With 2 year tracker rates falling...is a 5 year tracker worth it?

IAMIAM

3.3% 2 Year Barclays Tracker vs 3.6/4% Tracker for 5 years

silvercar

I’ve been on a lifetime tracker since 2008! Worked for me, even now interest rates are relatively low.

muffinek

I actually went for Barclays 5yr tracker. I knew 2yr was cheaper but for me it is about flexibility. Everyone expects that next 2-3yrs will be bumpy so if in 2yrs it is still too expensive to fix and you need to take another tracker then product fee of £999 will wipe out any potential savings from lower rate on 2yr deal unless I am missing anything here?

Snookie12cat

muffinek said:

I actually went for Barclays 5yr tracker. I knew 2yr was cheaper but for me it is about flexibility. Everyone expects that next 2-3yrs will be bumpy so if in 2yrs it is still too expensive to fix and you need to take another tracker then product fee of £999 will wipe out any potential savings from lower rate on 2yr deal unless I am missing anything here?

No, I think that is smart. 0.6% above is good. I am on a 2yr tracker now looking for a better deal than 0.84% above base, but with a £999 fee no saving is made, even with a reduction in 0.5%.
Unless a great deal comes along I will stick on the tracker and get another at the end for 5yrs if there is no ERC.