Tracker or Discount?
Options
angelak_3
Posts: 22 Forumite
I am looking for a new mortgage as my current deal is running out at the end of October. I am currently on a 1.5% discount deal withe C&G.
They have offered me a 1.35% discount for 2 years (i.e 5.4%), They also do a tracker mortgage (+0.64% above base rate for 4 years) so at 4.75 base rate (I think that's right but please let me know if it isn't) that's 5.39%. There are no tie ins or early repayment penalties (which I like) on either option.
As C&G seem to put up their rate as soon as there is a hike in interest rates it looks to me like the tracker is a better option as it runs for longer and with no penalties I can change it if something better comes along. Have I got that right or am I missing something?
I am really keen on the no tie-in and no penalty options. Are there any better deals around I should be looking at?
Cheers
Angela
They have offered me a 1.35% discount for 2 years (i.e 5.4%), They also do a tracker mortgage (+0.64% above base rate for 4 years) so at 4.75 base rate (I think that's right but please let me know if it isn't) that's 5.39%. There are no tie ins or early repayment penalties (which I like) on either option.
As C&G seem to put up their rate as soon as there is a hike in interest rates it looks to me like the tracker is a better option as it runs for longer and with no penalties I can change it if something better comes along. Have I got that right or am I missing something?
I am really keen on the no tie-in and no penalty options. Are there any better deals around I should be looking at?
Cheers
Angela
0
Comments
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It all depends on your LTV.. How much your house is worth, compared to how much you owe on the mortgage.
independent mortgage/financial adviser martin@hendersonponsford.com0 -
Hi
The house is worth around £299,000 ( 2 are currently for sale for that, the last one sold for £289,000), my current mortgage is £99,000 but I would like to remodel the kitchen so would like to increase that to about £110,000.
Angela0 -
Given a choice between those two I'd go for the tracker. While lenders are prompt raising interest rates as base rates go up they are noticably tardy in lowering then when base rates go down again.
However there may well be other mortgages cheaper. I suggest you go to a search site such as https://www.moneysupermarket.com and enter your requirements.
Note that most of the good deals require an upfront fee so don't get too blinded by the headline interest rates. And of course you need to beware tie ins if you want to avoid them. Personally I would suggest you accept tie ins to get the best deal as long as they do not exceed the period of benefits (eg a 2 year discount should not tie you in for more than 2 years) - but that's up to you.0 -
I live in East Sussex, Eastbourne to be exact. How can I go about finding a reliable mortgage broker to help me through this maze? Can anybody recommend one in my area?
Angela0 -
Hi Angela,
We bought our first house in Eastbourne through a really good broker.
It's my first post so I'm not sure whether I'm allowed to give you the details here though - let me know and I'll give you the contacts.
Tim0 -
Hi Tim
If you click on my name there is a facility to send a private message (not that I have ever done that before).............so hopefully I will be able to figure out how to retrieve it ???
Angela0 -
Just sent you a PM Angela - think you have to log in to get it.
Tim0
This discussion has been closed.
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