Tracker mortgage??

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Would you risk a tracker mortgage in this market? Currently firming up our mortgage options and our broker has found a pretty competitive 2 year tracker option.
Fixed 2/3/5 year would all be at 2.75% 2 year tracker is starting at 2.2%.
Starts at nearly £100 less a month.

For interest, we have a combined income of juts over £100k, mortgage needed is £385k. Both our jobs are very secure.
what type of mortgage would you plump for? Our broker doesn’t want to sway us either way!

I would 100% be going for a 5 year fix, but I am risk averse…

I would also fix, either 3 or 5.

Fixed 5 years with inflation at 9% interest rates are going to go up.

I would fix for 5 years at 2.75%.

I’d absolutely fix for 5 years. No way would I risk a tracker mortgage in the current climate.

I would fix. I’ve just taken on a tracker mortgage for my property but only because I intend to try to sell it later this year (cladding prisoner!) and don’t want to pay an early repayment fee.

Tracker, in this climate?? I think you'd have to be mad.

I've just fixed for 5 years, I'm now wishing I'd fixed for 10, but I'm a bit of a commitment phobic & didn't want the ERP if I left the U.K.

I've always had trackers. I'd be fixing right now.

Thanks for the advice. The 3 year fixed is a better deal overall in terms of early repayment/ overpaying/ renegotiating fees…
and it is not with Virgin (as the others are. I am not giving Branson my money!)

will definitely go for a fixed!

My friend had a tracker mortgage years ago. I didn't think it was still a thing?

She was so hocked up, then her bf gave up work. They had to sell but now things are okay.

My nerves couldn't take it. Especially not now!

Amazed your broker isn't advising fixes
Unless you have intimated you may be looking to move house soonish

Fix fix fix - I'm a mortgage adviser

We are trying to fix, after having a low tracker for years. We don't want to be caught out when the interest rates go up and up. Sorry to just on your thread, but just wanted to know, if KerryO87x can answer a question for me. We currently have the house insurance in my name (partner is on the policyholder as well). Policy is in my name. Mortgage is in his name. Want to remortgage. Will this cause a problem for our remortgage ??

@KerryO87x the broker said ‘it’s up to us’
I really don’t know much different- never bought a property before. What I want is for him to say ‘this is the best product, inflation is terrible, fix fix fix!’ But he hasn’t. Surely that’s his job 😜

No intention of moving. This house will last us for years and years.

We took out a tracker in 1997 - seemed like a good idea at the time... and then we were stuck with it whilst interest rates went up and up. Should have fixed.

So we fixed at the end of that... and then interest rates came down!

We have been on a tracker (0.25 above base rate) for years now, which has clearly been very favourable, and we're about to pay it off. But if I was mortgaging now, I would take a fixed rate for sure.

No shouldn't cause any issues at all. All we ask that it's in place.

Definitely a 5 year fix at the moment. Especially as the difference in interest rates is minimal there. Won't take much of an increase for that 2.2 to go over the 2.75 (and then keep rising!).

I would def long fix too. I suspect in 2/3 years we may well still be looking at higher interest rates. If you plan to be in the property for years the only reason not to do a long fix is if you think interest rates will fall in that time. I'm not convinced of that.

I have 4 years to go on a 1.89 deal and we are trying to pay this down as much as possible as we expect interest rates will be much higher in 4 years time than they were a year ago.

A broker won't they'll just tell you your options.

A mortgage advisor thru the bank is more regulated.

Go for a fixed rate, either 3 or 5 years.

The BoE’s next rate review is mid-June, no doubt interest rates will rise again. If you went for a tracker product you’d probably see an increase in the rate within a month.

If you’re planning on staying in the house for a long time, would you consider a longer fix? I’ve got a 10 year fix. Took it out 2 years ago and I’m so glad I did! Previously I’ve always gone for at least 5 year fixes as the fees and hassle to remortgage make it expensive and time-consuming. At the moment, rates are only going to go one way.

@KerryO87x
one more piece of advice as I’m getting jittery! We can get the same rate fix (2.74%) at a 3 and 5 year fix. We are looking at a 85% LTV and will be unlikely to move for a good 5-10 years. We’d stand no chance of early repayment in that time unless we won the lottery!

Would a 3 or 5 year fix be better in our circumstances? We can afford that repayment and could go up another couple of hundred a month if needed. Im juts not sure what’s for the best!

Fixed. We fixed last autumn at 1.09% - the rate changes show you how much change there has been in the market already, no way would I want a tracker right now. We’ve always fixed though as I’ve been too anxious over the last years about interest rates rising. We would have been better off for much of the last decade on a tracker but I wouldn’t entertain that now. And remember: the banks themselves are likely to be pushing trackers right now as they will make more from
them longer term!

I would only consider a tracker if I had a tiny mortgage & lots of savings. In your example I would go for fixed for 5 yrs.

As you are planning to stay put I would fix for 5 yrs.