We had a question from the community because they are in the unfortunate position where their fixed rate mortgage is about to expire. They are left with the classic choice between a known, fixed rate mortgage, or the currently cheaper tracker product which comes with the unknowns of market fluctuation and the risk of paying more than on the fixed rate.
So what would Mr White. do?
We put the question to Mr White. and this was his reply...
"It's a tough call right now. I think the market's pricing the risk correctly. Inflation could go higher or stay higher than expected. That means the BOE may have to panic and raise rates considerably to offset that scenario. That could cause banking problems (as we've seen already) which starts a proper stock market crash and rates fall off a cliff. On the other hand, to avoid that calamity, official rates slowly drift higher and the housing market conversely slowly grinds lower. Best bet is don't have a mortgage...
Personally I'd probably go with a tracker too if I had to"
- Mr White.
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