End of tracker - Advice needed.

okciv

Hi,
Bought my house in July 2007 with a mortgage of about £110,000
We got a tracker on the advice of a broker.
Went from paying about £650 per month to now less than £400 per month as the rate has dropped so much.
My deal is due to run out soon & I'm wondering what happens now?

I'm assuming my payments will go up as no deal will be as low as my tracker is now? I'm dreading the replies....
Any help appreciated....

will-in-estoril

Would you supply a few more details needed so that you can get the most informed responses, please?

1. Who is your lender?
2. What is the tracking rate or margin?
3. How much (roughly) do you owe now?
4. How much (roughly) is your house worth now?
5. When does your deal end?

There are good deals to be had, depending on your circs!

dimbo61

Read the paperwork that came with the mortgage offer!
Does it say your mortgage will revert to the lenders SVR ( which is currently 6.59% IN JULY 2007 !!!! )
Check on there website what the current SVR is or just give the mortgage centre a call and they can tell you and inform you of what offers they have now for existing customers with your LTV

okciv

Current Mortgage is with Birmingham Midshires (Halifax) and is 0.65% below the base rate
No idea what my house is worth? Paid £157,000 for it in July 07 & the same size/kit houses are for sale in my street for around that same price now?
I'd guess I still owe around £100,000 (pure guess?)
My deal will end July 09 - not had the paperwork through yet but I'm sure it goes to 1.99% above base rate and still tracks it
This might still be a good deal? I have no idea?

snarffie

Your rate is pretty much guaranteed to go up, but if it moves over to 1.99% over base rate, you would still only be on a rate of 2.5%, which you won't beat anywhere else, and importantly, you won't be paying any arrangement/valuation/solicitor's fees to get the new rate (you'll need to confirm this yourself, of course).

Assuming the above is correct, you can safely say, that staying where you are is the best option for now.


However, medium/long term rates may go up, in fact you'd have to say the ONLY way is UP from BBE 0.5%, as there isn't really any more DOWN! With this in mind, you might want to keep an eye on offers from other lenders. I would not go with any two year deals, and the best five year fixed mortgages are around 4.5%, and you would have to pay additional fees.

Some words of warining: You say you bought your house for £157k a year ago. Of course, house prices have dropped considerably since then and you may not have the equity you think you have. If your house is valued at less than £136k 'ish, you Loan to Value will be touching 75% which means that the very best rates will be unavailable to you, so be aware.

Good luck, and don't panic!

dimbo61

Do you want security with your mortgage payments for the next 5 years ?
Are you planning on staying in the property for at least the next 5 years ?
IF you home is worth say £150,000 and you need a £100,000 mortgage you have a good choice of sub 4% deals from several lenders over 5 years
Putting in the above figures into " whatsthecost" gives you a monthly mortgage payment of £554 for the next 5 years at 3.99% on a term of 23 years.
Hsbc/A&L/woolwich all 3.95/3.99%

diable

I am in the same boat as I have been on the Halifax's SVR since March. I am just waiting to see what happens in April before I commit myself to a 5yr fixed deal. I want the security of knowing what my payments will be and I think I can start to overpay my mortgage by at £100 from October.

RobertoMoir

okciv wrote: »

Current Mortgage is with Birmingham Midshires (Halifax) and is 0.65% below the base rate
No idea what my house is worth? Paid £157,000 for it in July 07 & the same size/kit houses are for sale in my street for around that same price now?
I'd guess I still owe around £100,000 (pure guess?)
My deal will end July 09 - not had the paperwork through yet but I'm sure it goes to 1.99% above base rate and still tracks it
This might still be a good deal? I have no idea?

Without wanting to sound mean, don't you think you ought to find out the answers to these things? It's kinda important to what options are available and which ones you should pick.

beecher

Agree that you need to find out how much your mortgage is at the moment and how much your house would be valued at. If it is worth around £130,000 or so it makes a big difference - and it could well be valued as low, or even lower than this. If your LTV is high your choices are very different to someone with a low LTV.

Phone up your mortgage provider and ask how much is remaining on your mortgage and what they value your house at. Also ask what your deal goes onto.

okciv

RobertoMoir wrote: »

Without wanting to sound mean, don't you think you ought to find out the answers to these things? It's kinda important to what options are available and which ones you should pick.

Oh gee, do ya think? I never thought of that?
Isn't that why I'm on here 4 months before my current tracker ends looking to see what people think?
Of course I'll have all the answers before I make a decision. I'm looking for rough ideas here. :rolleyes:

Thanks everyone else

RobertoMoir

okciv wrote: »

Oh gee, do ya think? I never thought of that?
Isn't that why I'm on here 4 months before my current tracker ends looking to see what people think?
Of course I'll have all the answers before I make a decision. I'm looking for rough ideas here. :rolleyes:

Thanks everyone else

"everyone else" would be able to get you better answers if you asked and included that information.

If you hear a whooshing noise passing over your head, don't worry about it, that's just the point I was trying to make. I get the feeling that might happen to you a lot in life.