What would you do? Fixed or variable?

DannyboyMidlands

Considering the BofE sat on their hands whilst inflation climbed to 6%, why with inflation now falling back and the economy sliding back into recession, why would they start to raise rates in 2 years time? I don't think that base rate will rise much for 5-10 years.

Even if it does a 5 year fix is no defence. You'll still have 20 years to deal with.

liubeliu

Beware that it is based on Barclays Bank Base rate and not BoE Base Rate, from woolwich/barclays website

Barclays Bank Base Rate
Barclays Bank Base Rate typically follows the Bank of England Bank Rate but it is not guaranteed to do so. The Bank of England Bank Rate can go up or down and is announced by the Bank of England's Monetary Policy Committee every month

System

have you considered switching to another lender? If you have 75% LTV there are better 5 year fixed rates out there.

Im remortgaging to a 5 year offset fix with YBS for 3.59% (non-offset was 3.49%). For me this was a no brainer as have savings to offset, am starting a family (drop in income and increased outgoings to come!) and dont plan to move. However, if you plan to move in the next 3-5yrs this could tie you down a bit.

Although dont know all your circumstances (e.g. income, dependents, savings etc), I would probably lean more to the lifetime tracker based on the info you have provided, especially if you could afford for rates to go up a bit. It is also more flexible and will mean that you wont have an ERC round your neck.

Xbigman

I'm in the same position as the OP. My Woolwhich (Barclays) fix is ending so I'll be on a +1.99 lifetime tracker (so 2.49).

I've had my letter today offering 2.83% fixed for 2 years, which is very attractive. What the op didn't mention was the new follow on tracker rate on this deal would be +3.39. Ouch. It looks to me like Barclays were too generous with their lifetime tracker deals a few years ago and are offering an excellent headline rate to get people to sign up, then there's a sting in the tale in 2 years time.
I'm inclined to just sit on the follow on rate I already have. A +1.99 lifetime tracker, no fees and no tie ins looks pretty good right now.




X

Thrugelmir

payvpac wrote: »

Im remortgaging to a 5 year offset fix with YBS for 3.59% (non-offset was 3.49%). For me this was a no brainer as have savings to offset, am starting a family (drop in income and increased outgoings to come!) and dont plan to move. However, if you plan to move in the next 3-5yrs this could tie you down a bit.

The sting in the tail is YBS SVR which even now is currently 4.99%.

System

Thrugelmir wrote: »

The sting in the tail is YBS SVR which even now is currently 4.99%.

Indeed I totally agree.

My thoughts were that in 5 years their SVR may not move as much as other lenders who are at present cheaper.

Failing that I will switch to an existing customer product or remortgage to another lender to get the best deal I can.