Fixed rate, variable or tracker

Jeanna1711

I coming to the end of my fixed rate deal with my curent provider, they want to charge me nearly £1000 to go into a new deal. a Remortgage to another new deal will cost me £200 plus £1000 added to my mortgage. The variable rate is better than my existing fixed and so is the tracker but I'm really confused as to what is the best route for me. I would like the stability of something fixed but can't afford the costs involved. Any advice greatly appreciaited.

Thanks

smcqis

There are so many of these threads its like going around in circles, there is no correct answer to this question, it depends on one's opinion and one's own circumstances, your LTV, rate offered etc. Do a search fixed v tracker and you will get loads.

The same conclusion comes everytime, if you cant afford rates to rise, go fixed if you can afford and want to gamble go tracker. Variable is just uncertainty but allows you to make a move when you want. The general consenus is that any 5 yr fixed deal under 5% is pretty decent

Offerman771

Hi Jeanna,

I posted this thread myself last week asking a similiar question and I got a great answer from 'thrugelmir'. Its on the third page, have a read....

But in short you need to weigh up your attitude to risk...interest rates will rise, and they will rise soon. But I don't believe by much this year. All the leading financial think-tanks seem to predict a few token rises of .25% and maybe .50% before Christmas. In my case this won't bring my new mortgage rate to anything close to my old fixed rate so I intend to do some serious overpayments with a view to refixing next year.

The risk however is its very unlikely this time next year the fixed rates will be as good, but if you have managed to smash off some equity by then then it doesnt matter so much because you will owe less anywho.

I'd hold fire until this Thursday when the BoE meet for their monthly meeting. We will know then if they plan a rate rise next month.....