Fix or Track? help!

keary25

Hello all,

Myself and partner have just had an offer accepted on a property for £122,500. We have 10% deposit and are ready to go.

We have been to see a mortgage advisor who has found a 2 year fixed with newcastle building society at 5.99% for 2 years followed by 5,99% standard variable rate.

However we have noticed a 2 year low start tracker with Cheltenham & Glos which has the following... 0.49% till 31 May 2011, followed by 5.99% tracker till the end of the 2 year term. This is then followed by 4.99% standard variable rate.

This offer seems to blow the Newcastle one out of the water and would like peoples opinion on this.

Thanks very much

GMS

The 5.99% Newcastle is fixed. You will know exactly what you are paying for the fixed term.

The C&G tracker is a shocking product. Very low rate to grab you in for a 6 month period after which it rises by 5%.

No adviser worth their salt would recommend this product. If rates rise by any amount you would be worse off than the fixed rate straight away.

Your adviser must be satisfied that you prefer a fixed rate so why would you be talking yourself into a tracker?