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People who have been on tracker mortgages

Journalist: Callum Mason, i

ended 22. March 2024

Ahead of the base rate decision today, I'm looking to speak to people who have been on a tracker/variable mortgage, hoping rates would come down quicker than they have done.

Have they now opted for a fix? Or are they still holding out in the hope of getting a better rate later this summer? For a piece in the i paper.

9 responses from the Newspage community

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Shaun Sturgess
Director at Sturgess Mortgage Solutions
I myself was on a tracker rate until just over a month ago, but rates did not come down anywhere near as quickly as what I had hoped. We started to see volatility and slight increases in the fixed rate market so I immediately jumped on to a 2-year fixed to save on my monthly costs. I have a number of clients asking a similar question at the moment, "is now the time to fix?" As with anything mortgage-related, it is down to their personal circumstances but I feel there isn't a right or wrong answer at the moment. Fixed rates are still increasing even as SWAP/SONIA rates decrease. The Bank of England is also tipped to hold the base rate steady again today, which might just be the final straw for some borrowers on trackers.
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Dariusz Karpowicz
Director at Albion Financial Advice
In the mortgage world, playing the waiting game with tracker rates is like hoping for a sunny day in London—it’s a bit of a gamble! Most folks I've seen didn’t pick a tracker hoping for a dip in rates. Instead, those on trackers often had eyes on a quick sale, dodging those pesky early repayment fees. When it comes to buying, stability is king. That's why snapping up a fixed rate is more like grabbing an umbrella on your way out—better safe than sorry. So, while the base rate dance keeps everyone on their toes, those seeking peace of mind are locking in fixed rates, not waiting for the weather to change.
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Dylan Kenney
Mortgage Broker at Henchurch Lane Financial Services
Certainly are seeing a fair few of my clients holding strong with their trackers with the mindset of "better days are coming", as the base rate has remained at 5.25% since August we've been keeping a keen eye on lender rate movements to advise clients where savings can be made. That being said, in a world of uncertainties there sure have been lots of clients who have opted to switch to a fixed rate where they value the peace of mind and stability even if for the next two years, higher than potential savings.
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Gary Bush
Financial Adviser at MortgageShop.com
Tracker surfers are out there and frequently communicating with us "Is now the time" when any news of lender decreases occur. Personally, I like an easy life and would tie into at least a 2 year fixed to allow for any nightmares that could come around the corner - 2024 has far too many elections globally and a 50/50 chance of a world war if you believe the French. If recommending a tracker rate to a client we recommend that one is taken with no redemption penalties to allow for an early exit and fix if something suitable came to market. We have EVERYTHING crossed for at least an 8 week downwards cycle from lenders of their fixed rates.
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Austyn Johnson
Founder at Mortgages For Actors
One of my clients in particular chose a variable product and although the rates have gone higher and higher, opted to stay on this due to having no ERC. They have said that it gives them the options when rates drop that should they want to jump off when they drop again, they can without issue.
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Lee Gathercole
Co-Founder at Rebus Financial Services
Scarliy some of my clients are standing still and waiting for rates to drop I am not enitrely sure this is the right decison. The decision today is very disappointing but expcted and is going to cause so many problems for many mortgage holders pariclaly those on tracker/varibale most of which are struggling to repay there mortgage.

I don't think many can wait much longer for rates to drop, I think they are all praying it is coming soon.

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Steven Neale
Director and Owner at SN Mortgages
I personally have B2L mortgages on tracker rates and although rents have increased, I need interest rates to come down to start balacing mortage payments to rental income. My dilema is how long can I wait? Or do I join the sinking B2L ship and sell?
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Akhil Mair
Director at Our Mortgage Broker
As a mortgage advisor, I understand the dilemma of choosing between a tracker/variable mortgage and fixing. It's crucial to weigh the potential savings against the risk of rates rising. While waiting for a base rate reduction starting in June is tempting, it's essential to assess individual financial circumstances and risk tolerance before making a decision.

As a mortgage borrower: I've been contemplating whether to switch from my tracker/variable mortgage to a fixed one, especially with the anticipation of base rate reductions starting in June. However, I've decided to hold off for now, aiming to secure a better rate later this summer. It's a calculated risk, but I believe it's worth waiting to see how the market evolves.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
As a resolute holder of a tracker mortgage things are looking a bit more positive. Yesterday for the first time in a long time, no one on the base rate committee was advocating to raise rates and rate cuts are looking very likely over the next few months. That could mean lower fixed rates on offer but also anyone on a tracker will benefit straight away.