Fixed at 4.99 or tracker

handyman1970

Hi, ive a fixed rate of 4.99% for the term of 15 years for my mortgage of £52000 but need advice, would it be better to take a tracker at about 2.5% available and watch the market and change every few years or stick with what ive got, seems that the tracker at the moment is the much cheaper option. thanks

somethingcorporate

Just reread your post, a 15 year 4.99 fix sounds very competitive.

Personally, I would take it but am risk averse. I am sure over the lifetime of your mortgage you would be better off with this, going by historic averages.

dimbo61

Do you plan on staying in the property for the next 15 years ?
Do you have a steady income and can you afford to pay the mortgage if it went up to say 8/9/10% over the next 15 years?
So many things to take into account and we know very little information about you or your circumstances! Its a big decision and with a big ? ERC charge if you want to leave this deal early you might want to get professional advice and not opnions ( all we can give here)

handyman1970

Sorry, meant to add 15 year fixed at 4.99% and a 25k secured loan variable, currently 4.34%, thinking about adding both together onto tracker, sorry for missing info, im wanting to stay in property and owing 52k isnt too bad, but seems tracker more competitive these days as variable 25K will go up as rate goes up, mant thanks.

Thrugelmir

You have a choice.

(a) Take the fixed rate mortgage and know what your repayments are.

(b) Take the tracker , currently low in rate, and spend the "saving" as you wish. Until interest rates rise.

(c) Take the tracker, yet maintain your repayments at a higher level so potentially repay your mortgage in less than 15 years.

Paying interest is never cheap. Its dead money whatever the rate you pay. Repaying debt is equally as important as the rate charged. Lenders want people to borrow money over as long a period as they can. Thats how they make their profit.