Which is the way to go - fixed rate mortgage or tracker?

With changes predicted in the mortgage market, you may be asking if should you go with a fixed rate mortgage or a more risky tracker.

The BoE is attempting to reassure the markets that the Bank rate will remain at 0.5% until 2016. It has said that the interest will rise to 0.75% once unemployment has reached 7%. It has indicated that this will happen in around 3 years. However the money markets feel recovery could happen in a shorter period of time, and are predicting rates could increase much sooner than 2016.

Should you listen to BoE prediction that interest rates will remain low for a further 3 years and go for a tracker mortgage, or should you listen to the money markets predicting rates will rise and lock into a fixed rate mortgage while cheap deals remain on offer?

It is a dilemma that many looking for a deal are currently facing. The choice between a fixed rate or tracker will depend on your individual circumstances and aversion to risk.

Independent advice is crucial if you want to make the right choice. A full review of all products on offer will help you find the deal which is right for your needs.

You may be familiar with fixed rate mortgages but not know much about trackers and other products such as offsets. If you would like to discuss mortgage options to work out which type of product would best suit your needs, you are advised to speak to a mortgage expert at independent broker Deal Direct.

We can review your circumstances to come up with a range of products for you to chose from, mortgages which are ideally suited to your needs. We can help you work out which type of deal would suit you best.

As we are independent we do not work on behalf or in the interest of lenders, our business is finding the right mortgage at the right rate for your needs.

Call an adviser on 0800 048 8828.

We offer impartial advice and a competitive quote.