage with a variable rate of interest, which tracks the European Central Bank (ECB) base rate. Typically, mortgage lenders offer tracker mortgages at a preset percentage over the ECB rate. (For example, 1% over ECB).

If the ECB drops its rates, so does the mortgage lender. If the rate is increased by the ECB, your mortgage lender will follow suit.

How do tracker mortgages differ from standard variable rate mortgages?

The interest rate on a standard variable mortgage is not linked to the ECB base rate. This means that the mortgage lender can increase the monthly repayments on standard rate mortgages whenever they want.

What makes a tracker mortgage flexible?

There are a few flexible options that are usually only available on tracker (and variable rate) mortgages. These options are usually not available on fixed rate mortgages.

• Overpayments
  You can make regular or occasional extra payments with no penalties.
  
  
• Skip Months
  There are expensive times of the year, like Christmas, when our budgets are stretched. Why not take these months off, and pay your mortgage over the remaining 10 or 11 months.
  
  
• Mortgage holidays:
  Take a break from paying your mortgage.  Some lenders will allow payment breaks for 3 - 6 months. This can be very beneficial during maternity breaks, career breaks or in the case of redundancy.
  

Who does a flexible mortgage suit?

• Self Employed people who have seasonably quiet times of the year, may be interested in paying their mortgage over 10 months instead of 12.
  
  
• People on a variable income - especially those who get a monthly, quarterly of yearly bonus and who can make regular overpayments.
  
  
• People planning a career break, pregnancy, or round the world travel trip can avail of a payment holiday.
  
  
• People with a lot of equity in their property are attractive to the lenders, so they usually get the best flexible mortgage rate.

Who will a flexible mortgage not suit?

• First time buyers often prefer the security of a fixed rate, so they can budget for their repayments more easily.
  

Looking for the best flexible mortgage rate? Get a No Obligation Quote

Please note:
Mortgage products vary from lender to lender, so if you are interested in a particular option, please ask your mortgage consultant which lenders offer the option.

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• Approval in Principle - Why it's so Important
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