Tracker mortgages are among the most valuable and most discussed mortgage products in Ireland. They are no longer offered to new customers, but tens of thousands of Irish homeowners still hold trackers — and in 2026, as ECB rates fall, tracker holders face an important decision: keep the tracker, or fix?
What Is a Tracker Mortgage?
A tracker mortgage has an interest rate that moves directly in line with the ECB main refinancing rate (the central rate set by the European Central Bank), plus a fixed margin set at the time you took out the mortgage.
Example: If your tracker is “ECB + 0.75%” and the ECB rate is 2.5%, your current mortgage rate is 3.25%. If the ECB cuts rates to 2.0%, your rate automatically drops to 2.75% — without any action on your part.
The fixed margin (the “+ 0.75%” in the example) stays constant for the life of the mortgage. This margin was set when you first took out the tracker, and cannot be changed by the lender.
Irish banks were forced to remove tracker mortgages from the market in 2013 when ECB rates began to rise significantly. Banks could no longer profitably offer a product that tracked a central rate they could not control. This is why trackers are so valuable — you cannot get a new one.
Tracker Rates in 2026
As of 2026, the ECB rate is falling from its 2023 peaks. Current ECB rates and the impact on common tracker margins:
| Tracker Margin | ECB Rate | Your Rate |
|---|---|---|
| ECB + 0.5% | 2.25% | 2.75% |
| ECB + 0.75% | 2.25% | 3.0% |
| ECB + 1.0% | 2.25% | 3.25% |
| ECB + 1.5% | 2.25% | 3.75% |
| ECB + 2.0% | 2.25% | 4.25% |
Trackers with tight margins (ECB + 0.5% to ECB + 1.0%) are almost certainly at or below the best available fixed rates in 2026. Trackers with wide margins (ECB + 1.5% or more) may be comparable to or worse than the best fixed rates.
The ECB margin on your tracker is specified in your original mortgage contract. If you do not know it, call your lender — they must tell you.
Should You Fix Your Tracker?
This is the most common question among Irish tracker holders in 2026. The answer depends on three things:
1. What Is Your Current Tracker Rate?
If your tracker rate today is below 3.0%, keeping it is almost certainly the right choice. The best available fixed rates in Ireland in 2026 are around 3.1–3.4% — you would be locking in a rate significantly higher than you are currently paying.
If your tracker rate is above 3.5–4.0%, there may be fixed rate options worth considering — but even then, you need to weigh future ECB rate expectations.
2. What Do You Expect From ECB Rates?
Tracker mortgages benefit from ECB rate cuts. As of 2026, the ECB is in a rate-cutting cycle. If rates continue to fall:
- A tracker at ECB + 0.75% on today’s ECB rate of 2.25% is 3.0%
- If the ECB cuts to 1.5%, your tracker drops to 2.25%
- If the ECB cuts to 1.0%, your tracker drops to 1.75%
No fixed rate available today can match these outcomes if ECB rates fall significantly.
Fixing locks in certainty but forfeits the benefit of future ECB cuts.
3. Do You Value Certainty or Flexibility?
Some homeowners prefer knowing exactly what their repayment will be for 3, 5, or 10 years — even if it costs a little more. Others prefer the variable nature of a tracker if it means capturing rate cuts automatically. This is a personal preference that depends on your household budget, your income stability, and your appetite for risk.
For most tracker holders in 2026 with margins below 1.0%: keep the tracker. The embedded value of a lifetime ECB-linked rate with a tight margin is enormous — and giving it up for a fixed rate is almost always the wrong call unless your individual circumstances demand certainty.
The Tracker Scandal and Redress
Thousands of Irish homeowners lost their tracker mortgages in the mid-2000s when lenders wrongly moved them off trackers onto standard variable rates. This was the tracker mortgage scandal — the largest consumer finance scandal in Irish history.
