POLL: You choosing this TRACKER or this FIXED mortgage??

proformance

Rather than simply ask the question, I thought a poll might be a fun and useful way of getting more engagement. It's a real life choice that I need to make (very quickly), so please do feel free to augment your choice with your rationale. 

Both options are for two years, but the option 1 TRACKER has NO early exit fees, while the option 2 FIXED offer expires in Nov '23, so I am able to switch to it (for free) at any time until. 

I've done the math, and the option 2 FIXED one is ~£2,884 cheaper across the two year period than the option 1 TRACKER, based on the current variables (i.e. the BOE BR not changing)

I'm asking because I'm not clever enough to model the total two year costs when factoring in assumptions about WHEN the BOE BR might change and WHAT it might change to.

Obviously, if it went down a whole point to 3.25% in the first three months (of the two year span), then I'd have been significantly better off with the option 1 TRACKER. But there are so many permutations that I'm a bit stuck.

housebuyer143

Your fixed comparison makes no sense? No fix is for 7 months. How long a fix is it as that will make a huge difference to the answers you get.

proformance

housebuyer143 said:

Your fixed comparison makes no sense? No fix is for 7 months. How long a fix is it as that will make a huge difference to the answers you get.

Your reply makes no sense? 

Could you please rephrase it?

Edit-sorry, I think I know what you mean. I have updated the OP. I was trying to say that the fixed OFFER expires at the beginning of Nov... 

So I'm painting a scenario where I could, in theory, take the TRACKER, see how the rates play out, and then switch to the FIXED just before Nov without any fees. 

aoleks

4.99% TRACKER (0.74% + BR 4.25%)

proformance said:

housebuyer143 said:

Your fixed comparison makes no sense? No fix is for 7 months. How long a fix is it as that will make a huge difference to the answers you get.

Your reply makes no sense? 

Could you please rephrase it?

Edit-sorry, I think I know what you mean. I have updated the OP. I was trying to say that the fixed OFFER expires at the beginning of Nov... 

So I'm painting a scenario where I could, in theory, take the TRACKER and switch to the FIXED just before Nov without any fees. 

you're talking of a 2 year fixed period, yet you said it expires in Nov 2023. Nov 2023 is 7 months away, not ~24...

proformance

aoleks said:

proformance said:

housebuyer143 said:

Your fixed comparison makes no sense? No fix is for 7 months. How long a fix is it as that will make a huge difference to the answers you get.

Your reply makes no sense? 

Could you please rephrase it?

Edit-sorry, I think I know what you mean. I have updated the OP. I was trying to say that the fixed OFFER expires at the beginning of Nov... 

So I'm painting a scenario where I could, in theory, take the TRACKER and switch to the FIXED just before Nov without any fees. 

you're talking of a 2 year fixed period, yet you said it expires in Nov 2023. Nov 2023 is 7 months away, not ~24...

Thanks for pointing it out and see I see the confusion.

I amended my post above, as well as the original one now and I hope it makes sense. 

aoleks

4.99% TRACKER (0.74% + BR 4.25%)

from what I understand, you have an offer that you can think about until the very last minute, in Nov 2023, and the option to go on a tracker product, which you can do at pretty much any time. correct me if I'm wrong.

since the fixed offer is locked in and you can't lose it, and a tracker is a tracker, why not wait another 6 months before deciding what to do? it would give you some time to see what the markets are doing and how inflation behaves.

should things worsen and fixed rates are more expensive, you can still fix today's rate as offered. should things improve and you want to fix, you can re-apply for a new fixed rate (tell the lender to update the rate). should things improve slowly and the base rate is declining, you can always join a tracker and reassess in a few months time.

proformance

aoleks said:

from what I understand, you have an offer that you can think about until the very last minute, in Nov 2023, and the option to go on a tracker product, which you can do at pretty much any time. correct me if I'm wrong.

since the fixed offer is locked in and you can't lose it, and a tracker is a tracker, why not wait another 6 months before deciding what to do? it would give you some time to see what the markets are doing and how inflation behaves.

Right.. That's the question, lol.. 

FashionHeart

4.63% FIXED

proformance said:

Rather than simply ask the question, I thought a poll might be a fun and useful way of getting more engagement. It's a real life choice that I need to make (very quickly), so please do feel free to augment your choice with your rationale. 

Both options are for two years, but the option 1 TRACKER has NO early exit fees, while the option 2 FIXED offer expires in Nov '23, so I am able to switch to it (for free) at any time until. 

I've done the math, and the option 2 FIXED one is ~£2,884 cheaper across the two year period than the option 1 TRACKER, based on the current variables (i.e. the BOE BR not changing)

I'm asking because I'm not clever enough to model the total two year costs when factoring in assumptions about WHEN the BOE BR might change and WHAT it might change to.

Obviously, if it went down a whole point to 3.25% in the first three months (of the two year span), then I'd have been significantly better off with the option 1 TRACKER. But there are so many permutations that I'm a bit stuck.

Do what most people do (including myself) and switch to another fixed rate. 
That way, you will know what you're actually paying for each month as with a tracker you won't.

housebuyer143

I wouldn't take that tracker yet as it's more than the remaining fix. Potentially in November I would.

proformance

housebuyer143 said:

I wouldn't take that tracker yet as it's more than the remaining fix. Potentially in November I would.

How can I do that? My current product expires in 1 week lol. 

You suggesting ride the SVR until I know more? I don't think that'd be wise... 

housebuyer143

proformance said:

housebuyer143 said:

I wouldn't take that tracker yet as it's more than the remaining fix. Potentially in November I would.

How can I do that? My current product expires in 1 week lol. 

You suggesting ride the SVR until I know more? I don't think that'd be wise... 

Ah ok, I have really got confused ha ha ha!

In that case, I would take the tracker as its got no ERCs and then see how things go. I am on a tracker though for the same reason so am biased ha ha.