Best fixed rate mortgage versus the best tracker mortgage.
The debate as to whether lenders best fixed rate mortgage deals offer better value than tracker mortgage deals continues.
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.
The Bank of England base rate has remained unchanged for a 35th month and so some commentators say that now is a good time to arrange a tracker mortgage deal.
Deal Direct can help you get the best tracker mortgage deal available in the UK today.
Others however disagreed and say that any rate that has spent so long at an historic low, will 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 those borrowers on lenders SVR deals should consider a best fixed rate mortgage deal a wise option.
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.
However, 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.
However, the one flaw in this plan is that while lenders best fixed rate mortgage deals look competitive now, when a base rate rise happens such competitive deals may no longer be available. For those unsure of what to do, they could consider one of the new hybrid fixed / tracker dealers offered by lenders such as the Woolwich.
