Help with new Natwest switch offer

jonnypb

My 2.04% fixed ends in 6 months so am now eligible for a product switch with Natwest, but really unsure what to do.  I think I'm going to ignore the 5 year fixed deals which are 5.74%

Roughly £58k remaining and 13 years left on current deal which is £416 a month and LTV is about 30-35%

I've been offered these rates to switch.

2 year fixed deals

6.09% £529 a month
5.74% (£995 fee added to mortgage) £528 a month

2 year tracker

3.74% (1.49% above base rate) £460 a month at current BofE interest rate
3% (£995 fee added to mortgage and 0.75% above base rate) £447 a month at current BofE interest rate

5 year fixed

5.44% (£995 added to mortgage) £518 a month

I'm leaning towards the tracker one which tracks at 0.75% above the base rate.  

EDIT: Actually, thinking about it I can stay on my 2.04% fixed for the next 6 months, so by that time the tracker mortgage will probably not be as attractive especially if there are several interest rises between now and then.  Maybe the 2 year fixed is the way to go?

Thanks

dimbo61

It is widely expected that the BOE base rate will go up by 0.5% or 0.75% on the 3rd of November 

jonnypb

Yeah and I would expect within the next 6 months, which is when my fix ends, the BOE base rate could be up to 4.5%-5% which for the tracker mortgages wouldn't make them too far off the fixed one.

housebuyer143

jonnypb said:

Yeah and I would expect within the next 6 months, which is when my fix ends, the BOE base rate could be up to 4.5%-5% which for the tracker mortgages wouldn't make them too far off the fixed one.

But the appeal of a tracker is it can go down as well. I personally would take the tracker rather than fix at 6%. 
I recently turned down 4.5% in favour of my tracker as I am sceptical base rate will rise much above 4%. Flexibility is nice as well.

jonnypb

housebuyer143 said:

jonnypb said:

Yeah and I would expect within the next 6 months, which is when my fix ends, the BOE base rate could be up to 4.5%-5% which for the tracker mortgages wouldn't make them too far off the fixed one.

But the appeal of a tracker is it can go down as well. I personally would take the tracker rather than fix at 6%. 
I recently turned down 4.5% in favour of my tracker as I am sceptical base rate will rise much above 4%. Flexibility is nice as well.

Yeah after today's announcement of the interest rates maybe not peaking to what they expected then a 2 year tracker is looking more appealing than a 2 year 6.09% fixed.