tracker or fixed?

fluffykittens

Probably should have put this on my previous thread, sorry guys.

What exactly is the difference between a fixed and a base rate tracker.

Im currently with A&L and the tracker is at 6.49% where as the fixed is 7.19%

Out of the two what would be the better?

Cheers again

UK007BullDog

Tracker can go up as well as down. You are gambling and hoping that the rates would go down. You might worry every month if the Bank of England will raise the rates. If they do you have to pay more for your mortgage the next month.

Fixed means the rate is fixed for the duration of the deal you chose. Which means you know exactly what your monthly payment will be every month until the deal ends. You might lose out if the rates drop a lot but currently I cannot see it happening and in your current situation you should opt for a fixed rate as you are struggling to meet all of your obligations.