mortgage HELP needed

Smeredith79

My fixed rate ended a few months ago and due to the current uncertainty of the market i am attempting to get my head around the deals on the market.

The options open to me are to stick with my currrent mortgage provider and change to a fixed rate product with no arrangement fees or i was told that a tracker may be a better option. The reasoning behind this was that if the current bank of england base rate falls i will benefit. Obvioulsy on a fixed rate i would see no difference and would be worst off should rates fall. But on the other end of the stick is if rates rise this will be reflected in an increase in my payments.

How can we know if they will fall and am i best to be on a fixed or on a tracker.

Can anybody shed light on my current predicament, i understand everyone is in the same boat at the moment and any advice would be appreciated.

thanks

UK007BullDog

I would fix. Look at the best deal your bank can offer you at this time. If your mortgage is below £70K it might be better to stay with the lender. It depends on the rate and costs for switching. Also I have a gut feeling that the rates are still going to go up further. Deals go as quickly as they come, so you better move fast.

The FSA are looking at the product fees, hence the lenders will put up the interest rates instead. Also the banks are not lending to one another and the swap rates are high.
The inflation is going through the roof so the Bank of England has to explain itself. I cannot see any rate falls at this time.

Just alone for the peace of mind I would fix and then forget for a number of years this credit crunch and not having to worry about interest rates. If you fix for longer like 5 years you save yourself remortgage fees in the future if you usually remortgage every 2 years. If you know you are going to stay in the property for a long time then fix it and then forget it and enjoy life.