Fixed, tracker, discount: what's my best bet?

sweepea997

I have 8 1/2 years left on my mortgage, I'm looking at remortgaging and I've been offered a choice between:

Fixed: 5 years @ 5.99% - £499 fee
Tracker: BoE base rate + 0.85% - £299 fee
Discount: 3 years 1.85% off current standard variable rate - no fee

I'm tempted by the predictability of the fixed rate, but I keep hearing rumours that interest rates are likely to fall. Anyone have any thoughts on my best option?

gt-cri

sweepea997 wrote: »

I have 8 1/2 years left on my mortgage, I'm looking at remortgaging and I've been offered a choice between:

Fixed: 5 years @ 5.99% - £499 fee
Tracker: BoE base rate + 0.85% - £299 fee
Discount: 3 years 1.85% off current standard variable rate - no fee

I'm tempted by the predictability of the fixed rate, but I keep hearing rumours that interest rates are likely to fall. Anyone have any thoughts on my best option?

Try London & Country, as mentioned by :money: for the mortgage guide. I've got 8 years left- just processing a Woolwich tracker (0.17% above BoE base-rate, for the term.) No fees, free valuation & legals. Of course, your circumstances may be different but the "no-fee" deals are still around. The tracker element at least allows you to win, should rates fall but remember, you will lose-out compared to a fixed rate, should they rise!

La-Banque

This really depends on how you prefer to organise your finances.
I usually take a risk on a 2 or 3 year discount or tracker mortgage, based upon the assumption that the discounted rate is usually sufficiently low enough to still be worthwhile, even if the interest rates do actually rise a couple of times in the 2 or 3 year period.

There is a bit of talk suggesting that the rates may fall however there is also talk suggesting that the market may remain stable at current rates for a while. I'm sure that if you look hard enough you'll find articles that suggest the rates will rise in the short term!

I've just applied for a 2 year discounted rate with A&L as I've gone off the rationale that I have applied for several years. But that's me... I suppose it really depends which way you believe the market will go.

Why not try a shorter term, eg 2 year discount or tracker. Or possible a tracker with no tie-in period (eg A&L two year discount, 6.09%. No tie in, £149 fee plus valuation fee).