Tracker Mortgage advise please

kittykat500

I am into the second year of a tracker mortgage with the Woolwich/Barclays. The one year fixed period is up and now the rate is variable running at 0.39% above base rate of 5.00%. I now have the option to fix it for an indefinite period of time. What should I do? I am nervous that the base rate will increase significantly with all the financial problems in the world at the moment so am inclined to fix. I know precious little about mortgages and banking and will speak to my own mortgage broker over the next few days but I also value your opinions on this board, so over to you!

Thanks

Gorgeous_George

Fixing now may not be the wisest option. I think base rates will fall significantly over the next 6 months - perhaps down to 3.5% again. There may be a better time to fix than just now.

Of course, if you want the security of knowing your repayments for a fixed period of time, you may choose to fix. Whatever happens, you will have done the right thing for your own circumstances.

I just cannot see Base Rates rising dramatically - at least until after the next election. The Tories like high interest rates.

GG