Mortgage Ending 4 February at 9:59PM in Mortgages & endowments 1 reply 322 views

alw1971

Hello,

My Current 2 year Fixed Rate Mortgage (1.49%) is ending 31st March.
I have agreed another 2 year fixed at 4.99% to start on 1st April.
Remaining Balance is £25,340 and I have 8 years 6 Months remaining.
I am currently overpaying obviously trying to pay it off sooner.
My question being, should I remain with the 4.99% fix for 2 years (wife is wanting to move) therefore a 2 year fix or should I think 4.79% Tracker?

Our current repayment is £261 a Month.

Any other options welcome.

Thanks,

Andrew

ACG

With fixed over tracker you are basically deciding do you want to pay extra for the security. 
At 0.2% difference, there is not really a buffer. The expectation is that the base rate will go up once or twice more. If it goes up once at the next review, you are already worse off. Obviously if it doesnt go up again you are worse off with the fixed but on £25k , 0.2% must be what? A quid a month difference?