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Fixed vs tracker?
HenBroon
Posts: 51 Forumite
I have 2 mortage options:
2 year fixed 3.79% with no arrangement fee
2 year tracker at 3.29% above base with no fee (so currently 3.79%)
I'm thinking that trackers only come into their own when there is a chance of base rate going down, but it's not likely to get much lower, is it? So it seems like fixing at a rate the same as what I'd currently get on a tracker would be the best option. These are both offers from the same bank. They're also offering 2 year fixed 3.39% but with a 995 arrangement fee, so I can see where they make their money on that one.
2 year fixed 3.79% with no arrangement fee
2 year tracker at 3.29% above base with no fee (so currently 3.79%)
I'm thinking that trackers only come into their own when there is a chance of base rate going down, but it's not likely to get much lower, is it? So it seems like fixing at a rate the same as what I'd currently get on a tracker would be the best option. These are both offers from the same bank. They're also offering 2 year fixed 3.39% but with a 995 arrangement fee, so I can see where they make their money on that one.
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