I currently have a tracker rate mortgage but I’m a bit worried that the interest rate could go up soon. With inflation above the 2% mark it looks increasingly likely the Bank of England might raise rates. Is it a good idea to get a fixed rate mortgage or should I stick with a tracker?
There is never a definitive answer to that question as it depends on so many factors and your appetite for risk. Ultimately only you can decide which is best for you but if a rise in interest rates would stretch your budget then fixing is a good idea, particularly now whilst rates are at historic lows. We have even found that some fixed rates that are currently cheaper than their variable rate counterparts.
Also, think about whether you might want to redeem the mortgage early for any reason as fixed rates usually have Early Repayment Charges and trackers/variable often don’t.
Get in touch if you want to discuss this in greater detail.
Call: 0345 345 6788