SVR's rising? BoE tracker or cheaper 2 yr fix with offset? (coventry building soc)

jimi_selvis

Hi,
Tomorrow Coventry withdraw their 2.45% 2 yr tracker with offset. I have to make a quick decision, to go with that or get a lifetime tracker for a bit more e.g. first direct has one (straight variable, not an offset) at 2.79% above BoE base rates.
I feel that the base rate is going to remain the same for the next few years (some are calling for it to drop even lower) so I'm pretty much decided on a tracker. It seems the banks will need to recapitalise soon and I worry that SVRs and all mortgages will become more expensive in the near future.
So my question is: should I pay a bit more for a lifetime tracker on the off chance mortgage rates go up independantly of the BoE base rates? or should get the cheaper 2 yr discount tracker and risk a more expensive remortgage in 2014??
Advise gratefully recieved.
Jimi

dimbo61

Do you really want to remortgage every 2 years?
what happens if rates are much higher in 2 years or lenders have pushed up there SVR,s to 5/6/7% and you are then on the SVR?First direct are offering some of the best BOE trackers on the market.

jimi_selvis

Well yes, exactly. It's the mortgage I've been advised to go for by a broker and 2.45 above base is a fairly good rate on it's own but seems esp. attractive with the offset facility.
I have seen a straight lifetime tracker from Britannia for 2.09 above base though.