Timing worked really well for us. Finished a 5 year term just before the larger rate rises. Broker was telling me to ride it out with a tracker and the inflation/interest rises will be short lived.
Nah, got a 10 year fixed rate at a rate that is around half the current BOE base. He just couldn’t understand that we’re fine with 10 years at a rate that might be even double the rate banks offer in say 2-3 years. Because we can afford it fine. The risk is low with the fixed rate, whereas the risk of a tracker/standard mortgage almost has to upper limit.
Also, if the rate actually came down to half our fixed rate it would potentially be worth the penalty to exit early. It’s still kinda win/win in the UK, but timing can screw you over.
Timing worked really well for us. Finished a 5 year term just before the larger rate rises. Broker was telling me to ride it out with a tracker and the inflation/interest rises will be short lived.
Nah, got a 10 year fixed rate at a rate that is around half the current BOE base. He just couldn’t understand that we’re fine with 10 years at a rate that might be even double the rate banks offer in say 2-3 years. Because we can afford it fine. The risk is low with the fixed rate, whereas the risk of a tracker/standard mortgage almost has to upper limit.
Also, if the rate actually came down to half our fixed rate it would potentially be worth the penalty to exit early. It’s still kinda win/win in the UK, but timing can screw you over.