fixed rate or tracker

hermione08

i am just about to change from svr with halifax to either a 3/4 yr fixed rate of 4.3 or a tracker rate which is currently 2.54% above boe rate, does anyone have any thoughts on what is best, obviously the tracker rate is lower but not sure how long rates will stay this low, i know its a gamble but was just looking for a bit of advice, thanks

so

space_rider

2.54 above is a big increase when the rate starts to increase in my opinion. I think a tracker is a big enough gamble even when you are just paying a bit more than base rate.

dimbo61

Four year fix and overpay if you can
Only my opinion!

lynfs

agree with dimbo on that one, beat me to it!

Peelerfart

Fixed for me too ,the days of good tracker deals are over for a while methinks

RosieTiger

That has to be a purely personal decision for you - fixed offers the security if the rate goes up so it depends on your own finances.

StuartGMC

Fixed will tie you in and limit your options, but you know where you stand, and the key thing here is that if you fix and the rates go up, do try to overpay perhaps to the same "repayment" as you will be required to do when finishing the fix and back on SVR. Your budget should then accommodate this cost, but, in the meantime it has been contributing to overpayment.

If you opt for the tracker, how much change interest rate can you tolerate in your budget, 2, 4 6% increase? We started in 1994 at 8% mortgage rate, had quotes for repayments at 10% as required by law, but also requested repayment figures for 13% which was the typical mortgage for the previous 15-20yrs.

In the end, it is your decision but I hope the above help you to run a few "what-if" scenarios for your personal circumstances.

hermione08

thanks for all replies, think it will def be fixed.

Squish_21

Personally i'd go for a 4 or 5 year fix.