Tracker mortgage customers urged to switch to more attractive fixed rates while they still can

Tracker mortgage customers with AIB and Ulster Bank are running out of time to lock in to attractive fixed rates, according to a consumer finance expert.

While the two banks have some of the lowest fixed rates in the market at the moment, it is expected these rates will be gone in the coming weeks.

With a number of interest rates increases announced by the European Central Bank ( ECB) in recent months, and an expected fifth rate rise this week, getting a more attractive fixed rate has never been more important. 

Mark Coan, of consumer finance advisory firm Moneysherpa.ie, urged people to get financial advice before make any such move. 

He urged Ulster Bank and AIB tracker rate customers to get their fixed rate letter offers ASAP. 

"Their fixed rates are 1% cheaper than market right now, they won’t be for long. Get your letter and call a broker," Mr Coan said. 

"Most tracker customers looking to fix to avoid coming rate hikes will get the best deal by switching to a new lender, however there are some notable exceptions to this rule," Mr Coan writes on the Moneysherpa website. 

"Tracker customers with Ulster bank are still able to fix for 4 years with Ulster bank at rates as low as 2.25%. These rates are almost 1% below any other lender and may even be below the cost of funding these loans. 

"If you’re an Ulster tracker customer you should request your fixed rate offer letter as soon as possible and weigh up your options before these rates are increased. 

"AIB group which includes Haven and EBS, are the next best choice for tracker customers looking to fix with their own bank, with 4 year fixed rates on offer at just above 3%," Mr Coan said. 

With the industry expecting AIB to increase their rates any day now, "it’s worth getting your fixed offer letter if you are with any of these banks," he said.