Help!! fixed or tracker remortgage? part int only and part repayment?

rubydoiwannabee

Hi, we have a large mortgage (£179000) currently with Abbey (Santander now) that is on fixed rate until June 2010.

The whole mortgage is currently INT only and has been for the last 19 months because we started to struggle with finances and decided to make the switch to keep us afloat!! Whilst also paying off debts etc.

However, yesterday I received a letter from Abbey saying that they can offer us a new mortgage now without exit fees, if we take a tracker, fixed or flexible mortgage with them.

I have gone through the figures with them today and we could continue paying approx what we are paying now but revert about 60K of the loan back to repayment which is a step in the right direction for us.

They have offered 3.99% fixed for two years, which was my preference but having read through some other posts I am now wondering whether I ought to consider the tracker??!!

Ultimately we need £100K on repayment, so we would have to aim to increase this at some point and maybe the tracker would be a way of doing that...

any advice gratefully received?

Thanks