Would anyone consider a tracker mortgage now?

[jaychops]

Just that really.

Probably yes. We took one in 2007 after a fix ended and did fine with it.

We could afford it if the rates went up significantly at which point bailing to a fix to going IO would have been options. IO though was much easier to get than it is now.

Colleague who took a fix at the same time was paying a LOT more.

But 2007 was a different time. We took one then just before rates dropped like a stone and our mortgage was virtually interest free for about 15 years.

However that was then and this is now. To answer the OPs question, it depends.

You need to compare the tracker rate vs what fixes are available, also what is your lender's SVR. If the tracker is cheaper, it doesn't matter if rates go up a bit, you will be better off, and benefit again if rates fall. However you don't have certainty and there could well be people who took trackers a year or two ago who are now paying rates a lot higher than they started off at.

Take into account the impact of fees. If your mortgage is small, it's often not worth paying a high fee, so it might be worth paying a higher rate, to avoid paying a fee. But if your mortgage is larger, it can be worth paying a large fee, to get a lower rate.

How much do you owe and are there any reasons why tying into a fix even for a couple of years is likely to be expensive, eg you know you will want to move within a year.

Yes definitely. It’s only really when interest rates are very low that a fixed rate is a better bet.

Currently taking out a tracker mortgage. Didn't want to be stuck paying a higher rate when they fall again. If they rise a bit more in the meantime I'll be OK.

Yes, just have done a 5 year tracker.
I can cope with higher as it’s a small mortgage but I suspect (hope!) it will come down over the time period and so I would be worse off with a fixed. It’s a bit of a gamble either way at the minute and a really frustrating time to renew!

Yes _ I anticipate the long term rates will drop as inflation drops, ergo I might go tracker then later chicken out and get a fixed on a lower rate than I'd be quoted today

Yes
if things are the same as the current situation in March when our fixed ends, we will get a tracker.
I wouldn’t fix at this current time, I think rates will drop (though not back to where they were a couple of years ago).

Interesting to read the replies. I purposely didn't put any info in the OP as everything I read at the minute is about fixed rates. @Twoshoesnewshoes our fixed rate also ends in March, and I'm thinking similarly to you.

It might be possible to reserve a fixed rate without having to commit to it or pay any fees. You then have it as a back up and can then reassess in the new year.

It's hard to establish.

At least with a fixed rate you may end up paying more, but you have the certainty of that rate for the period and can plan accordingly.

I think whether I would be willing to take a tracker would be dependent on my knowledge of economics, plus whether I was actually capable of coping with the consequences if rates were to increase significantly over the time period of a tracker.

Generally predicting where interest rates are heading and over what time period is a bit of a lottery. A lot of people seem to think they are nearing the peak, but maybe that doesn't take into account stuff like random world events, a second wave of inflation etc.