Fixing part of mortgage-what rate the balance?

[Delboy]

I'm thinking of fixing part of my mortgage(I don't want to fix it all mainly to allow flexability in making once-off payments on the balance that is left at variable).

I'm on a tracker at present- 1% above ECB -so after today my rate is 3.75%. I can get a 5 year fixed for 4.3% APR (in effect this is just a diff of 3 x 0.25% rises and a lot of people think we could have these 3 rates by next spring, so I reckon this is a good deal).

Anyways my question is....if I fix say, 80%, will I lose my tracker rate on the balance and revert to the Std Variable Rate (which is .5% higher than the tracker)? The balance left variable will be outside the criteria to qualify for the Tracker I'm on now.

I'll ring the bank on this but just thought someone heere might know straight out.

Also, any opinions on the fixed rate I'm getting and the wisdom of switching to it.
Thanks

 

[Sunny]

There seems to be an awful lot of people jumping on the fixed mortgages bandwagon which I suppose is to be expected when the papers are full of news about the ECB and rate rises.
My personal opinion is that people should only fix if they think they will struggle with the repayments should rates rise over the fixed rate. There is no point looking at it from the point of view of beating tracker or variable rates. Remember trackers only pass on the increase when it happens. Fixed rates have factored in the increases expected over the next year and you will be paying it from now.

 

[ClubMan]

Totally agree with Sunny. I have posted many times in the same vein including a couple today which you should be able to find by browsing this forum.

 

[dam099]

I'm on a tracker at present- 1% above ECB -so after today my rate is 3.75%. I can get a 5 year fixed for 4.3% APR (in effect this is just a diff of 3 x 0.25% rises and a lot of people think we could have these 3 rates by next spring, so I reckon this is a good deal).

What is the nominal rate for the 5 year fixed? While the APR is designed to give consumers standardised information on rates (which is generally a good thing) in the case of fixed rates I feel it distorts things a little as it is a combination of the fixed rate for your fixed term combined with the variable rate for the rest of the term. This generally tends to make the APR for a fixed rate lower than the nominal rate you will actually be paying for the next 5 years.