So on the table I have two options one with a fixed rate and one at a variable rate. There's a difference of over £100 between the two which makes it very tempting to go with the variable rate but its a fixed 3yr deal and who knows whats going to happen with interest rates in that time? Any thoughts? Suggestions? All much appreciated

Hi Sarah,

Without fully understanding your circumstances it is difficult to give you advice, but I can give you some general things to consider in making a decision.

The main question is are you willing to pay a premium for the certainty of a fixed rate, or would you prefer a cheaper rate that has an element of risk.

I would suggest you look at the tracker option, see what it will cost you now, and then do some calculations assuming a 1%, 2% & 3% rise in interest rates. If payments at this level would be uncomfortable, then perhaps the fixed rate is a better option, however if you would have no problems what so ever with the rate increases and you can afford the risk then it may be worth while considering the tracker. Ultimately the decision is yours, and as I said above, without conducting a full factfind I can't really advise.

On a side not, is this what your current lender is offering you? If so, havbe you shopped around? As there may be lower rates elsewhere.

I would suggest contacting an independent mortgage broker to see what alternatives are available before you make a decision.

i have a small £40'000 mortgage, which i would like to pay off in 10yr term. i was thinking of a 10yr fixed for peace of mind or a tracker and risk it going slowly ??