Mortgage needed today

denwisey

Help neeeded in making a decision.
205k buying with 25% deposit.

Not sure whether to go with a fixed or a tracker and how long for.

I have been offered an Abbey 3 year tracker at 2.89% above BOE Base rate to give a current rate 3.39%.

kieran1979

Well if BOE rates raised to say 5% within the 3 years could you afford the payments of nearly 8% interest? What about if they go to 6%/7%?

That's what you need to think about.

Personally I'd be looking for a fixed rate of 5 years at less that 5%. It is somewhat a personal preference though.

Where have you found this deal? Have you spoken to a whole of market advisor?

Peelerfart

There is ,I think, little argument that rates can only go up, and so a tracker may not be the way to go unless you expect rates to be this low for a long time.

I'd probably agree with Keiran about the sub 5% fix. As for the time scale IMHO not less than 5 years.

luckyfool

Abbey offer a 4.89% 5 yr fixed rate at 75% which might be suitable. I would echo the above comments, that or something like it would be where I would be starting.

herbiesjp

Personally I would look at longer term fixed rates. Tracker rates are currently priced with high margins that means the only ones seeing the rewards will be the banks when rates increase.