should i fix or not

2505sharps

Hi all just after a bit of advice, currently we are on a tracker interest only mortgage paying 0.5% per month. I believe i am one of the lucky ones who is on such a mortgage, paying £80 per month. My question is i'm sure the interest rates will rise soon. Should i stay as i am, or fix? We're currently paying £300 in overpayments to minimise interest paid. Any advice offered would be great, many thanks.

foreversummer

If you're sure interest rates will rise soon then a fixed will give you peace of mind.

You are doing absolutely the right thing now in overpaying. I am on a low rate tracker and overpaying and I have decided to remain there for the time-being, but I feel that interest rates may not rise for some time.

No-one can tell you what interest rates will be in 3 months, six months, a year, or three years so I guess all you can do is give it your best shot.

Foreversummer

Mrs_Bumble

I replied on your other thread?

If you switch to a fixed rate you are going to obtain somewhere in the region of the 5% mark.

On the tracker that you are on the bank base rate has to work its way back up to 5% to make you bring you anywhere near that. In my opinion (personal) that isn't going to happen overnight but will gradually come back to this level, in which case I suspect you will be where you started off?

Job to know where fixed rates will go to but will they go above the 5-6% mark?

In the meantime how much of an impact can you make on your mortgage balance with a 0.5% above BBR tracker rate?

Have you looked to see how much you are reducing your term by?

http://www.whatmortgage.co.uk/calcul...imortgage.html

Is there any reason in your personal circumstances that switching to a fixed rate would be a better option?

Anastasia

There is no evidence that interest rates will rise soon that I have seen. Economic recovery has a long way to go. I am in the same position as you. I won't be fixing until late next year.