Why are Trackers so high?

silverfoxuk

Gorgeous_George wrote: »

If your wife still works in the insurance industry, is she likely to find another job faily quickly? If not, the fix becomes even more desirable.

Personally, I don't see rates rising any time soon. will they hit 2% in the course of this Parliament? with Ant n Dec in No 10 and Gideon Osborne living next door it's anybody's guess. I just can't see it - in fact i think the next move may be downwards. WARNING - it's not often that I'm right.

In summary, I think both products are great. Security is found in a fixed rate. The gambler may stick with Nationwide's BMR.

GG

Wife works for big pensions/life firm. Could be difficult for her to get another similar paid job quickly, as similar financial co's are going through the same thing at moment.

silverfoxuk

Martin_T wrote: »

"We're in a similar position to another poster, but with a potential redundancy looming hence considering the security of a fix. In particular the First Direct 5yr 3.89% repayment..."

You can book the First direct fix and keep the rate for 6 months before completing. The fee is only £99. In the mean time, you can keep your existing rate.

An alternative would be to move to the HSBC lifetime tracker at 2.29% Which would save a little money on your current rate.

Did not know could 'reserve' the rate for 6 months will seriously consider that. Pretty good for a £99 outlay.

michaels

Don't forget fixed rate = redemption penalties if the worst did happen and you needed to sell up within 5 years.

Also as already mentioned for 2 year products, if you are close to LTV max (for example 65%) or have income doubts then the benefit of saving a small amount over 2 years may be outweighed by being sorced on to an svr when the deal ends and you no lnger qualify for the 65% LTV products if prices or income have fallen.