Tracker or Fixed in current climate?

welshchocolatelover

What would you advise, in the current financial climate? Looking at a 3 year deal - fixed or tracker? atm, Halifax Fixed rates gives lower payments than the tracker.......

RubyShoes

Really? What fixed rate are you looking at? And what LTV?

Dick_here

I'd say a Tracker. An election is only 2-3 years away max, and rates will surely drop in the meantime. Trackers are linked to BoE, whereas Fixed deals are linked to LIBOR. If you want a fix, get one now, but I think a 3 year Tracker is the better option.

welshchocolatelover

90% LTV, the fixed rate is 5.89% for 3 years (£999 fee), or 5.99% for 3 yers (£499 fee).

RubyShoes

Halifax have a 3 year tracker at 90% LTV for 5.42% 0.17 above the base rate. :j

It has a £999 fee.

Seems a better deal than the fixed rates they offer.

xxx

welshchocolatelover

Really?! I couldn't see that on the website......

welshchocolatelover

Should have said, our mortgage is currently with the Halifax - we are just changing products as our current fixed rate ends at the end of this month. Does this make a difference?

RubyShoes

Ahhhh right. That explains it. I just looked at the exsisting customers rates. They are rubbish, aren't they!!!

welshchocolatelover

Just a bit :-( But we have to stay with the halifax for the time being - our salaries probably wouldn't be enough for anyone else to take us on. This is for the short term though (have gone part-time since having our second son).......

ixwood

I'd fix personally. Well am as it happens. Fixed deals are available below the current base rate and all the trackers are above it at the minute.

I can't see rates coming down very much with inflation reappearing globally and the price of pretty much everything on their way up.

I personally think rates are going to return to their normal (much higher) range over the next few years and the last decade or so of cheap rates isn't the new norm, but that's wild speculation of course.

MWOOLY10

Well i have just remortgaged myself.. I left the Halifax who had me on a 7.25% Variable.. and ive moved to The Abbey on a 5 yr fixed mortgage at 5.6% which is a big saving

The fee was only £499

According to my mortgage advisor he thinks there will be one more interest rate drop then it will stay there for a while but eventually it will start to slowly rise again.. Hence why he advised me to take a fixed rate mortgage

This was my first post but thought it might help a little