fix or tracker for two years

ftb_2019

Considering the current climate, what would you guys do?

Ive been offered 4.99 fix or 5.79 tracker (0.54 above base)

tia

tacpot12

My guess is that interest rates will fall over the next couple of years, so the Tracker is probably best, but if you can't withstand interst rates going above 5%, then the fixed rate is going to be safest. 

Hoenir

Take the fix and overpay by the difference between the 2 products. That way you are guaranteed to achieve the best outcome. 

ftb_2019

that is a good response, thanks!

[Deleted User]

I opted for fix but shop around for the best rate. 

BarelySentientAI

Hoenir said:

Take the fix and overpay by the difference between the 2 products. That way you are guaranteed to achieve the best outcome. 

Not quite - but it does make the best of any time where the tracker is above the fix.

amnblog

These sound like Halifax existing customer rates,

If you have a sizeable mortgage balance (over £175,000) speak to a broker and get the 4.68% fixed.

What ever you do, do it today (Thursday 25th) because Halifax rates are going up 0.20% tomorrow.

CharliePtr

I have been wandering about this, I have seen rates reduce slowly in recent months but now signs of new rises. I have my remortgage in July, wondering to wait or do something now?

amnblog

In most circumstances you can take action to secure a rate now to hedge against future rises whilst leaving yourself able to still benefit from rate falls.