A two-year Tracker followed by a longer-term fixed rate after that will likely be the most cost-effective option in the long run.

Rates are expected to stay sub-1% for the next 12-18 months, and considering your tracker would need to rise by 1.4% to be as bad as the fixed, you would make much bigger net gains by having the tracker for 2 years.

Hey all!

We are looking to move and increase our mortgage and the best deals we can get, as we only have a 15% deposit, are 6.19% for a two year fixed rate or 4.79% for a two year tracker? Obviously the tracker looks the best deal and the repayments are £300/£400 cheaper per month (at the moment). My query is what do people think about tracker deals now, do you think the interest rate is likely to increase over the next two years?

I know I'm expecting people to have a crystal ball :-) but I'm just interested in general opinion.

Thanks

twinmum