Interest rate estimates - are trackers really good value?

lisyloo

I have no idea what's going to happen but I opted for a 10 year fix.
The downside is that I might end up paying a bit extra when compared with a tracker.
The upside is that I'm completely safe that my repayments will not shoot up.
It really is impossible to know so I've gone for the safe option.
I shouldn't end up paying massively more because if that happens we simply pay the penalties to get out but I think that's an unliekly scenario.
Personally I think lending rates will rise or stay level, regardless of what the BOE does.
The cost of lending has gone UP for various reasons (sub prime crises etc.)

curlyboy

the root of all evil u got a good deal all fixed rates are dissapearing daily, im sh!!ting myself trying to find a deal ive found a hsbc discount tracker @ 5.69 with a fee of £249.00 but im really afraid after reading a lot of stuff over the weekend and threads thats things are going to go through the roof and trackers going up if the trackers rise 3 times takes it up to nearly 6.40 ....ummm its hard at the moment

I think i will call First direct there 10 fixed rate @ 6.19 seems to all thats left with a fee of £1,098

if any one else has found ay other fixed rate deals today drop me an email im getting desparate as my fixed rate end 30th Sept this year

good luck all

lisyloo

with a fee of £1,098

I'm not sure you are right about that (unless you are including your lenders own exit fee).
I think the FD fees are lower than that.

curlyboy

http://www.moneyfacts.co.uk/mortgages/bestbuys/5-year-fixed-rates.aspx

sorry a fee of £798 FIXED FOR 10 YEARS first direct

if u can find me a better fixed rate please post on this thread thanks guys
im desparate !!!!!!!!!!!!!!!!!!!!!!!!!!!!

please please

mikeyknight

Whether to fix or track is one of the biggest questions out there at the moment. It really comes down to your own situation and attitude to risk - no-one has a crystal ball unfortunately, not even the BOE or Chancellor (see Zikniks excellent contribution). If you can afford to pay more than the current rate then go for a tracker, if not a fixed is the most appropriate route. I was going to suggest a capped product to get the best of both worlds but can only see the Marsden with any products. Fees are also high at the moment but fee free deal rates tend to negate any savings made not paying said fees.

curlyboy

i cannot afford more than 3 BOE rate rises and the tracker is for 2 years at least at 6.19 i have peace of mind allthough im paying a bit ectra

mikeyknight

I think you've summed it up nicely - any more than 3 base rate rises and it's a massive problem. Peace of mind is worth more than money in my opinion. I always say to my clients if you fear sleepless nights more than potentially losing money then go for the secure option. Maybe you'll kick yourself at the end of the fixed rate but at least you've made an informed decision which is right for you now.

The rate you've found with First Direct with the level of fee stated appears to be competitive.

curlyboy

mikey knighht thanks sir, do u know of any other fioxed rate deals i agree first d, is competitve and i have peace of mind

lisyloo

Bear in mind that First Direct are very good on the other fees e.g. no legal fees and valuation fee is £99.
Fuether more you can offset and/or overpay as much as you like so the flexibility is very good.

I think they are a very good company and it's a competitive deal.

If you want to check out others then use the search engines and consult a broker but don't hang around for too long.
If you ask for it then it will be reserved for 4 days.
Then you need to pay £399 then it will be reserved for you even if they withdraw the product of put it up.

Also they told me that if they decline a mortgage when you move house then they won't charge the early redemption penalties, so I am confident they are a company with excellent service.

No connection (but chose them myself recently).

No-one can tell you whether you'll be better off fixed or tracker for the next 10 years, but you will have secured yourself against rises and no fees to pay for 10 years with great flexibility.
I don't think you will find much better to be honest, but I would advise you to check out search engines and brokers ASAP to satisfy yourself that you are making the correct choice.

curlyboy

f.direct fee of £798 can they add it to the mortgage or have i got to pay it up front ???? im looking at there 6.29% fixed for 5 years thats an option as welll I will call them later im going to opt for a fixed either the 5 or 10 year with FD unless something else comes on the market in next 7 days