Discount tracker or fixed?

[southeastlady]

Our lovely fixed rate mortgage of 1.79% ends in April.
Been looking around and the lowest fix I can find is 5.65%

Or we can go for a discount tracker at 2.60%

If we went for the fix the monthly payment would be £400 a month more than the tracker.

I’ve always had a fixed rate so not sure what to do?

No one can tell you what is going to happen to interest rates.

Personally I would go with the tracker and overpay by £400 (if permitted) to reduce the capital owed. This way any interest in the future will be on a lower capital sum.

Have a look at Capital Economics base rate forecasts, they're pretty good. Last week, I think they were forecasting 5% by Q1 2023 but that might have been revised upwards.

It should give you a decent idea of the cost of the two options a year or so out.