Is it smart to go on a tracker mortgage right now?

dilby

Hi all - not a financial expert in any way, so hoping your some help here.
My mortgage is due for renewal, but I am possible moving abroad towards the end next year (waiting to sort a few logistical things).

The shortest mortgage i can find at any sensible rate is 2 years, and I have the option of a fixed with an early repayment charge, or a tracker without one.

So I'm tempted to take out the tracker, but with a lot of market uncertainty at the moment I'm concerned about what could happen to mortgage rates. As a bit of background I work in tech and feel I have sufficiently seen behind the curtain enough to be anticipating some sort of AI-bubble related crash (another topic I know), in which case I thought mortgages would go up. However some folk have told me in this situaion they could actually go down?

That kind of confuses me so I was hoping some folks could enlighten me on the different major schools of thought on fixing vs tracking in a climate like this, and how outcomes could be so inversely different.

Thanks!

osmarks

Efficient markets hypothesis. Any expected change in rates should already be priced into what's available now. 

Edi81

I think you mean fixed rate is two year not the actual mortgage. 

Sterile

Only you will know how relevant the option of having / not having an early repayment charge is likely to be. While nobody on here has a crystal ball, AI is still in its growth stages, any sort of crash based on AI failing would not necessarily cause widespread market carnage.

But if peace of mind is important to you, lock in a fixed term - there are some 1 year fixes available but be prepared to pay more.