Mortgage

[Floridatilly]

Any experts out there or financial advisers! Anyone with a crystal ball?
My sister is a mortgage advisor so I do have her advice but still completing what to do.
With the obvious around the corner I am thinking that mortgage rates might rise (more likely than not)
We are currently on a good base rate tracker, had it a very long time and it’s a mortgage life time deal (not available any more). If we move our mortgage to a 2 fixed deal we will save £27 per month so not a great amount however we will know exactly what our payments will be for two years with no concern of it rising.
But once that deal ends we will no longer be on our current really good deal and there may be no good deals out there in two year.
So, do we stick with what we have or get a fixed deal (we have 11 years left on our mortgage)
Where is that crystal ball when you need it lol

[Loftus]

I don't think you need a crystal ball to know that interest rates and mortgage rates will rise, there's not much further they can fall. The crystal ball is needed for the pace of the change.
I'm also on a lifetime tracker but mine had a collar at 3%, so I'm happy to stick with it as I plan to pay it off out of my lump sum when I retire in a couple of years and I don't see my payments rising in that time.

[katiec68]

We did a 10 year fixed a couple of years ago - yes it's about £10 more a month more but we know exactly where we stand.
Thankfully we'll only have a year left when it finishes.

[Pinchy]

We're addicted to cheap debt and raising the interest rates to manipulate the economy is no longer as safe as it once was. Can't see the rates increasing appreciably for many years, especially as we are about to take a further economic shock from Brexit.

[Guest]

I don't have a crystal ball, but IMF etc were saying this week that the economic bubble is showing signs of overheating and talked about the need for governments to consider capacity for reducing thier interest rates and taking other preventative measures.

I too have a lifetime tracker. I am sticking with mine.

[Jaybeez]

We had a lifetime tracker which we converted to a 5 year fixed rate a few years ago. The repayments are now £10 a month cheaper than before and the advisor at Nationwide advised us to stick with the tracker as she didn’t think that the interest rate would go up. The rate went up 6 months later so we were really pleased that we changed. Our mortgage only had 6 years to go though and with overpayments it will be paid off before the 5 years, definitely consider the length of time you have left on your mortgage.

[Guest]

I have 30 years left on my mortgage :|

I'm only a 2 year fixed so it's definitely a concern for me. Fortunately, my mortgage makes up roughly 10% of my wage so I do have room for it to rise - I purposely bought something small to get myself on the ladder. It's never going to be a forever home as in 3-4 years I want to relocate.

[Floridatilly]

It’s definitely hard to know what to do for the best. My sister thinks we should stick with what we have. Whichever way we decide it will be wrong, always our luck lol

[Leggibone]

I think you have to consider the risk of the ‘fixed rate’ rates increasing substantially over the next few years as lenders tighten their belts to brace for uncertainty in the times we live in. Not sure how your tracker works but if you had reasonable payments 10 years+ ago when the interest rates were higher then you know what your getting from your tracker, but the risk of the same types of deals not being out there in 3-5 years time is real.