Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • allisond
    • By allisond 10th Oct 17, 10:17 AM
    • 28Posts
    • 1Thanks
    allisond
    Should I ditch Lifetime Tracker for a 5yr Fixed Rate
    • #1
    • 10th Oct 17, 10:17 AM
    Should I ditch Lifetime Tracker for a 5yr Fixed Rate 10th Oct 17 at 10:17 AM

    Hi

    My husband and I have a lifetime tracker mortgage, which started at a rate of 1.49% then increased to 1.74% last September when BofE increased .25%. We still have about 10years left before we pay off the mortgage, possibly sooner.

    We don't plan on moving over the next 5 years, so we are wondering whether we would be better off getting a 5year fixed rate. Especially as the BofE is likely to increase very shortly. If it does then the rate of 1.99% would match the lowest 5yr fixed rate that we have seen, presuming it's still available!

    As if the rates increase again over the next 5yrs which I suspect they will, then we'll be paying more on the tracker than the fixed.

    Previously we have always benefitted by being on a tracker.

    Any advice on whether we should keep the tracker or move to a fixed rate would be appreciated.

    Many thanks
    Ally [/FONT]
Page 1
    • YHM
    • By YHM 10th Oct 17, 10:24 AM
    • 300 Posts
    • 97 Thanks
    YHM
    • #2
    • 10th Oct 17, 10:24 AM
    • #2
    • 10th Oct 17, 10:24 AM
    Morning Ally

    You are facing the same dilemma as a mountain of people currently remortgaging at present, as to whether the recent economic uncertainty should sway you into fixing for a longer period.

    This is purely down to your attitude to risk and preference for long-term stability over short-term flexibility. If you feel that in the next 5 years, nothing much will change, then yes, a long term fixed rate is a viable option. However, do remember, you will generally be tying yourself up for that period of time and this does mean if you want to upsize / downsize etc you may have to port your rate (at the discretion of your lender) or be liable for a hefty early repayment charge. There are lenders and rates out there that have more flexible options, ie 5 Year Fixed with no early repayment charges, however, these are generally a higher interest rate than fixed rates with charges.

    A good broker would present your options and discuss what is most important for you from a rate, before reviewing the market to find a viable option for you.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • Lucky Duck
    • By Lucky Duck 10th Oct 17, 12:13 PM
    • 125 Posts
    • 72 Thanks
    Lucky Duck
    • #3
    • 10th Oct 17, 12:13 PM
    • #3
    • 10th Oct 17, 12:13 PM
    My husband and I have a lifetime tracker mortgage, which started at a rate of 1.49% then increased to 1.74% last September when BofE increased .25%.[/FONT]
    Originally posted by allisond
    I don't understand this bit, the base rate hasn't been increased for 10 years or so.
    • sevenhills
    • By sevenhills 10th Oct 17, 12:38 PM
    • 757 Posts
    • 268 Thanks
    sevenhills
    • #4
    • 10th Oct 17, 12:38 PM
    • #4
    • 10th Oct 17, 12:38 PM
    The Bank of England’s Monetary Policy Committee, at its meeting ending on 13 September 2017, the MPC voted by a majority of 7-2 to maintain Bank Rate at 0.25%.

    • chelseablue
    • By chelseablue 10th Oct 17, 1:08 PM
    • 2,296 Posts
    • 2,822 Thanks
    chelseablue
    • #5
    • 10th Oct 17, 1:08 PM
    • #5
    • 10th Oct 17, 1:08 PM
    I've never had a tracker mortgage always a fixed rate.

    Personally, our 2 year fix ends in March and I'm wanting to do a 5 year fix.
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • allisond
    • By allisond 10th Oct 17, 1:55 PM
    • 28 Posts
    • 1 Thanks
    allisond
    • #6
    • 10th Oct 17, 1:55 PM
    • #6
    • 10th Oct 17, 1:55 PM
    Yes sorry that was a mistake Lucky Duck....I was meaning to say that it is 1.49% + BofE rate of .25% making it 1.74%
    • allisond
    • By allisond 10th Oct 17, 2:00 PM
    • 28 Posts
    • 1 Thanks
    allisond
    • #7
    • 10th Oct 17, 2:00 PM
    • #7
    • 10th Oct 17, 2:00 PM
    Thanks everyone for your comments, we don't mind risk and in light of what sevenhills has said - which I wasn't aware of - thank you.....we have decided to remain with our tracker.

    Thank you.

    Ally
    • YHM
    • By YHM 10th Oct 17, 3:05 PM
    • 300 Posts
    • 97 Thanks
    YHM
    • #8
    • 10th Oct 17, 3:05 PM
    • #8
    • 10th Oct 17, 3:05 PM
    Ally

    You are aware they meet every month right?
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

5,419Posts Today

4,613Users online

Martin's Twitter