Re: Fixed or Tracker Mortgage.

In message <1191008099.539704.228780@xxxxxxxxxxxxxxxxxxxxxxxxxxx>, whitely525@xxxxxxxxxxx writes
On 28 Sep, 19:29, John Boyle <j...@xxxxxxxxxxxxxxxxxxxxxx> wrote:
In message <1190991592.529138.172...@xxxxxxxxxxxxxxxxxxxxxxxxxxx>,
whitely...@xxxxxxxxxxx writes

>You know where you are with trackers.

Why is that?

Erm, because they 'track'...!

But they track an unknown variable.

With fixed rate you are always taking a bet, and will have a likely
need to remortgage periodically.

That sint necessarily a bad thing and selecting a tracker doesnt necessarily remove the benefits of re-mortgage.
Unless you go for 20+ year fix, which almost nobody does. To come out
on top you need to be beat the market over the mortgage lifetime.

Yes.

You are buying 'peace of mind' which is something I don't believe in,
or at least am extremely suspicious of when somebody trys to sell it
to me...

That depends on what rates you fix at.

With a tracker it is all so much more transparent.

Yep.
It's a bit like
having a contracter do some work on an 'open book' basis so you can
see their accounts.

You acknowledge they need to make some dosh,

Yep
but
you are safe knowing you are not being taken for a ride.

Nope. There are loads of 'trackers' out there with +ve margins but there are others with -ve margins. 'Trackers' per se are not good things, it is the rate you pay that matters.

I am not arguing in favour of fixed rates v trackers, merely asserting that you dont 'know where you are' with trackers, you just know that when something you cant control changes, so does your mortgage payment.
--
John Boyle
.