Mortgages – fixed v tracker – which way to go?
Discussion
Do you take the gamble or not?
Option 1 – Fixed deal – The lender takes the gamble for you – You feel secure knowing your payments won’t rise during the deal period, even if it means you are paying more now.
Option 2 – Tracker or Discounted deal - The client takes the gamble – You are prepared to take the risk that rates will not rise substantially during your deal period to get a better deal now.
Obviously, it’s not QUITE as simple as that, and will depend on personal circumstances, which your mortgage adviser should discuss with you.
HTH
TomBoo
Please note the above is information, and should not be regarded as advice.
Option 1 – Fixed deal – The lender takes the gamble for you – You feel secure knowing your payments won’t rise during the deal period, even if it means you are paying more now.
Option 2 – Tracker or Discounted deal - The client takes the gamble – You are prepared to take the risk that rates will not rise substantially during your deal period to get a better deal now.
Obviously, it’s not QUITE as simple as that, and will depend on personal circumstances, which your mortgage adviser should discuss with you.
HTH
TomBoo
Please note the above is information, and should not be regarded as advice.
TomBoo said:
Do you take the gamble or not?
Reminds me of Dirty Harry.....I know what you're thinking. "Was the BoE average rate 6% or only 5?" Well, to tell you the truth, in all this excitement I kind of lost track myself. But being as this is your mortgage, probably the biggest investment you'll ever make, and could bankrupt you if you get it wrong, you've got to ask yourself one question: Do I feel lucky? Well, do ya, punk? I think i'm going to use that line with the next client I see...
Edited by splodge s4 on Wednesday 24th February 09:47
Gassing Station | Finance | Top of Page | What's New | My Stuff