Fixed or Tracker

Housebuyer958

Hi All - bit of advice (again!!) please.

My broker has advised that I stick with a tracker mortgage for two years as the fixed rate is 1.65% more.

With the Bank of England changing interest rates 0.25% at a time, that would mean that they would have to increase rates 7 times within 8 chances.

Am I right with this or not?

somethingcorporate

No, your logic is flawed.

They can increase any amount in the increments you mentioned above - not just 1 increment at a time.

Housebuyer958

I've been told that interests only go up and down 0.25% at a time.

I'm not saying your wrong but does anyone else have any hard facts?

Housebuyer958

Hi Just checked online

You are right they can go any rate but the Bank of England has only changed rates by more than 0.25% about 6 times since 1972

With the way of the world right now - I'll be suprised if they raise interest rates many times (if any) in the next two years

LillythePink

We have just taken out a mortgage and gone for a tracker as well.

Yes, the BoE can raise rates by any amount they want, but given the state of the economy I figured that they were unlikely to raise them substantially over the next few years or if they do it would be gradual.

So, on paper, a tracker is the best way to go - but just keep an eye on the rates and fix if you need to