Tracker rate mortgage change

[lonmarjc]

I’m still on a 0.8% tracker. Looking at swapping to a fixed rate given the likely increases over the next few months (should have looked sooner I know).

Best rate I can see at the min is with current provider at 2.8% for 4 years

Just thought I’d get something perspectives before I take the plunge.

 

[ruben33]

@lonmarjc Stay on the tracker, I'm amazed so many people are moving off them.

 

[lonmarjc]

@ruben33 I’ve heard of a few moving off myself and that’s what got me thinking am I better off fixing now for a few years.

 

[ruben33]

@lonmarjc Inflation is already dropping, I'd personally hold off

 

[nalle]

@ruben33 Yes we've waited to see what is happening. We're +1.25% so a bit higher than OP, but weren't going to make a knee jerk reaction at first increase.

I think ppl have been switching due to articles in papers.

I do think there'll be further increases into 2023,but at smaller increments, possibly another 1% throughout the year. I'm hoping not much more than that.

 

[mayz]

@lonmarjc Once you give up your tracker, you will never get another, so there's that to keep in mind; you'll be at the mercy of whatever the lenders feel like charging for the remainder of your loan. Locking in for just four years might not be that advantageous if you still have a long time left on your term and you end up paying a lot more than the ECB refinance rate plus 0.8% after four years. It's also risky if your LTV is still high, as you'll have a difficult time switching mortgages to take advantage of lower rates if property prices fall in the near future.

 

[lonmarjc]

Thanks for the comments all. I did wonder if longer term it may be worth keeping the tracker. I’m mindful that once I’m off I’m off!

Locking in at a rate now might be advantageous in the medium term but hard to know what the future might look like especially if we don’t get a soft landing on inflation.

I could have gotten 2.05% fixed a few months back and now its 2.8%. After ECB meeting next week it will likely rise again and I supposed that’s what was making me as the question. Do I lock in or just ride it out.