Tracker with Nationwide should I switch

Keeping_Motivated

to a fixed rate today? Can't decide whether to risk it and stick with the tracker or switch to the fixed at 5.78% for 3 years? Martin reckons the fixed rates will go up after today so we should reserve now if we want a decent fixed rate.

Any opinions would be helpful

Thanks

JonnyBravo

This really is guessing time.

Only a month ago everyone was predicting fixed rates would come down in the short term as interest rates started to be cut.
The fragility of the banking system makes predicting what will happen next very uncertain.

My opinion?
If you're on a base rate tracker I'd wait a bit (prob a few months).... your tracker won't be going up even if fixed rates go up as a result of the LIBOR going up. When base rates go down as most people still think they will then your mortgage will go down. Eventually you'd hope the LIBOR will then move closer to the base rate and then you'll be able to fix at a better rate than today. Hopefully.
Spose it depends on your view of the "risk"

Welshlassie

3 banks have already increased their fixed rates fom today by as much as 0.25%, so no doubt many of the others will follow suit. I'd be inclined to fixed at that rate, at least you know where you are for the next 3 years with all this uncertainty, although it does depend on what your tracker is for.

How much risk are you willing to take and how much movement in the interest rates can you absorb??

Capricorn_One

You don't mention how much above base your tracker is. Mine's 0.5% + BOE. There's no way I'm switching!
If you take into account all the fees, not to mention the hassle I don't see the point.

I can't see base rates going up that much. If anything once inflation's under control they'll be bringing them down to stimulate the economy.