Posted on: 19th Jan, 2008 03:26 am
Do you go for fixed rate or a good tracker mortgage for the next 3 years?
My mortgage is due for renewal in the next 6 weeks and the best offer is a 5.63 fixed for three years or a lifetime tracker of the Bank of Eng base rate plus 0.23%?
My mortgage is due for renewal in the next 6 weeks and the best offer is a 5.63 fixed for three years or a lifetime tracker of the Bank of Eng base rate plus 0.23%?
Hi mwilliam3,
I would not go for the tracker loan. Adjustable rates are higher than fixed rate mortgages and over the next few years you will likely pay a higher rate of interest. Fixed rate mortgages are very attractive right now. As far as the 5.625% rate goes for 3 years, I would advise against that. My reasoning is that you can get 5.625 Fixed for 30 years right now. So why settle for something that is fixed for only 3 years instead of 30?
I would not go for the tracker loan. Adjustable rates are higher than fixed rate mortgages and over the next few years you will likely pay a higher rate of interest. Fixed rate mortgages are very attractive right now. As far as the 5.625% rate goes for 3 years, I would advise against that. My reasoning is that you can get 5.625 Fixed for 30 years right now. So why settle for something that is fixed for only 3 years instead of 30?
agreed - i have no knowledge of the tracker loan, but i would suggest, as lisa did, that you avoid it. as for the adjustable versus fixed argument, there is no benefit to you to take the 3-year at the same rate you can get for a fixed 30-year term. go for the fixed rate.
Hi mwilliam,
I agree with George that fixed rate is better to opt for. All the crunches that have been occurring in the mortgage market is because of ARM. If there is a chance of increasing the interest rate why will you opt ARM?
Only you are thinking of changing the house in near further, then may for the tracker mortgage.
Feel free to ask if you have any further questions.
Best of luck,
Larry
I agree with George that fixed rate is better to opt for. All the crunches that have been occurring in the mortgage market is because of ARM. If there is a chance of increasing the interest rate why will you opt ARM?
Only you are thinking of changing the house in near further, then may for the tracker mortgage.
Feel free to ask if you have any further questions.
Best of luck,
Larry