Stay with my long(ish) fix or jump ship to a tracker?

guli

Spangled wrote: »

Just to update on my "dilemma". Yesterday's 1.5% cut put the cat among the pigeons somewhat meaning my 5.5% fix now looks decidedly uncompetitive. So I went into HSBC today and reserved their +0.99% lifetime tracker which is, IMO, just about the best tracker deal out there. There's a £799 fee but I'll be saving almost £200 a month on my £160k mortgage so I'll recoup the outlay pretty quickly. And as I bank with HSBC, I'll be able to manage my mortgage online and make overpayments easily. I'm not convinced that tracker rates will radically improve in the New Year, hence my thinking about bagging this HSBC deal now...

Surely, leaving it to month 5 after you book the tracker deal before having a early repayment on your fix rate would mean there would be 5 months less of ERC to pay...

Spangled

Hi Guli — sorry, I probably wasn't clear. The £799 fee is the HSBC arrangement fee. I actually have no ERCs at all with my current Coventry fix (apart from a £125 exit fee). Cheers.