Fixed Rate vs Tracker

tee10

Hi

My fixed rate mortgage with Halifax is due to come to an end in december. I have been to see my mortgage advisor who is saying that i may be better going onto a tracker rate now that interest rates are going down. It seems i have a limited choice of mortgages since the contract on my current job is due to finish in feb 09, although i am confident in finding further work. I am wondering whether i should just go onto the variable rate until i have another job, or should i go onto a tracker or another fixed rate. Argh! Help!

dimbo61

If you want to stay with halifax because of the current job/ contract ending feb 09 situation then really you have 3 choices ( unless you want to pay SVR ! )
1 5 year tracker at BOE + 1.64% fee £999 on 75% LTV
2 5 year fix at 5.89% fee £999 on 75% LTV
3 5 year fix at 6.04% fee £699 on 75% LTV
The size of your mortgage and LTV will decide which is best for you.
In such difficult financial times I would go for a long term fix and rates under 6% are still good value for money If you look at historical mortgage rates over the last 40 years.
I have been on a fixed deal for the last 3 years with 2 to go and I am very happy with my decision.
This is only my opnion and you need to seek professional advice.
Speak to the Halifax if you are happy to stay with them.

Peelerfart

Hi Tee10,

There is a very good article in the Mortgages/Houses section of the main site. That should clear it up for you to decide between Fix or Tracker.

Personally ,track, but that is just me, dimbo61 (great name) has decided fixing is best.

Please read the article and make a more informed choice