fixed rate 2yrs or tracker, i don't know

gamston

hi all
been a very long time since i bought a house, so don't know about the deals
buying a house for my daughter,
best thing i can get is interest only deal on £90,000
been offered tracker deal £185 pm or fixed rate for 2yrs £235

reason i've gone for interest only is i'm only getting offered 15 yr mortagaes due to my age, and i can't afford £600+ payments pm

should i go for tracker or fixed rate

gnasher18us

With the current interest rate being so low I'd opt for a tracker mortgage unless you think the interest rate is going to go up by a few percent (personally, I doubt the rate will increase dramatically for a while although I'm not a financial advisor).

If you would prefer the knowledge of having an exact sum being spent every month (some people do to help their budgetting) then opt for the fixed rate.

Don't forgot to take out your policies to actually buy the house at the end of the term.

originalmiscellany

Tracker! And put as much as you can extra to overpay for your daughter/get her to do; Every time you overpay a little bit, it'll mean you're building a buffer up if/when interest rates increase.

gamston

its an interest only tracker, as i have another daughter just starting at uni, and a lad still at school, so not got enough money at pay back main sum