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Tracker or fix?
Options
Macc
Posts: 212 Forumite
I totally understand no-one can predict the future but just looking for peoples viewpoints.
My deal ends soon, so need to re-mortgage so I've got to make the decision one way or another anyway, if it were you right now, would you go for a fix or a tracker?
I could afford an increase if rates went up so it's not a life or death decision but be interested to hear the thoughts of folk that know more about this sort of thing than I do.
My deal ends soon, so need to re-mortgage so I've got to make the decision one way or another anyway, if it were you right now, would you go for a fix or a tracker?
I could afford an increase if rates went up so it's not a life or death decision but be interested to hear the thoughts of folk that know more about this sort of thing than I do.
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Comments
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2 yr tracker. IMO base rate will remain low due to economic uncertainty. If you have available funds to mitigate the unfortunate rate rise risk then definitely tracker. I would only fix if I couldn't mitigate that risk.You should pay attention to the needs of the moment - otherwise there is no future. But to ignore the future is foolish - living solely for the moment leaves nothing for when the next moment arrives.0
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I wouldn't influence you one way or the other but if you are planning to stay in your property for the next 5 years or so and can't be bothered with the hassle of changing deals every 2 year it could be worth a look at a long term product - the fees for switching products can add up over the years slowing down the reduction of your capital balance therefore if securing a good rate over the long term is important to you there are good fixed rates available.
A good broker can help you work out the best option and give you the right figures.I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
2 year tracker0
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Depends how big your mortgage is, I've looked at 2 year products but the fees are so high for the best rates it's just not worth the risk for me. I've got 130k and can get 5 year fix for 1.99% with no fee (the Coventry) or 0.99% (hsbs)with a £1495 fee I'm over 50% ltv, saving just not worth the hassle. The tracker rates are so close to decent long term fix, with imported inflation a real possibility. I'm not sure 5 or 7 year fixes will fall below 2% for long.0
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2 year, best fee free deal you can find imo.0
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Smart: Decide if you are prepared to take a risk on potential future rate rises and if the Tracker rate is sufficiently lower to make it a good risk/benefit as against a fixed rate
Not smart: Predict the future of interest rates based on what you read in the Money MailI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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