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simple really - take a fixed deal with same provider and save a little plus get a £400 sweetener or drop onto their base rate mortgage and save 25% on our current payments? Comes down to what people think will happen to interest rates in the next 3 years really. We pay interest and capital.
We'd be saving nearly £3k a year if rates stay as they are, which is a substantial 'escape fund' pot.
Drop onto base rate! The only reason I re mortgaged was to release some equity for further improvements! Interest rates will not move for at least 18 months in my limited knowledge opinion!!!
Yeh, we've just done the same - newer mortgages don't allow for dropping down to BoE plus x though, they use a different definition of base
we also clarified with bank that if we EVER move from the current standard rate well lose the option to drop back to it and would revert to the newer definition at the end. So be careful about sweeteners and be sure what terms you're on
Economic growth in the UK for the next 5 years or so is going to be anaemic at best and as a result interest rates are going to be pretty low as well.
I would stay on the tracker rather than move to a fixed rate.