Fix rate or tracker mortgage??

[rodge 10]

I have a morgage of 60000 with flat worth about 90000 and my current deal is coming to a end and thinking of a 5 year term fix or a life tracker with no charges for leaving at any time but not sure which way to go:help:

 

Hsbc or doing a tracker 5.79% £595 book fee and every thing else free and with my financial advisor finding 5.98% with £595 fee the hsbc seems ov better deal but not sure is it tracker or fix???????????????????

[BertieBasset 10]

interest rates, it is widely believed, will fall during the final quarter of this year, so perhaps a tracker may be best for you

 

I have a morgage of 60000 with flat worth about 90000 and my current deal is coming to a end and thinking of a 5 year term fix or a life tracker with no charges for leaving at any time but not sure which way to go:help:

 

Hsbc or doing a tracker 5.79% £595 book fee and every thing else free and with my financial advisor finding 5.98% with £595 fee the hsbc seems ov better deal but not sure is it tracker or fix???????????????????

[doodle 10]

You need to have a good think of what you think the interest rates are going to do over the course of the mortgage. I know you don't have a crystal ball, but if you think that they might go up, then the fixed is a better bet. But if you believe they are going to drop or stay the same, the tracker is the best.

 

We took out our mortgage in April of this year. We decided on a 10 year fixed rate, as we believe that if an recession does hit, that interest rates will go up. We also liked knowing that our mortgage payment will be the same each month and wasn't worried about losing out if the rates did go down.

 

Hope this helps you to think about which is the best for you.

[Phylis 10]

Longer term fixed rates are great if you dont plan on moving but they dont offer the best interest rates. We opted for a three year fix and are probably going to do the same again next year. We prefer knowing what our payments are going to be.

[HotPhil 10]

Everyone's situation is slightly different. Best bet is to contact an Independent Financial Advisor and get their opinion. They're free and are regulated to give you the best advice.

One thing to throw into the fixed/variable debate is that I remember doing some in-depth calculations a couple of years back on whether a fixed or variable loan had been better in the past 25 years. The difference between variable and the best fixed rate offers at any given time over that period worked out to be negligible. No one can predict the future, and many (like me) prefer knowing what payments will be each month!

[theoilguy 10]

Longer term fixed rates are great if you dont plan on moving but they dont offer the best interest rates. We opted for a three year fix and are probably going to do the same again next year. We prefer knowing what our payments are going to be.

 

HSBC has rates at 4.99%. Seems great doesn't it?

 

But, it has a 2000 quid fee, a x3 salary and must be renewed in two years.

 

So, it's really 6%, if you qualify.

 

The cheap deals are going fast, and these teaser loans are there to draw you in.

 

Goodness knows what the rates will be next year!

[musbird 10]

You need to speak to a mortgage advisor really. Its all based on how you feel about the "risk and what you feel will happen.

Some companies will do a rate where its free to swap to another rate in 12 months if the interest rate does something you dont like.

[Tony 10]

All rational predictions are for a base rate drop in the new year (maybe before) down as much as 0.75% by Easter. Liquidity is gradually returning to the mortgage market and with it there are a few more deals around than there were just a couple of months ago. That trend looks likely to continue.

 

If it were me I wouldn't be fixing right now but you need to make your own decisions. As said above, a half decent mortgage advisor should be your friend.

[Sheffy2008 10]

All rational predictions are for a base rate drop in the new year (maybe before) down as much as 0.75% by Easter. Liquidity is gradually returning to the mortgage market and with it there are a few more deals around than there were just a couple of months ago. That trend looks likely to continue.

 

If it were me I wouldn't be fixing right now but you need to make your own decisions. As said above, a half decent mortgage advisor should be your friend.

 

 

Don't be daft Tony

 

'Returning liquidity'.....:loopy:

 

You haven't been paying attention.

[Phylis 10]

They let you back in then

[Tony 10]

He looks banned again to me.

[Tomataheeed 10]

All rational predictions are for a base rate drop in the new year (maybe before) down as much as 0.75% by Easter. Liquidity is gradually returning to the mortgage market and with it there are a few more deals around than there were just a couple of months ago. That trend looks likely to continue.

 

If it were me I wouldn't be fixing right now but you need to make your own decisions. As said above, a half decent mortgage advisor should be your friend.

 

Tony, this comment was prior to the events in the US over the weekend. I know you said some time ago that some big banks would go under...bearing in mind the events of the weekend with Lehman and Merryl and possibly AIG to follow, is this still your view about returning liquidity?