Tracker fans - what fixed rate would tempt you?

Nailer99

I’m remortgaging and hold an offer of a decent tracker at BOE+0.26, but I’m becoming increasingly tempted by the 5-year fixed rates as they come down. 

A 5-year fix at 4.13% has got me seriously considering. 

Fellow Tracker fans - how low do fixed rates need to go before you’d leave your tracker deal behind and switch?

muffinek

I can't think of a number. I hope for some serious rate cuts next year to get economy out of recession like they did after 08 crash. 

mjstokes85

I fixed at 4.58% for 5 years, can't see how rates are going to go back to anything under 4 for a long time.

Nailer99

It’s all crystal ball gazing and guesswork isn’t it? So difficult. Let’s see what the Bank of England say today, at least.

I have now applied for the 4.13 5-year fix, just in case it doesn’t hang around for long. 

Nailer99

Hmmm. Now BoE saying 4% may be the peak. Trackers looking more attractive again…

Hope we see fixed rates falling in reaction to this. 

RelievedSheff

muffinek said:

I can't think of a number. I hope for some serious rate cuts next year to get economy out of recession like they did after 08 crash. 

I think you will be very disappointed.

muffinek

Certainly I am not making any plans on that but stranger things happened in the past. 

Zerforax

mjstokes85 said:

I fixed at 4.58% for 5 years, can't see how rates are going to go back to anything under 4 for a long time.

A prolonged recession would do it.

Obviously no one knows what will happen but I think at the moment rates could go down in the forseeable future or even go up or stay as they are!

jonnypb

A sub 4% fix would tempt me.  Current indications are that the BoE base rate won't go over 4.5%, if true then at worst my mortgage will be 4.89%.  If the BoE base reduces in 2024 like it's forecast then maybe my mortgage will be 3.89%.

This is the first time I've ever gone down a tracker route, maybe it'll pay off, maybe it won't.  My mortgage isn't big like some so any rate changes won't effect the payments much.  I thought it was worth a punt given the current predictions.  Plus I may move in the next couple of years and the ERC on a tracker is a lot less than what you have on a fix deal, especially if it's a 5 year fix.

ACG

I was on a conference with a lender this afternoon. They were asking us about tracker rates. 
My answer was that at the back end of last year, the difference between fixed and tracker rates was as much as 4%! That gap has now closed to around 1%, its not much of an incentive for the risk anymore (in my opinion).

Ganga

Zerforax said:

mjstokes85 said:

I fixed at 4.58% for 5 years, can't see how rates are going to go back to anything under 4 for a long time.

A prolonged recession would do it.

Obviously no one knows what will happen but I think at the moment rates could go down in the forseeable future or even go up or stay as they are!

Covering all bases there then