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Fixed or Tracker?
mamazaac
Posts: 659 Forumite
Am looking at two deals at the moment, one being tracker of 2.49% above base rate for 3 years, currently 2.99% and the other fixed until 09/11 at 3.39%. The question is, during the next two years are interest rates predicted to increase very much? I know it's not an exact science, but does anyone know what the general feeling is in the financial world please?
Many thanks in advance for any replies.
Many thanks in advance for any replies.
0
Comments
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IMHO if you only want a 2 year deal, which I wouldn't, then go for the fix. Interest rates would only have to go up 0.5% to make the fix better.
I think they will rise by more than that in two yearsSpace available for rent0 -
A tracker 2.49% above base is very poor. It looks OK when BOE IR is 0.5%. However, when they revert to their normal level (around 5%) a 7.49% mortgage would not look so appealing.
I would avoid 2-year fixes, since you end up paying too much in fees.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0
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