Fixed or tracker?

ivanad

me and my husband are first time buyers and we have already found the house we want to buy. at the moment we are going through the dilema if we go for tracker or fixed mortgage and how long for? our mortgage broker advised to go for tracker 2 years but we are not sure as we are scared that the rates will go sky high (broker said they cant go higher than 0.25% a year) should we go for tracker of fixed mortgage???

fattony

broker said they cant go higher than 0.25% a year

Never heard of that and I doubt thats true is it?

ivanad

we are not sure if its true or not... thats why we want to go for fixed rate

VIGILANT22

If you're worried about increased payments..you should go for a fixed..

Quote fattony: broker said they cant go higher than 0.25% a year

Change yr broker or ask for that in writing........

flammable999

ivanad wrote: »

me and my husband are first time buyers and we have already found the house we want to buy. at the moment we are going through the dilema if we go for tracker or fixed mortgage and how long for? our mortgage broker advised to go for tracker 2 years but we are not sure as we are scared that the rates will go sky high (broker said they cant go higher than 0.25% a year) should we go for tracker of fixed mortgage???

rates cant ho higher than o.25% a year? LOL

Definitely get yourself a new broker. If that was the case, millions of people on SVR's (including me) would be laughing their heads off and think what the big fuss this recession is all about! By his reckoning, it would take 16-18 years from now to reach the 5% rate that was in operation in Oct 2008!

ivanad

he gave us option for tracker 4,6% and he said that it shouldn't go higher than 0.25% a year so in 2 years time it shouldn't go higher than 0.50% which would be 5,1%

flammable999

ivanad wrote: »

he gave us option for tracker 4,6% and he said that it shouldn't go higher than 0.25% a year so in 2 years time it shouldn't go higher than 0.50% which would be 5,1%

He must have a crystal ball then. No one has a clue what the rates will be like in 2 years. They went down fast enough, theres nothing to stop them going back up fast either. Also with the impending election, theres no telling what the rates will be like in 2 years

VIGILANT22

"shouldn't go" v " won't go".........you decide.............

_Andy_

Your broker is a muppet.

kaych

http://www.thisismoney.co.uk/interest-rates but of course still a prediction, but I think it is an interesting read.