Remortgage or go on to Tracker/Variable Now?

Adamc

I've always opted for a fixed rate mortgage but I would like to move within the next 2 years.
I am wondering if to opt for a tracker or variable rate for the first time in anticipation of a reduction in rates and to avoid exit fees if I choose to sell sooner rather than later. Alternatively I see no reason why I couldn't wait until the end of a 2 year fix before moving if needed. 

I guess what I am asking is am I being stupid not to fix? Obviously rate falls are predicted but you pay a premium for certainty and a guarantee against paying silly rates should things go crazy.

Has anyone been in this situation and what did you do?

BikingBud

Everybody has been in this situation - you cannot double guess the market, some might say they have but that is more likely luck. 

Would like to move or are going to move, different levels of intent will support different levels of financial risk.

Can you move and port your existing mortgage?

Anticipation of rates dropping to what and when? What might you miss out on saving if you opt for 5%for 2 years or might "save" if you were on SVR at 7-8% and then the rates drop? Paying more on a higher SVR or tracker might, or might, not be recovered once the anticipated rate drop occurs, or doesn't.

What exits fees might be payable? These could be offset against missed saving if you fix too high and want to bail.

The only thing that is stupid is not understanding your position and what your different options might cost.

If you go through a good process to understand what it might cost if interest rates stay high, and they drop then you have at least made a decision based upon your best understanding.


Otherwise flip a coin.

BarelySentientAI

Adamc said:

I guess what I am asking is am I being stupid not to fix?

Thousands of people are on tracker rates.

amnblog

With the majority of Lenders there is nothing to stop you moving with a fixed or tracker rate in place. 

Sounds like you need some 1 to 1 advice, who is your current Lender?

Hoenir

Adamc said:

I am wondering if to opt for a tracker or variable rate for the first time in anticipation of a reduction in rates

When are expecting lending rates to fall and to what level. At the beginning of this year. The "noise" was for 7 cuts this year. So far there's been one. Similar pattern to inflation in 2023. Expectations were for a fall. Social media unfortunately has a poor prediction rate of success.