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Fixed v Variable

I am coming off a discounted flexible tracker shortly, it is currently 2.65%. The best my current lender A&L can offer me is a 3 year tracker at 3.99% - even though I have a current and accounts and a perfect payment history - its as if they don't want the business.

The Co-Op are offering a 3 years tracker at 2.39%. Althoguh I accept that the interest rates will rise over the next 3 years, I think that I would still be better off on this low tracker rather than a fixed at about 4%, as it will take a while for the rate to rise 1.6%, as I may hoping for no more than 0.25 to 0.5% rise per quarter (and hopefully less).

What do others think ?

Comments

  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Hi David, welcome to MSE.

    This has been discussed numerous times. If you do a search for something like 'fixed or variable' you should be able to find the threads.
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