fixed or tracker?

matthew2456

110 000 mortgage

3yr fixed @ 6.39% -> £576pm interest only £1000fee
2yr tracker @ 5.79 -> £536pm interest only £600fee

Which would be recommended? The bank are suggesting tracker.

Gorgeous_George

I would recommend neither. The terms are too short.

I prefer a lifetime tracker like the ones offered by Britannia.



GG

epz_2

whats your ltv, woolwich are doing a 0.17% lifetime tracker with no application fee would be cheaper in the short term sice £600 over 2 year against 110000k is the equivlent of 0.27% on top of the rate if my maths is ok.

the decision of fix vs variable is on of risk and afordability, if rates jump too 7% can you still pay your bills, if not then dont take the chance, if so and you think rates will be on average lower over the next 2 years then why not.

tomstickland

I'd be going for a tracker if I was switching mortgage now. I've got another year until that happens though.

matthew2456

tomstickland wrote: »

I'd be going for a tracker if I was switching mortgage now. I've got another year until that happens though.

Care to explain why?

tomstickland

Well, when I went fixed last year I was of the opinion that rates were as low as they could go. I'm now of the opinion that rates are pretty high and they will not increase much more. That's just my opinion and I could be very wrong. That's the 4 option gamble you have (fix and they rise or fall, variaable and they rise or fall).