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Can you Hedge to get effect of Fixed on a Tracker?

Hi,

I saw mentioned on a thread that there is a way to buy an instrument that gives the effect of a fixed rate mortgage whilst one is on a tracker. The thread mentioned that it was not perfect but didn't go into any details.

I'm currently on an excellent tracker deal and would like to hedge against future base rate increases. If there is a way that is cheaper than me jumping to a 4.5% 5 year fix then I'd like to consider it.

Does anyone know how this can work, and is it feasible for a normal sized mortgage?

Thanks!

Comments

  • foreversummer
    foreversummer Posts: 837 Forumite
    I agree with you and I was very interested in this. I had never heard of it before and do not understand how it works.

    Bump . . .

    Foreversummer
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