Opinions Please - Track then Fix?

mclaren32

Im trying to work out what to do about the mortgage on my house purchase.

I had initially opted for a 3.79% 2 year fixed rate deal however I have the option of starting on a tracker rate and then after 3 months switching to a fix if I wish, there will be no fees associated with setting up the tracker or the subsequent fixed rate (i work for the lender).

In detail the options are as follows....

Stay on a 2 year fix ending 28/2/12 @ 3.79%

or assuming nothing changes in the next 5 months

Base rate + 2.24% tracker followed by a 2 year fix at 3.49% (yes that rate is correct )

So this is a win win assuming nothing changes but if the fixed rate increases by .5% in the next 5 months then the benefit is lost (or I take the risk of being on the tracker for longer and fix at some point later). One other thing to bare in mind is that assuming I do the track and switch the fixed rate would end later than 28/02/12 so the benefit of a fixed rate is had for longer.

MSE forums, your opinions please :j