There is no right answer.
It all depends on your attitude to risk.
No one knows what will happen in the next week never mind the next few years
Beeboo correct summarises that the sentiment is towards lower rates - pretty likely for the short term but anything could happen...In an ideal world, you would like to be able to take advantage of the low rates yet be insulated against the higher ones - but that not easy to do.
If you can get a tracker with say .5 above BoE base with overpayment facility, minimal set up charges and importanatly, low/ no penalties for early repayment ( i.e. you remortage with someone else ), then this is obviously the best of both worlds and although you will be open at the higer end to rises, you will alos take advantage of the rate cuts
A fixed would let you budget for the fixed period irrespective of market conditions. again, an early opt out provision and low/ no escape fees would be great so if things did dip, you could bail out and remortage on a floater to take advantage of lower rates
The best scenario would be to tart yourself about to get thje best deal whenever you need to - rather like Utilities supply at the minute
*personally*
When I piled into property, I was skint and knew it was going to be tight, so went for a fixed 2 year deal so at least I would know where I was all the time. As it happened, rates increased soon after, so I was hypothetical quids in, but could equally have been a hypothetical loser should rates have dropped
try to build your own risk profile into your decison, if that doesntn sound too wanky
It all depends on your attitude to risk.
No one knows what will happen in the next week never mind the next few years
Beeboo correct summarises that the sentiment is towards lower rates - pretty likely for the short term but anything could happen...In an ideal world, you would like to be able to take advantage of the low rates yet be insulated against the higher ones - but that not easy to do.
If you can get a tracker with say .5 above BoE base with overpayment facility, minimal set up charges and importanatly, low/ no penalties for early repayment ( i.e. you remortage with someone else ), then this is obviously the best of both worlds and although you will be open at the higer end to rises, you will alos take advantage of the rate cuts
A fixed would let you budget for the fixed period irrespective of market conditions. again, an early opt out provision and low/ no escape fees would be great so if things did dip, you could bail out and remortage on a floater to take advantage of lower rates
The best scenario would be to tart yourself about to get thje best deal whenever you need to - rather like Utilities supply at the minute
*personally*
When I piled into property, I was skint and knew it was going to be tight, so went for a fixed 2 year deal so at least I would know where I was all the time. As it happened, rates increased soon after, so I was hypothetical quids in, but could equally have been a hypothetical loser should rates have dropped
try to build your own risk profile into your decison, if that doesntn sound too wanky
