People here say FIX, my advisor says different?

foreversummer

The overriding sentiment on this board this time last year was for everyone to fix, fix, fix before rates go up up and away!

My adviser advised me to take a Tracker, something I am eternally grateful for. We also discussed the possibility of fixing at a later date to take advantage of any longer-term fixed rates that might appear in the due course of time.

I believe there are some excellent advisers out there (and there will be a minority that are bad just like any profession).

Foreversummer

Dan_1976

As long as he has a good systemin place that allows him to call his tracker clients with no ties when rates are on the up.

Its a little risky, he may go out of business or retire and you forget about it. Then again you can see if rates are on the rise.

cpdc1030

I can't understand the logic of going for a Variable rate of 3.15% in this day and age. You can fix for 2-3 years at almost the same rate or slightly higher.

I can't see rates going any lower than 0.5% - remember this is a historic low. If the economy returns to growth next 12-18 months, rates could be back at at least 3-4%, and you won't be able to find a good fixed deal.

foreversummer

cpdc1030 wrote: »

I can't understand the logic of going for a Variable rate of 3.15% in this day and age. You can fix for 2-3 years at almost the same rate or slightly higher.

I can't see rates going any lower than 0.5% - remember this is a historic low. If the economy returns to growth next 12-18 months, rates could be back at at least 3-4%, and you won't be able to find a good fixed deal.

But the problem is that fixed rates are inflexible and come to end and on a specific date. If you want to get out earlier you usually have very high early repayment charges. In 2 - 3 years time interest rates will certainly be higher and you might find that your fixed rates comes to an end at just the wrong time.

Unfortunately unless the OP gives us the information he has given his adviser we cannot judge the quality of the adviser's recommendation.

Peelerfart

Recommending a fixed mortgage is going to be a safe thing to do. Supporters of fixed deals like to know what they are going to pay so they can sleep in their beds soundly. It doesn't make them wrong or right,it makes them safe.

I'm sure Foreversummmer above is pleased with a tracker as indeed I am with mine.

Perhaps the advisor the OP refers to should be applauded , or is that not the done thing to suggest the advisor may be correct ?.

I think we need more information from the OP before we pre judge the advice