Fixed rate finished, reverts to tracker, or should i refix?

petejw

I was afirst time buyer in Apr 07. Best deal i could get at the time was 6.19%, thankfully this is just finished. I revert straight to a tracker currently 1.45%, or i have the option to fix for 2 yrs at 3.49%.

I was made redundant wen company closed at end of 2009, and am still looking for work. The new repayments at 1.5% is very appealing - but it seems a risk if/when rates rise, i'll basically be £100 a month worse of if I fix. I dont know what to do - help.

undetterred

Ride it out on the tracker,if/when rates rise review the situation.

petejw

That is the most tempting thing to do, but as i am currently out of work, i will obviously struggle to negotiate a good fixed rate in the future, especially at a LTV of around 85%

TrickyDicky

if you're currently out of work - I think you will struggle to remortgage at all. Surely the tracker rate would be much better for you until you find a job? Rates will rise a max of 0.25% a month really. Would take nearly 2 years for your tracker rate to reach the quote you got - so get looking for a job!