All Weather Tracker or Fixed Rate?

nemoes

Hi all,

My current fixed rate mortagage with the Halifax ends in March and I am looking at my options. The Halifax is offering a 5 year fixed rate at 4.84%, alternatively Cheltenham and Gloucester is offering an 'All Weather' Tracker at 2.39% above the base rate. I quite like the idea of being able to lock back into a fixed rate if and when rates start to go up again.

Given the uncertainty around at the moment I'm not sure whether to go for the Tracker with C&G or wait and see if rates drop further (Hopefully any cut will be passed on) and then lock into the best fixed rate deal?

Nemoes.

koexelek

If you want to take the cautious approach , go for the fixed rate..... then stop following what is happening to interest rates

However, if you are prepared to take a bit more of a gamble, go for the tracker.

My advice to clients as regards fixed/tracker really comes down to affordability.
If you can just about afford the mortgage, fix it, as if you don't, and rates do go up, you could soon struggle.
However, if you can afford your repayments easily, you might be able to take more of a gamble and go for a tracker.

Each to their own though. There is no right or wrong answer

herbiesjp

And don't forget the arrangement fee to move onto the new fixed rate if you want to do so.

beecher

Remember you have the option of staying on the SVR (currently 4.5%) and jumping on a fixed rate from there. It saves arrangment fees which, depending on the size of your mortgage, might be worth thinking about.