Which mortgage rate to choose please? (urgent)

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My mortgage (£100k) is interest only until 2029 (I will try to pay down as much as I can & remortgage then if possible if not I'll have to sell up).
When I took it out I was earning. I'm now a full time Carer (hence moving it to interest only) I need a secure roof for kids but the house isn't suitable so I want to keep flexibility to move if I find somewhere that would work better. I pay it but
ExH is still on the mortgage so I have to have his agreement for any changes.

I've just come to end of a great 5 year fix. Rate is now 7.5% so need to fix again. My choices are:

1,2 or 3 year fixes rates between 3.09 & 4.23 %. All have fees (£499- £999)
All have max 10% per annum overpayment allowance & 2% early repay penalty
OR
Tracker (2 year or 4 year) at 4.5% with fee of £999 but no overpayment or early repayment charge

I am thinking of the 4 year fix (ie lifetime of current mortgage) It is a slightly higher monthly repayment (about £50) but I dont have to ask exH to agree again until 2029, plus I can overpay or sell up without any penalty if I get the chance.

My only worry is: are interest rates likely to drop significantly in the next 4 years?
I know no one has a crystal ball but I dont' want to fix for 4 years if they will?

I’m pretty risk averse, I’d rather take a longer fixed that I know I can pay. At the time we fixed for 5 years it was higher than some rates we were offered. It felt a bit sickening at the time but then rates rocketed so, actually, it was a good job we did fix for that length or we’d have been screwed. I figure the extra amount is worth the peace of mind.

Do you mean 4 year tracker? You don’t mention a 4 year fixed in your earlier list of options.

If you fix for 4 years and are intending to sell you are likely to over run your interest only term or end up paying an erc.

A tracker is not fixed. It tracks a certain amount above Bank of England, and that amount above Bank of England will remain the same. But it’s not a fixed rate. It will move in line with Bank of England (assuming it’s a boe tracker).

To be honest you should speak to a broker. They can process the product transfer for you but you will get advice for your situation.

Do you mean the 4 year tracker OP? At 100k small fluctuations in rates won't make much of a difference, although I appreciate that money must be tight. If dealing with the ex is giving you anxiety go with a longer term. Life's too short.

Hi sorry yes I meant a 4 year tracker.
The longest they will give a fixed for is 3 years. This is either at 3.1% with a £999 fee 2k erc & max 10% overpay or 4.23% no fee 2K erc max 10% overpay.

I am keen to paydown all I can. I can overpay each month & exH is prepared to put kids maintenance directly to overpay on mortgage too. My aim is to get it nearer to 50K in 4 years time so I could continue it on on my income if needed.

I didn't want to use a broker as I can't change from current provider anyway.

Personally I think interest rates are more likely to go up than down. Inflation/prices seem to be heading upward again. Food prices are noticeably jumping up.

london and country are good brokers. They found me a good rate with no fees.

I can't move from my current provider.
No one else will give me an interest only mortgage plus situation with exH.

I was thinking that the flexibility of being able to significantly overpay on the tracker (& thus maybe keep house in 4 years time) was worth the risk of the rates going up as even if they do I am paying down the capital each year?

That sounds sensible to me. Good luck.

How much do you think you’re likely to be able to overpay each year? If you’ve moved to interest only that suggests you don’t have much spare.