would a new tracker be advisable at present?

Thrugelmir

virgin_moneysaver wrote: »

When you look at it, the base rate would only have to go to 1.5% for the fixed rate to be the better deal - would it reach that in the next 2 years? who knows

also if we do nothing we go on 4% at end of next month & it don't cost us anything - but again if the SVR moves upwards then the fixed rate would have been the better option

£199 arrangement fee - is that pretty reasonable these days - to me when its the same lender I don't see why we should pay

BOE base isn't going lower thats a certainty.

Don't they offer some longer term deals?

virgin_moneysaver

Thrugelmir wrote: »

BOE base isn't going lower thats a certainty.

Don't they offer some longer term deals?

in just over the 2 years our endowment matures & we'll be able to pay a lump off the mortgage which is why I only want a 2 yr at mo

Thrugelmir

virgin_moneysaver wrote: »

in just over the 2 years our endowment matures & we'll be able to pay a lump off the mortgage which is why I only want a 2 yr at mo

Then I'd taked the fixed rate for peace of mind.

Joe_Bloggs

That £199 fee is a bargain compared to many other. It is only 27p a day. Many lenders would want £499 or £999.

The trouble with a tracker mortgage is the Bank of England. They have only got interest rates to allegedly control inflation. Fixed Mortgage Rates, Loan rates and credit card rates no longer bear any relationship to the Bank of England rate of 0.5%. If 90% of borrowers took out fixed rates then the Bank of England would have to increase their base rate by a great deal to curb consumer spending as a whole.
J_B.

Thrugelmir

Joe_Bloggs wrote: »

The trouble with a tracker mortgage is the Bank of England. They have only got interest rates to allegedly control inflation. Fixed Mortgage Rates, Loan rates and credit card rates no longer bear any relationship to the Bank of England rate of 0.5%. If 90% of borrowers took out fixed rates then the Bank of England would have to increase their base rate by a great deal to curb consumer spending as a whole.
J_B.

The banks offer fixed rate mortgages on the back of fixed term deposits. Has no relationship to BOE base rates.

A level of 90% of borrowers would never be able to obtain a fixed rate mortgage at a competitive rate.