Mortgages advice-Coventry tracker

doranick

Please bear with me , this is my first post:o
My husband and I are looking to buy a bigger house and need some advice on this subject.
Purchase price of house £266.000, looking to borrow £198.000
Our combined income is at £45.000, we have a small loan of around £2600 left to pay in 2 years and good credt scoring.
Our broker suggested to us to go with Coventry on a tracker till 2012,
rate 3.49% (bbr + 2.99% col cap) - total initial fees £1265.00
product is capped @ 4.99%
Monthly repayment would be £1044.42 or max £1.212.35 ( when rates go up)
Have not been told of any incentives
Would a 5 year fixed with Abbey at 4.89% be better?
\monthly repayment would be £1196.00

Any comments would be very much appreciated

_Andy_

A fixed would be more suitable if you need the security / stability it provides.

What did you tell your broker you wanted?

getmore4less

A capped rate is as good as a fix for stability as long as the rates a ok.

That's a hefty salary multiple at 4.4.

How does the broker get the 4.99% cap the Coventry web says this is for 65%LTV you are 74% so the cap would be 5.75%.
http://www.coventrybuildingsociety.co.uk/mortgages/schemesStandard.aspx

silvercar

A cap at 4.99 with a current rate of 3.49 looks better than a fix at 4.89.

What are the fees with Abbey?

Do either offer free valuations or any other attractions?

doranick

Thank you for the respones.

Andy : We have not mad up our mind, what way to go.

Getmore4less: Do not know were he gets his figures from, thanks for pointing it out, will keep my eye open.

We have not been told of any incentives, like free valuations or legal fee costs, should we ask ??

Another question: We had some money come in, should we pay of the loan early or get the mortage down, we could reduce by around £ 8000

Thank you all for your replays