Many clients ask me at the moment whether to fix their mortgage or go for a base rate tracker. As always my advice is client specific, but their are a few issues to consider when deciding whether to fix or not. With the base rate so low, it is very tempting to so for a low tracker rate. However, if the base rate was to increase to say 4%, these same tracker rates look almost disastrous, especially if you are on a tracker 3% or above over base.
As for fixed, I have always had a golden rule. If you can fix under 5%, fixed it for as long as you can! I had many clients go for a 10 year fixed at 4.99% some months ago. I think this could prove to be great value.
My concern with 2 or 3 year deals for both tracker and fixed rates is that the arrangement fees are getting ridiculous!
