Fixed Or Tracker Need To Make Quick Decision

rosie78_2

hi my current 2 year fixed runs out at the end of the month i was set on staying with c&g for a 2 year fixed at 6.08% with no fee this was best around at the time i chose but have not sent confirmation back as was waiting to see what rates did. Now they have dropped i am confused!! Should I take a tracker???? Advise please.

lju

Personally I would go with a tracker at the moment.

spuds_2

General consensus in the Times seems to be to go for a tracker, but act quickly as many offers are being withdrawn. With recession looming, interest rates are unlikely to go up, and may even go down. I think I am right in saying that trackers follow the BoE base rate - you will benefit when there is a cut, whereas banks may not pass on the rate cut to those on the SVR.

However, if you are feeling a bit stretched or insecure, you may feel a fixed rate gives you security for a while. Also, some of these mortgages have huge fees - you need to add that in to the calcs.

dimbo61

What about C&G 5 year fix at 5.69% or is that a mistake on there website
airmiles mortgage ( IF its for real bite there hand off even with a £999 fee )
You know where you are and how much you will pay for next 5 years

Heyman_2

My vote is for a BofE Tracker if you can get one with a decent rate, for the reasons already stated. If your LTV is good enough, bear in mind there usually isn't a tie-in with a Tracker, so you could always move to a Fixed Rate a few months down the line if you wanted to.

Some banks DO tie you in for 12 months though, so worth checking if you investigate.

First Direct and HSBC have some great Tracker deals on at the moment.

grogdog

hi rosie,
it will depend on your own attitude and circumstances do you want to kn ow what you are going to pay for a set period? if yes fixed if you are happy to have a bit of risk in that your payments may go down or up then repayment. alot will depend on your mortgage amount this will also affect if you are better paying c&g a fee to get a cheaper deal.

Beckymarshall07

Get a tracker - interests rates are going to go down and by some margin if you listen to what its says in the news. Besides, you can always fix again a few months down the line as most trackers dont have a tie in deal. They also have much cheaper arrangement deals.