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Is it worth jumping onto a tracker?
IAMIAM
Posts: 1,424 Forumite
at 75% LTV. The rates at Barclays, Nationwide and HSBC are 1% or more cheaper than their equivalent fix's....are we going to see BOE rate rise monthly by 0.25% continually.....cue crystal ball....
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it would be prudent to assume that interest rates will trend upwards for the next few years, though not necessarily at a steady rate of 0,25%/month. They are still at historically very low values.0
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@iamiam No idea where interest rates will go, but imho if you don't expect to need to move for 5+ years, a long fix would be worth considering.IAMIAM said:at 75% LTV. The rates at Barclays, Nationwide and HSBC are 1% or more cheaper than their equivalent fix's....are we going to see BOE rate rise monthly by 0.25% continually.....cue crystal ball....
Otoh, if for whatever reason you don't want to be tied in for any more than 2 years, then a tracker may turn out to be similar/cheaper cost-wise over 2 years, considering the premium you'd have to pay for a 2 year fix. If the tracker is ERC-free then that also gives you extra flexibility.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.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
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Agreed. I am contemplating moving and think a tracker would be best as its cheaper. I have read todays article that the people with the biggest jump in mortgage payments will be people who fixed for two years in 2021 and renew in 2023. The rates have more than doubled, if not trebled by 2023....ME!!!0
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Discounted 2year trackers for me always although I wonder if I will regret with the way rates are going! 🤷♀️Initial mortgage bal £487.5k, current £258k, target £243,750(halfway!)
Mortgage start date first week of July 2019,
Mortgage term 23yrs(end of June 2042🙇🏽♀️),Target is to pay it off in 10years(by 2030🥳).MFW#10 (2022/23 mfw#34)(2021 mfw#47)(2020 mfw#136)
£12K in 2021 #54 (in 2020 #148)
MFiT-T6#27
To save £100K in 48months start 01/07/2020 Achieved 30/05/2023 👯♀️
Am a single mom of 4.Do not wait to buy a property, Buy a property and wait. 🤓0
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