Fixed rate mortgages versus trackers. Which to choose?

 For the last several months fixed rate mortgages have fallen significantly in cost, which has made them highly competitive against trackers.

Tracker mortgages come with an element of risk which was worth it for those wanting to very lowest rates. However since fixed mortgage rates have become cheaper, the decision as to which type of mortgage to choose is not so clear cut.

It is no longer necessary to take a risk for a lower rate, and so fixed rate mortgages have dramatically increased in popularity. At present over 80% of all new mortgages are for fixed rate products.

To work out whether a tracker or fixed rate deal would be most appropriate for your circumstances, and to get a low rate quote, contact a Deal Direct adviser.

Economists are predicting that the Bank rate could increase any time from 2015 to 2016, which is something to consider if you opt for a tracker mortgage. As trackers are pegged to the base rate when it increases so will your mortgage rate and monthly payments.

This in mind it may be worth considering a lifetime tracker mortgage, rates for this type of product start from 2.38%.

If the prospect of rising rates is too much of a concern for you, could consider a fixed rate mortgage. With a possible base rate rise in a couple of years a 5 or 10 year deal might be the answer.

Rates for a longer term fix have come down in price, and lenders such as the Chelsea BS, Abbey and the Woolwich have some really great deals offered through Deal Direct. Some of these deals are 'exclusive' products and not advertised by the lender anywhere on line, you'll therefore need to speak to an adviser to get a quote.

With so many mortgages on offer a thorough market review through an independent broker is a must.

For advice to help you work out which mortgage would suit you best, call 0800 048 8828.