Mortgages Fixed Vs Tracker

[Dazzza]

I know we have a few experts on here so I thought I’d see what the consensus is on what type is best in the current climate.

At the moment I have two indefinite trackers that are on a fantastic rate but a few people have mentioned that taking the long-term view I should start looking at getting them onto a solid long-term fixed rate in the next few months.

I haven’t had a proper gander yet and I’m not sure if taking a short term hit on a higher rate with fixed is a better option bearing in mind I have 20 years plus to run on both. 

I suppose it’s the eternal dilemma but looking at a couple of options a 10 year rate at 4% (ish) gives some real security and remains affordable but what I potentially save on the roundabouts I could be losing on the horses short-term.

That said without rambling (too much) looking at the trend for historical peaks and troughs I’m inclined to give 6-12 months on the existing trackers and the jump ship to a comfortable fixed.

Anyone else any thoughts?

Ta 

[Nemo]

What % above or below are your trackers, and is there a floor applicable?

[Dazzza]

Neither has a floor.  One is at 1.25% and I think the other is 2.5% although I'd need to check to confirm to be 100%.

[yeo]

I took a 5 year fixed a month before the interest rate started collapsing,pretty annoying.

[jayohaitchenn]

I'm fixed at 6.2% for one more year.

[Batch]

Also on fixed. We'll be laughing when inflation goes to 15%.

[RobertT]

problem is that we are more likely faced with deflation for about a year or so - wage fixing will bite this month vs pay rises in years gone by.

Just keep an eye on the LIBOR Dazza.  If that shows signs of sustained rises then it's highly likely a fixed is the way to go.  it's probably going to be a good 12 months or so before the Bank Rate shows any signs of rising again especially as the world is in the shitter so the Pound is a far smaller risk than in the early 90's when we had to try and retain it's value by raising the rates.

Probably best to speak to an IFA

[jonny72]

I'm on a tracker at base rate + 0.79%, whilst there is a floor they have waived it so I'm only paying 1.29% at present plus it was fee free and for the life time of the mortgage as well. I can't see base rates going up enough to even get me looking at other deals for at least another 12 months.

[axs]

I have to change in Sept. Looking forward to a lower rate.

[RobertT]

I'm on a tracker at base rate + 0.79%, whilst there is a floor they have waived it so I'm only paying 1.29% at present plus it was fee free and for the life time of the mortgage as well. I can't see base rates going up enough to even get me looking at other deals for at least another 12 months.

Similar, mines 0.48% above Base Rate Lifetime Tracker with no tie in period, so I can pretty much sit it out now until they go high again.  Clearly you run the risk that fixed rates go high as well, but the long term view would suggest it's still a pretty good deal - take the bad years as you take the good ones and over 25 years it's rare for interest rates to be too much beyond 5%.