Tracker mortgage at 2.79% or a 5 year fixed at 3.39%?

mickyd67

What would you choose?

Suppose it all depends when you think the base-rate might increase by. A 0.75% rise would see the tracker being greater than that fixed rate.

Not 100% sure what to choose.

opinions4u

Assuming you're ok with fees and ERCs I'd fix.

(I've also assumed the tracker is for 5 years as well)

mickyd67

opinions4u wrote: »

Assuming you're ok with fees and ERCs I'd fix.

(I've also assumed the tracker is for 5 years as well)

There are no fees for either - it looks like a great deal either way (Britannia BS / Co-op are doing it)

I'd save when the base rate goes up by 0.7% - but it's a gamble as to how long that will be, and as such how much extra (around £40) a month I'll have spent before it does that.

Not sure what to do...