Woolwich Discount v Fixed

Taggie

My Woolwich Discount rate has come to an end and so they have sent me 3 options

2yr discount 4.99%

2yr fixed 4.99%

Tracker 4.99%

all at the same monthly repayment, so what would you do?

dwight-van-man

Depends where you think bank base rate is going to go over the next two years. The fixed rtae means you can basically forget about the mortgage for 24 months, and has peace of mind factor. You could gamble a bit with the tracker, ie if base rate drops so will your payments but equally, if base rate goes up, your payments will too. If there are several changes in both directions over the two years, the net effect may be that you end up havigmade no savings but had several months where you've had to frk out more for your mortgage.

Another thought - if you like the idea of a fixed rate and you are obviously not averse to staying with the same lender, why not look at a longer term fixed? There are five year deals on the go at similar rates to what you've been offered for two years.....

MR_G

Have you seen the Woolwich Life time tracker.
Its 0.19 above the Barclays Fixed Rate for life & no fees.

https://secure.barclays.co.uk/tp2/whatmortgage/

Taggie

Is a Tracker a good idea? Never done a Tracker before?

They have offered me a tracker at 4.99% (4.50%+0.49%) for term of mortgage.

free4440273

go for the fix. rates are going up, as well as inflation