Anybody beat this tracker ??????

LULULU1

First Direct are offering a off set base trackers at 1.89% plus Bank of England rate.

I`m advised this is the best there is. Does anybody know of anything better.

Many thanks

anselld

Went with them in Jan. Can recommend very highly indeed in terms of efficiency.
I was fortunate to get in at base + 1.49, 599 fee. Though I think in Nov it was even better (base + 1.29)
Even so it still seems a good rate now and I really like the flexibility of offsetting.

jayremoh

im in the middle of moving to them.

i only hopr that when boe starts to increase, they reduce their discount accordly then i can remortage to a decent rate.

dont wanna be paying +1.89% when boe hits 6% in a few years (if it ever does.)

dunstonh

Tracker plus 1.89% doesnt seem very attractive. It has short term gain, long term pain written all over it.

hearts

dunstonh wrote: »

Tracker plus 1.89% doesnt seem very attractive. It has short term gain, long term pain written all over it.

Agreed ;-)

HangTime

jayremoh wrote: »

im in the middle of moving to them.

i only hopr that when boe starts to increase, they reduce their discount accordly then i can remortage to a decent rate.

dont wanna be paying +1.89% when boe hits 6% in a few years (if it ever does.)

They'd be under no obligation to do so. I think the days of trackers very close to (or below) base rate are numbered, at least those without large arrangement fees. There's a whole host of people with very cheap mortgages at the moment (0-2%) who grabbed trackers a while back and they aren't earning the banks a great deal.

Personally I'd be quite wary of switching to a tracker unless the initial term is quite short. As a general rule of thumb, you want to be on a tracker if you think interest rates are likely to fall during the initial term. While there's a fair chance BOE interest rates could be cut again, there isn't really much room for them to fall a lot further. I'd also be surprised if the base rate wasn't higher in 2 years time than it is now (of course, that's just my opinion).

hellyboo_2

I think it depends on your circumstances. I am about to start my 0.99% offset tracker (got offer when rates about 5% just before all the shennanigans!). Quite low ltv though and hoping to pay off before 10 years.

I agree with short term gain long term pain as above, but if you are needing it for the short term then why not?

dannykos

HangTime wrote: »

There's a whole host of people with very cheap mortgages at the moment (0-2%) who grabbed trackers a while back and they aren't earning the banks a great deal.

that maybe so - but 51% (approx) of UK mortgages are fixed rate - most likely in the 4-7% range, so the banks can hardly complain about other deals with lower average rates, as I'm sure it evens out to be still 3-4% above base for them on average.

Wutang_2

don_robert wrote: »

its not that good of a deal when you consider your long term goals... :T

How random is that???

My long term goal is to go on a reasonably competitive tracker to start with and then hope for the best after the tie-in ends.

LULULU1

I started the thread and am now a bit confused and worried. To my understanding there is no tie in with this tracker and therefore I can leave at any time when the rates increase.

I undestand that I will have to pay more fees for a new mortgage, however there is a train of thought that says interest rates could stay low for years to come as they did in Japan. 20 years I think.

In the mean time I could overpay my mortgage due to the lower rate and benefit.

Is this logical.

Thanks

stuarthouse

Hi there

I phoned up & enquired about this today. its an offset


+ves

1. No tie no early redmpotion so can switch to better rate when required
2. No collar, so if BoE falls to 0 it will be 1.89%
3. 80% LTV
4. No money required to put into offset. So even if offseT balance is 0 will still get the 2.89%


-ves

1. £795 fee
2. 14 weeks wait max




We are on 4.99 fixed since 2006. If we include redemption, legal fees, set up charge, 2.89|% would make us break even in about year & half.
It would get us away from our current mortgage company who currently are not the besT.
If BoE falls its even more attractive.
BoE would need to rise to 3.5% for it to become unattractive, in which instance since this is a no tie in no ERP it would be easy to switch.