Tracker Mortgage

greggp_2

Hi, Myself & my wife are currently looking at remortgaging as our existing deal is about to come to an end in August. We have been with the abbey on a 5-year fixed mortgage of 5.75 % originally borrowing £64,500. Although we knew what our monthly payments were for this mortgage which made it easier to budget, I know that there must be better deals out there which could save us money each month.

We are currently looking at a tracker mortgage with Alliance Leicester which follows the bank of england base rate and with current rates as they are we could save ourselves approx £25-30 per month.

What I am interested to know however is , are there any hints that the bank of england rates may increase or drop over the next few months or so?

TangentMan

Well no one can really say so many factors influence the decision.

The current tea leaves at the bottom of many economist's cups say that the rate will be held until the end of the year.

jamesd

Increases currentlly look more likely than decreases. Neither likely to be large or sudden, since a large increase could cause the housing market to collapse, while a decrease could further inflate an already inflated market.

I offer no guarantee of any sort that this post is in any way accurate. It's merely my current impression.

MortgageMamma

There are fixed rate mortgages with fee's and rates much lower than the tracker you are considering which IMO could save ou more than 30 a month. If you preferred the stability of a fixed last time why do you want to take a gamble with a tracker now? Do you know what a capped rate mortgage is? this could perhaps be more suitable to your attitude to risk

MM