Tracker Vs. Variable Rate Mortgage

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I'm looking at switching my current variable rate mortgage to a tracker mortgage. The variable is 3.35 and the tacker is 3.05% with a guanatee that the Euribor spread is caped at 1.05% for the life of the mortgage.

I can see the short term benefit being the reduced interest rate but are there other long term / strategic consideration that I should be looking at.

There is no bank charge to change.

Thanks
 
Tracker rates would increase more or less immediately if base rates increased. There is a chance (although very unlikey) that lenders would not or would be slower to pass on rate increases to their variable rate customers.

Have you used the search facility and looked at the key posts? There are lots of threads on this issue.
 
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