Fixed, Tracker or base rate. Which is best?

Bjoerndalen

Hi guys.

I am hoping someone can give me a bit of guidance. We have just come to the end of a five year fixed deal and are looking to get a new deal. We would like to go for a fixed rate however with the talk about the likelihood of interest rates falling, to be tied into a fixed rate now seems a bit of an unsound thing to do.
We are then left with a tracker or a base rate mortgage. We have been offered a tracker mortgage that is 0.88% above the bank of England base rate . This as a £299 fee attached to it. We are considering this as it means we can swap to a fixed further down the line and it gives interest rates the chance to drop.
The other choice is to go onto the lenders base rate which is around 0.8% more ontop on the tracker rate.
The problem is that because we are looking to fix it at a decent level and because we would have to add the fee to the loan would it pay to do this or would it be better to just drop onto the lenders base rate and wait for the right deal.

I hope that makes sense.

I look forward to your answers.

Thanks in advance.

nej

I just went for a tracker a few weeks ago - and that paid off nicely as the rates have dropped.

General consensus is the rates will continue to drop, and 0.88% above base with a £299 fee sounds pretty good to me.

a1psx

I know I am not answering your question, but I am in a similar sitution. I would like to know who your quote is with as it seems a good deal?