Was set on a 3yr fixed rate but now considering tracker

smartmove07

I am a first time buyer and after research over the past few months was pretty set on going with a 3yr fixed rate deal. However, with all the talk of the BOE dropping interest rates over the next year (possibly multiple drops) I am wondering whether a 3yr tracker might actually be a better option. I will be borrowing about £193500 (10% LTV). Looking to buy in the next 1 - 2 months. Whats everyone elses opinion?

sarkin

IF you are stretching to the max then take the fixed rate. Merv did say there was a possibility of rates dropping,but looking at inflation I cant see how. What are you going to do if rates start rising the year on year after next year. with a mortgage that big you need to look further intot the future than next year all IMHO of course.

silvercar

first time buyer.... borrowing about £193500 (10% LTV).

House value £1,935,000 or is there a typo in there?

smartmove07

Oops, sorry. My mistake. 90% LTV

Spudwud

I'm one of those people who prefer to be certain about what I'm paying, rather than relying on the BOE to dictate it. If you're happy with the monthly payment on the fixed rate and you can easily afford it, then a tracker may be construed as an unneccesary risk.

People who took mortgages out on LIBOR rates 6+months ago must be kicking themselves at the moment if they didn't fix it, so I wouldn't be too caught up in the speculation regarding the BOE rate.