Fixed or tracker?

anfield_wannabee

My current tracker deal with Halifax ends on Mar 1st. The best deal they can offer me is a 3-yr tracker at 2.34% above BofE. I've gone to a broker who can offer me a 2-yr 3.34% fixed for 2 years from Alliance and Leicester; fees work out about the same for both. So percentage-wise, both deals are equal - but should I go for fixed? i.e does anyone think BofE will drop to 0.5% or even zero and keep it there for a while, and even if they do, how likely is it that they will go up again in the next 2 years? Please help - I need to make a decision TODAY! :eek:

_Andy_

Not sure why you have to make a decision today...

Anyway it's a personal choice - i.e. I've no idea if your budget is tight/ if you can afford it still if the payments rise.

Charlton_King

I would guess that it's a good idea to go onto SVR for a while and see what happens to offers over the next couple of months.

The market's in a turmoil still. My own guess is that rates for deals of all kinds will continue to fall and it is possible you could save yourself megabucks by waiting and observing.

anfield_wannabee

Andy, the only reason is that if these are good deals then I don't want to umm and ahh about them for a day or two and risk missing the boat. I probably could afford a price increase, I just don't want to!

lukekelly_2

In that case don't make a decision today. Do it slowly and carefully. It's a lot of money!

Radiantsoul

I suspect that in the time period interest rates will fall and then rise again. Probably the market thinks the same thing and that is why the two rates are so similiar.

ashington10

For what it's worth I think we'll have rates at 0.5% until summer next year. Thereafter a slow increase.

dimbo61

Why are you looking at 2 year deals ?
Paying off your mortgage in 2 years NO !
Winning the lottery !!
Think long term and look for security as its your home
Overpay if you can and work hard at reducing your debt.