Fixed or tracker?

Nonie_3

Help me!
I am in the process of moving to Nationwide onto a 2yr tracker, but they've just announced a new fixed rate of 4.95%. The trouble is, I have to pay an additional £349 fee. Plus I'm hearing conflicting advice on whether rates are going to go up & up, stabilise, or come down. What should I do? ???

payless

no absolute answer, but bear in mind the fixed is already higher than the variable and the extra fee-
how much would it need to go up for you to be actaully saving anything.

ie - on £100K interest only
auuming old 4.79% var rate against new 4.95% rate

rates could go up another 0.5% ( on average over term of 2 yr product) and you will still be better off on variable
this difference will vary depending on loan size)

- might have been a different story originally ( ie no extra fee)-

should look at what you need - and  if you really "needed" a fixed rate" I think you should have taken it originally anyway- even at the old higher rates