Stuck in a fixed rate, any way to get out of it?

missk_ensington

Yeah but like you say everyone is rushing out to get trackers at the mo, people are enjoying ridiculously low mortgage repayments, my ex is now paying £200 a month as opposed to £600 a couple of years back. So people are getting used to this extra disposable income - if these £200 a month mortgage repayments suddenly shoot up to £400 or £600 or £800 in a year or two, its going to absolutely cripple people and surely the country will be back on its a*se again?

My point is, if in a year or so the economy is beginning to repair, is the Gov likely to let all the hard work come undone by raising interest rates?

koexelek

mystic_trev wrote: »

Lots of people are now thinking it's great time to get a Tracker - meaning it probably isn't! If I was looking for a mortgage now I'd be looking for the best Fixed rate, and fix it for either 5 or 10 years. In a couple of years time Interest rates will probably be a great deal higher than they are at the moment. At least with a long term fix, you can budget for the future.

All (of course) IMVHO.

I tend to agree. All the great trackers have gone, meaning that if you have not already got one, you have missed the boat

mystic_trev

missk_ensington wrote: »

My point is, if in a year or so the economy is beginning to repair, is the Gov likely to let all the hard work come undone by raising interest rates?

The problem is that there's likely to be a change of Government in just over a year. They can then blame everything on Gordo and sit back as Interest rates go up again!

RabbitMad

I'm in a similar situation with Nationwide. 5.75% fixed until July 2011 (was a 3 year fixed deal) with a £1700 ERC.

I did some sums last night and worked out that it wasn't worth it for me (Switching to nationwide 4.18% tracker fixed for 3 years with £299 fee) as I'd only save £500 over the term as I also have £50k in savings that I would use to reduce the mortgage.

I think OP that you should look into whether it would be worth switching and paying the penalty but unfortunately with out more details (Like amount owed etc and LTV) nobody can realy give you any reliable indications.

Peelerfart

I don't think trackers are the way to go. Interest rates have to go up, it's just a question of when.
The real question,in my opinion, is when are fixed rates at their lowest ?

That's what we need the crystal ball for ...