Best Fixed Rate and Tracker deals at the moment?

supersunshine

Hi

Sorry it this has already been asked.

Our tracker deal is due to finish soon so I am on the look out for the best deals around. I am pondering on tracker but from reading the forum am now not so sure. I am also looking at fixed rates or offset mortgages. Had a nose at some on the net but was shocked by the £900+ arrangement fees on some - surely this outweights any savings made?

We are lucky that we have been able to pay off a few chunks of mortgage whilst the rates have been so low so would only need 50% LTV or lower. We only have about 9 years left on our current mortgage (after being inspired to get rid of as much mortgage as possible on here - thanks :-)) and would love to reduce it further.

Any tips would be gratefully received.

Thanks a lot

JAWS8

Hi,
I think it is better going for a fixed rate deal as you have done well to get the LTV down to 50% so why gamble with rates. It might be a year or two away but hyper inflation is coming to us all and if you have set a fixed lowish rate then you can either make the 10% overpayments each year or save it and watch it grow as the rates go up and up! The Post Office are doing a 5yr deal at 4.15%, looks about the best out there at the moment

supersunshine

Thanks JAWS8, didn't realise the post office did mortgages. Yeah did well, bought at the right time and did the property up so it is worth way more than we bought it for.

Has anyone tried one of those offset mortgages? Have a bit in savings which i am tempted to use to pay off more mortgage but like to have it there just in case.

luckyfool

You can get true offset, or go with a more traditional mortgage with overpayment flexibility.

The 2nd type tends to mean you cannot reaccess the money as easily, though there are lenders that allow you to get the money back relatively easily and at the product rate.
---

Post Office mortgages are effectively rebadged ones offered by Bank of Ireland.

dimbo61

Check Martins worries about Bank of Ireland !!!
Most 5 year fixes charge £999 fees or close too
Hsbc/A&L do 3.99% 5 year fix 60% LTV
I have an offset mortgage which has been very good for me over the last few years ( fixed for 5 years with YBS )
Could you afford to reduce term to say 7 years and overpay by 10% each year so that mortgage is finished at end of the 5 year fix ??

pip27

the hsbc one has stopped. i spoke to them today and they only offer a 3 year fixed at 3.99 now. good but not so good.

supersunshine

Cheers everyone. The offset mortgages look good and if I could get one where I could overpay aswell that would be great. Like your thinking Dimbo - will look into that idea re paying off by the end of a 5 year rate - that would be fantastic as, as everyone knows, mortgages are like a noose round your neck sometimes and the sooner I get rid of mine the better :j

Just seen that Woolwich do an offset tracker which sounds good, I am sure I saw one somewhere which was similar but also had a capped rate on it which would be even better.

Any more ideas greatfully received as you can never have too much info when it comes to new products out there when changing mortgages.

Thanks again.

trynsave

You really have to go to a comparison website and play with some numbers to find the deal that best suits your personal circumstances. My site of choice is Tesco Compare as it is managed by L&C and is really easy to use, but others have their favourites.

Like you said in your original post there are many factors to consider, set up charges included.

For a rough example I plugged in £100K value, £50K mtge giving a LTV 50%. I selected 5 yr fxd deals with low upfront costs.

4.15% Post office vs. 5.39% Northern Rock
With higher added costs such as arrangement, valuation & legal fees & exit fee on the Post Office, despite the more appealing rate it worked out to only be £30pm more than NR (£555 vs £584)

Add to this NR having daily interest and not mthly, and unlimited overpayments/underpayments/payment hols/borrow-back as opposed to 10% overpayments with PO - I urge you to consider that higher rates may actually be more attractive than you might give them credit for. If you are actually able to overpay more than 10% and pay your mtge off quicker you may well recoup the extra £30 pm over the longer term.

Obviously I don't have your numbers to play with so the above is just an example, and I am no expert like many others on here, but just consider all possible scenarios before making an INFORMED decision.

samnorris2

trynsave - thanks for your insight.. I've been rustling through search sites and keep coming up with the Post Office as the best option. Thing is they do have quite high rates.

I'm with Nationwide just now and the term runs out in August. Looking at their offers they have 4.98% rate with a £299 fee based on a 60% LTV

I'll now add NR to the review list. I've got a while to complete my analysis but you've got me thinking beyond the Post Office now..
cheers

supersunshine

Thanks trynsave - i did that sort of calculation last time or sorted out a new deal and is remarkable how the higher rates can save you more than the lower ones when you add the fees etc into the equation. The post office one was off my list in the end due to them only offering fixed rate mortgages and the fact that they do no pay legal fees etc on the best rate offered.

Samnorris - your ltv is the same as mine - Leeds do a 5 year fixed at 4.75 with £199 fee that would beat Nationwides :-) not sure if interest is monthly or daily or the other ins and outs of it but worth a look at.

dimbo61

what happens to your mortgage at the end of the tracker it does not go onto the BMR at 2.50% does it ?
Wait and see what Nationwide offers you as a new deal
And if you can overpay !