Fixed rate mortgage or tracker rate mortgage?

Question

for first time buyers- what is better- fixed or tracker? (we are ready to put down 5% deposit)

Answer 1

tracker

Answer 2

Tracker - depending on who you listen to interest rates may go up 0.5% or down 0.5% in the next 6 months to a year.  

I would say tracker overall but it depends on your personal circumstances, fixed are not competitive at the moment but the point about them is that you know what you are dealing with.  Therefore if you have high outgoings and can't risk interest rates going up 2 or 3 % for instance, then you may want a fixed for re-assurance.  However, if you have average or low outgoings then I would certainly think it should be a tracker.

Answer 3

Tracker rate mortgage and renegotiate if necessary in a few years time.

Nationwide is having a very good offer for first time buyers:

3 year tracker: 5.74%

http://www.financecomparator.co.uk/mortg...