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    • Beans27
    • By Beans27 8th Feb 18, 11:52 AM
    • 89Posts
    • 53Thanks
    Beans27
    Fixed rate or Tracker?
    • #1
    • 8th Feb 18, 11:52 AM
    Fixed rate or Tracker? 8th Feb 18 at 11:52 AM
    Hi all, any advice from the intelligent people here much appreciated
    I previously created a thread about which mortgage deal to change to, but I'm not sure how to find it. In any case, situation has slightly changed now - spoke to Natwest and they did a desktop valuation which increased the value of the house, so we now have a better LTV figure.


    In a nutshell:
    House value - 271k (according to the 'new' valuation, although that is hugely over optimistic in reality).
    Mortgage - 170k
    Current fixed rate deal of 2.28% ends in March.


    The best new offers from Natwest are
    2 year fixed rate (plus the product fee 995) @ 2.09% - brings monthly payments down by 12 a month
    2 year tracker rate (plus the product fee 995) @ 2.04% - brings monthly payments down by 16 a month


    So not much in it - my question really is whether there would be any point going with a tracker rate? I'd feel a lot more comfortable with the security of fixed, and I wouldn't have thought a tracker would be going down at all, 2.04 sounds low anyway?


    I don't really want to start applying to other mortgage providers - situation has changed since we bought the house 4 years previously, my partner now has a poor credit rating and outstanding loans from a failed business.


    Thanks in advance
Page 1
    • dimbo61
    • By dimbo61 8th Feb 18, 1:11 PM
    • 9,880 Posts
    • 5,315 Thanks
    dimbo61
    • #2
    • 8th Feb 18, 1:11 PM
    • #2
    • 8th Feb 18, 1:11 PM
    So why are you looking at only 2 year deals ?
    Will partners Credit rating be better in 2 years ?
    Will interest rates be higher in 2 years ?
    How much extra would a 3/4/5 year deal cost for security ?
    If you plan on moving in 2/3 years then a 2 year deal maybe fine
    • Filo25
    • By Filo25 8th Feb 18, 1:31 PM
    • 1,466 Posts
    • 2,127 Thanks
    Filo25
    • #3
    • 8th Feb 18, 1:31 PM
    • #3
    • 8th Feb 18, 1:31 PM
    Personally I would be fixing for as long as I could in the current environment.
    • Beans27
    • By Beans27 8th Feb 18, 2:31 PM
    • 89 Posts
    • 53 Thanks
    Beans27
    • #4
    • 8th Feb 18, 2:31 PM
    • #4
    • 8th Feb 18, 2:31 PM
    There are a couple of 5 year deals, they are higher than the rate they are on now and honestly we can't afford any higher monthly costs, I was hoping to get it down.
    I doubt his credit rating will be any better - he has a large loan that he is paying the minimum on, and I can't see that changing.


    Filo, if you would fix for as long as you could in the current environment, presumably that's because you think rates are going to start going up? I don't have enough understanding about the financial market to hazard a guess. I'm hoping that in 2 years we will be in a better position (i.e. partner will have a regular income would be a good start!)
    • getmore4less
    • By getmore4less 8th Feb 18, 3:22 PM
    • 32,037 Posts
    • 19,225 Thanks
    getmore4less
    • #5
    • 8th Feb 18, 3:22 PM
    • #5
    • 8th Feb 18, 3:22 PM
    If you can't afford more(either higher rate now or rates going up) then your only option is to fix for 2y now to give time to sort out your finances.
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