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Fixed rate or tracker rate?

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  • Jemma01
    Jemma01 Posts: 540 Forumite
    Fifth Anniversary 500 Posts Photogenic Name Dropper
    edited 23 July 2024 at 9:23PM
    I'm not qualified to advise you what to get, esp as it requires a lot more details that you haven't provided. Your life style and affordability should dictate what you get, and also what your LTV is.

    My neighbour and I were talking about our rates, I went for a tracker with HSBC direct @ 5.44% and he went with another lender and got something like 4.39% fixed for 5 years. Neither of us cared whether the bank of England will drop the rate or not, and we certainly don't think it'll drop in August. He wanted financial stability and I wanted pay off asap with no limit.

    Your situation should dictate what works for YOU
    I'm FTB, not an expert, all my comments are from personal experience and not a professional advice.
    Mortgage debt start date = 11/2024 = 175k (5.19% interest rate, 20 year term)
    • Q4/2024 = 139.3k (5.19% -> 4.94%)
    • Q1/2025 = 125.3k (4.94% -> 4.69%)
    • Q2/2025 = 108.9K(4.69% -> 4.44%)
    • Q3/2025 = 92.2k   (4.44% -> 4.19%)
    • Q4/2025 = 44k      (4.19% -> 3.94%)
    • Q1/2026 = 26.5k  (3.94%)
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