Tracker Mortgages

Reiki_Angel

Can anyone please tell me if these are worth having?

payless

depends on rate ( margin) they track by...

and whether you real;ly need security of a fixed rate

Reiki_Angel

Well i'm just a little worried that i've been advised that this would be the best option for me as my fixed rate is due to expire shortly even tho the rates rise and fall accordingly..

Wutang_2

if you have any worries and you know a fixed rate is affordable then tell the adviser you prefer fixed for the security of knowing it won't change.

Kavanne

Well, I have a tracker that tracks 0.75% above the base rate... Just had a letter saying 'your mortgage rate is no 3.75%'..... How can that not be good?! (Unless interest rates are 15%, then it's bad bad bad......)

Wutang_2

Kavanne wrote: »

Well, I have a tracker that tracks 0.75% above the base rate... Just had a letter saying 'your mortgage rate is no 3.75%'..... How can that not be good?! (Unless interest rates are 15%, then it's bad bad bad......)

for you - yes, for everybody else - not necessarily

Jonbvn

There is no easy answer to this question, so nobody knows where rates are headed.

Given the above, you have to decide which mortgage suits your circumstances. Answer some simple questions to decide:

1. Do you need the security of a fixed rate? If yes then FR is better.
2. Could you cope if rates increased dramatically? If no then FR is better.
3. Do you want to overpay? If yes tracker would be better.
4. What is the difference in rates between tracker and fixed rate?

ATM, you will find most FR mtg's at a much higher rate than trackers. Think of the higher cost as an insurance policy, if rates should increase.

Hurdler

I just got one in March and had one before for my flat when I quit my Endowment policy (boy am I glad about that now!)...

I want to be able to overpay and throw money (once I get some again) at it ...

But I don't know if trackers are back on the market yet and you will pay a hefty fee for it...

JF77

Like Payless says it really does depend on the margin. I have a +0.36% lifetime tracker which is great.

The problem arises when the base rate starts to increase again.
As a new customer I would feel uneasy opting for a tracker that was anything over +0.99% and, would prefer a fix if this was the case.

Trackers are great if you can get them when rates are at their peak and, margins are low which I believe was around Autum 2007.

Kez100

We've had a tracker for years and have at times (like now) been quids in and at other times been paying more than mst fixed rates(which we are happy with as ours gives us overpaying facility and lots of flexibility).

Your question really cannt be answered with a yes or a no as it so much depends on your circumstances.

Wutang_2

Kez100 wrote: »

We've had a tracker for years and have at times (like now) been quids in and at other times been paying more than mst fixed rates(which we are happy with as ours gives us overpaying facility and lots of flexibility).

Your question really cannt be answered with a yes or a no as it so much depends on your circumstances.

Kavanne would disagree with this - "How can that not be good?! ".

The answer to this is clearly, when rates go up