The ongoing debate - fixed rate mortgage versus a tracker mortgage.

The debate as to whether lenders best fixed rate mortgage deals offer better value than tracker mortgage deals continues.

The Bank of England (BoE) base rate has remained unchanged for a 35th months and so some commentators say that now is a good time to arrange a tracker mortgage deal.

Some mortgage professionals would disagree and say that any rate that has spent so long at an historic low will, at some point, definitely to go up as it is impossible for it to go any other way. They feel that a BoE base rate increase will mean that many borrowers on lenders SVR deals would be forced to find a better rate.  

If you think that your finances could be stretched by an increased SVR rate then you probably should consider finding the best mortgage rate deal with a fixed term now. 

Economists are predicting that interest rates will almost certainly rise, however when this rise will happen is not clear. Borrowers are therefore being left with the dilemma of whether or not to fix.

Here at Deal Direct we figure if you can afford to take the risk then it's up to you - BUT if you can't afford to take the risk then why gamble. Just remember interest rates going up is simply a question of -  when they will go up, NOT IF they will go up.

Many believe an interest rate hike is not expected any time soon, experts predict that it is quite possible that the BoE could keep its rate down at 0.5 per cent to 2014. With interest rates looking to stay low for a further 2 years, a 2 year tracker mortgage looks sensible to some. Others advise that borrowers should consider sticking with lenders SVRs until base rate forecasts predict an imminent rise, they should then switch to fixed rate deal.

The one flaw in the plan of sticking with an SVR is that while lenders offer their best fixed rate mortgage deals now, when a base rate rise happens these competitive deals may disappear in days - if not faster than that!

For those unsure of what to do, they could consider one of the new hybrid fixed / tracker deals offered by lenders such as the Woolwich.