Remortgage: Fixed or Tracker!

samsgr

Currently on S Life 5.**svr. Want to remortage now as to avoid the masses, also feel the need to be more secure for the future.
But, tracker or fixed... our broker says tracker for 2 yrs as anything is better than 5.34% (i think with SLife).
But my head is telling me, fixed for 4/5 yrs.
We also have a buy to let investment that is empty at mo, (also neg equity) so stuck with that on svr.!
We can manage with what we are paying at mo but any decrease on monthly would be good - so tracker too risky I think?

aslawrie

I'm in exactly the same boat so any advice would be greatfully accepted

jonikarma

Although the tracker rates are lower than fixed rates, at some point the rates will begin creeping up and those on trackers will begin to feel the pinch. If your content on knowing exactly how much is going towards a mortgage each month, the fixed rate option for atleast 4 years makes sense.

itsakidsworld

If there are any products on a fixed rate at around 5% or under I would be looking to take them and fix them for 5-10 years.

The government and banks/building societies are try their damned best to talk us out of this recession in order to balance their own books and put them into profit ASAP. This WILL happen and we must be blessed with the fact that it is the Bank ff England that sets interest rates and not the government or we would be in a bigger pickle than we are now!

So my own personal advice and advice to everyone with a mortgage is get it fixed anywhere around 5% for as long as possible.

Gorgeous_George

Your adviser may well be seeking the opportunity to secure yet another application in 2 years. I'd change my adviser.

To avoid the masses you need to guess when the masses will return. 2 years? 3, 5 or 10 years? I don't know. Do you?

I'd expect rates to rise no earlier than 3 years (more likely 5+). So, you could gamble on rates remaining low and take a tracker or, if you prefer the safety of a fixed rate, take a 5 to 10 year fixed deal.

Longer deals have the added beneft of reducing the number of mortgage application hassles through life.

Could there be a middle ground for the indecisive amongst us? Part fixed and part tracker would make the choice easier for the borrower and provide some safety for the lender. (Sometimes I have great ideas). Perhaps they could add in the option of shifting the repayment/repaid element from one part to the other as circumstances change. (Crikey, two great ideas in one day).

GG

Pincher

Must say this is the ideal time for a capped mortgage,
except the lenders are not that stupid.:(

I'm sticking with my BOE+ , until the market frees up, and competition drives the margin down.

dimbo61

Leeds BS have a 5 year fix at 4.75% fee £999
At least one of your mortgages would be fixed ( BTL on SVR !)
See Skipton BS on increase on the SVR for there customers !!!!

Gorgeous_George

I'm not in the market for a new mortgage but if I was I'd fix as the tracker margins are too high at present and SVRs are too 'V'.

GG