Following regulatory action by the Central Bank of Ireland, a major redress programme ran from 2016–2022. Over 40,000 affected customers were identified and compensated. Key points:
- Customers who lost their trackers were entitled to be restored to their tracker rate
- Compensation was paid for the additional interest charged during the period off the tracker
- PTSB and Bank of Ireland were among the largest payers of redress
If you believe you lost a tracker mortgage between 2004 and 2016 and have not received a redress letter, contact your lender or the Central Bank of Ireland.
Can I Switch Away From a Tracker?
Yes — you can leave a tracker at any time by switching to a new lender or re-fixing. However:
- You permanently lose the tracker. Once you leave, you cannot return to the tracker rate.
- Break fees may apply. Check your mortgage terms — some trackers allow early redemption without penalty, others do not.
- This is almost always a permanent financial decision. Think very carefully before giving up a low-margin tracker.
The only situations where switching off a tracker makes sense:
- Your tracker margin is very wide (ECB + 2.0% or more) and fixed rates are materially lower
- You need to move home and your new property requires a new mortgage (the tracker does not typically transfer)
- You are selling and do not need a mortgage on the new property
Tracker Mortgage: Key Terms Explained
ECB main refinancing rate: The benchmark rate set by the European Central Bank, announced roughly every 6–8 weeks. Irish tracker mortgages are linked to this rate.
Tracker margin: Your personal fixed addition to the ECB rate. Set at the time you took out the mortgage. Cannot be changed by the lender.
Standard variable rate (SVR): What you would revert to if you left a tracker without fixing. SVRs are typically higher than tracker rates and are set at the lender’s discretion — not linked to ECB. Avoid reverting to SVR.
ECB rate cut: When the ECB reduces its policy rate, tracker mortgages automatically become cheaper. In 2023, ECB cuts benefit tracker holders directly.
Bank of Ireland Tracker Holders: A Special Situation
A particularly active area of discussion in 2026 concerns Bank of Ireland tracker holders considering whether to fix. BOI offers a specific deal: if a tracker holder fixes and subsequently draws down a new BOI mortgage within 6 months, BOI will refund the break charge. This makes the option of temporarily fixing or upgrading to a better property slightly less costly.
However, the core advice remains: a low-margin BOI tracker is almost always worth keeping unless you are moving home and require new borrowing.
Frequently Asked Questions
What happened to tracker mortgage holders in Ireland?
Approximately 40,000 Irish homeowners were wrongly removed from tracker mortgages by lenders between 2004 and 2016. After a Central Bank investigation, all affected customers were identified and received redress (restoration of the tracker rate plus compensation for extra interest paid). If you believe you are affected and have not received a redress letter, contact your lender.
What is the current ECB rate in 2026?
The ECB has been cutting rates since late 2023 after the rate-hiking cycle of 2022–2023. Rates in 2026 are in the 2.0–2.5% range as the ECB continues its easing cycle. Your current tracker rate is your margin plus the current ECB rate. Check the ECB website or your lender’s correspondence for the current rate and your most recent monthly repayment notice.
Should I fix my tracker if interest rates are going to rise again?
If ECB rates are expected to rise, trackers become more expensive relative to fixed rates. However, predicting ECB rate movements is very difficult — experts have been repeatedly wrong in both directions. In general, if your tracker margin is below 1.0%, the historical value of the tracker makes keeping it worthwhile even through short periods of higher ECB rates.
Can I get a new tracker mortgage in Ireland?
No. Tracker mortgages are no longer offered to new customers by any Irish lender. The only way to have a tracker in 2026 is to have taken one out before the market withdrew them (approximately 2013) and to still be on that mortgage.
If I’m on a tracker and moving home, what happens?
Most tracker mortgages do not transfer to a new property — they are tied to the existing property. When you sell, the tracker is redeemed. You would need a new mortgage for the new property, which would be at current market rates (fixed or variable, no tracker available). This is one of the strongest reasons many tracker holders choose to hold onto their current home rather than move — the financial cost of losing the tracker can be very significant.
See also: Fixed vs Variable Rate Mortgages Ireland | Switching Your Mortgage in Ireland | Breaking a Fixed Rate Mortgage | Mortgage Rates Ireland 2026 | Mortgage Arrears in Ireland