Discount vs Tracker

I usually suggest a tracker over a discount. Reason being if base were to go up by 0.25% the tracker would have to do the same, but with the discount the lender could increase by .35% for example. They could also increase the rate for any reason they like, not just due to any change in base.

With a tracker you know where you are, with a discount you leave yourself wide open.

As minimike2 suggests... trackers are probably the best bet at the moment, you know where you stand with them... banks can do what they like with a discount rate...

Gorgeous_George wrote: »

I cannot see base rate rising to more than 6.5% over the next ten years GG

:question: Curious as to what this thinking is based around GG.

That's not to say that I'm disagreeing, or willing to stick my neck out that far with you just yet...I'm just pondering this and wondering if your thoughts are politically or economically based?
PM me if you prefer...

Its a difficult one, the I feel the banks are worried about their own housekeeping, and rightly so, with the problems securing funds...this is why the fixed rate deals are going up and up everyday as they get nervous and withdraw them, as funds secured run out with the take up of the offers...as a lot of nervy types who need a mort are now scrambling to get the lowest fixes they can...and even the BR trackers are now offered at a lot over what they were earlier this year....so do we take this a further warning? but is the big meltdown over egged by the multi hype frenzy thats going on...

Spose the choice depends how brave you are....or others will argue, how stoopid! (to be brave?)

Fixed you could end up paying more, if this bothers you enuf then Tracker may be best with the thought that you gave it the benefit of the doubt? but what price the doubt?

A 1% BR increase would make a significant difference to your monthly payment, unless you have a low outstanding capital amount - but then will it jump up that harshly or will the base rate be nudged up in fractions???? I think we are all agreed it is only going up for the foreseeable....

Altho the UK is affected in a big way now from outside influences, oil, bank lending etc I do still think the current Govt. will be trying/hoping to keep the base rate down..if possible, as they are with juggling the inflation figs at the mo, what a laugh! they are not fooling anyone.
We know there will a general election within the next 2 years, and if the Cons get in, they would also need to quickly address the inflation issue, (depending when the election is and how the dire the situation is at that point)and so will also be doing their best to ease the situation and keep the BR low to please the electorate....I'm wondering if they will make manifesto promises on this before the election..or whether they won't be able to stick their necks out either...Hmmmmm :think:

I have not had time to read up on this, this is purely off the top of my head...
Interesting to hear anymore thoughts, espesh from anyone better informed that has read up and are keeping up!

GG - anyone? Maybe we need a new thread on this?

I'll try and catch the Daily Politics show (hoping they are looking at more than just Mugabe) at 11.30, oh I do miss the Working Lunch quick fix of info when the tennis is on...