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Remortgage - Tracker or Fixed? Confused
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Bombinogandy
Posts: 7 Forumite
Need some advise really, a little bit confused...
We have a mortgage with Barclays which we took in 2018 on fixed rates for 2 years. The current rate of interest is 1.94% fixed until end of April 2020.
We had a letter from Barclays in January 2020 stating we are eligible to apply for new rates from February 2020 onwards, so at the beginning of last month we fixed rates from May 2020 for two years at 1.53% with 85% LTV, £999 product fee.
Now that BoE have dropped base rate to 0.1%, we are thinking to switch to tracker deal for 2 years instead, which stands at 0.99% with 85% LTV. We understand tracker rates would go up when BoE raise base rate but considering situation with Coronavirus, personally I think it would take sometime for base rate to even go back to previous high of 0.75%. Is this a good option to switch to tracker rate in the current economic situation?
Work wise, me and my wife are both in IT sector and are not affected from working from home.
We have a mortgage with Barclays which we took in 2018 on fixed rates for 2 years. The current rate of interest is 1.94% fixed until end of April 2020.
We had a letter from Barclays in January 2020 stating we are eligible to apply for new rates from February 2020 onwards, so at the beginning of last month we fixed rates from May 2020 for two years at 1.53% with 85% LTV, £999 product fee.
Now that BoE have dropped base rate to 0.1%, we are thinking to switch to tracker deal for 2 years instead, which stands at 0.99% with 85% LTV. We understand tracker rates would go up when BoE raise base rate but considering situation with Coronavirus, personally I think it would take sometime for base rate to even go back to previous high of 0.75%. Is this a good option to switch to tracker rate in the current economic situation?
Work wise, me and my wife are both in IT sector and are not affected from working from home.
1
Comments
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In your situation, I’d probably look to do the tracker as I also can’t see the base rate going above 0.5 over the next 2 years. If it did, it would surely be the tail end of that period.
I’d of course compare the difference in monthly payment and over the full period, and be looking at the equity difference between the two. If there’s not a great deal in it, then peace of mind with the fixed could be valuable.1 -
Trackers are being pulled from the market. The offer may not last long.
Will your Company be impacted? Self protection is only one facet of the situation.1 -
We are saving nearly £100 a month on monthly installmentshotnoise said:I’d of course compare the difference in monthly payment and over the full period, and be looking at the equity difference between the two. If there’s not a great deal in it, then peace of mind with the fixed could be valuable.0 -
Thrugelmir said:Trackers are being pulled from the market. The offer may not last long.
Will your Company be impacted? Self protection is only one facet of the situation.
Barclays tracker offer is available.
Yes company is impacted, not as badly as tourism, airline or hospitality industry.
0
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