Best Mortgage Offers

wirralite

Does anyone have any thoughts on Mortgage deals at the moment?

I was concidering a One Account at 3.75 %.
Then I got word of a Co-op tracker at base +2.49% for 3 years.

I have applied for the Co-op tracker.

But now I am concerned that I should cancel the offer an mortgage at a fixed rate. What is the general concensus? Tracker or Fixed?

opinions4u

Have you considered seeing a mortgage broker?

Nice people who ask you lots of questions to establish your circumstances.

From this they can then make a clear and concise recommendation as to what they think is best for you.

Everybody's an individual.

As for a one-liner on a message board? I personally prefer a longer term fix. But that's probably not right for over 50% of the people reading this.

wirralite

I have considered speaking to a broker, but I generally have as good an idea about the market than they do.

I dont look on the forums for financial advice, just opinions of people who have been there and done that.

I dont really think Circumstances come into it as much as people think. Personally, it is all about how much my mortgage costs me. ie. the more it costs me in interest, the worse the deal is.

A Fixed rate is good, but with interest rates on Fixes being about 4.5%, PLUS a fee, at the moment they are more expensive than trackers.

The co-op tracker is currently at 2.99%, with no fee. So I have 1.5% plus a bit to play with before I am at the same level as the best fixed deal.

I think I will stick with the tracker, but would still like to know the opinion of the populus.

Scaredy_Cat_3

It's tough to know what to do - and I'm posting here as much to ask advice as to give it! My fixed rate has just ended and I'm applying for a new mortgage now.

With the base rate being so low I thought it would be quite easy to find a low fixed rate, say around 3%, but I haven't managed it.

We've opted for fixed rates for quite a few years now, just so we can budget month to month. I am envious of those people on trackers who have seen their payments fall in recent months, but what worries me is if I take out a tracker now, it's going to work out around 3%, maybe 3.5%, and what happens when the rates inevitably increase?

I thought about taking out a 2 or 3 year tracker, but then that means I'm looking for another deal in 2 or 3 years and by then the rates will presumably be higher than they are now and it will be harder to find a low rate deal. Plus, I would have to pay yet another arrangement fee.

With this in mind I've opted for a 5 year fixed rate at just over 4%. I know it means I will be paying more for the next couple of years than I would if I took a tracker, but it also means that in 2 or 3 years, when rates are rising, at least mine will be fixed for a bit longer, on what isn't too bad a rate.

This is all guesswork. Personally, I am guessing that rates will rise in the next 2 to 3 years. Personally I prefer the stability of knowing what my monthly payment will be. Everyone has to make their own gamble about what rates will do.

So that's my feeling - but I'd be interested to know if someone can spot a fatal flaw in my reasoning.

robbiecaratiger

Hi Scaredy Cat

I'm with you. My 4.99% 2 year fixed rate ends soon & I'm fishing for the best deal. I'm hoping to fall just under the LTV of 75%. If that's the case, I'll be looking for the best 5,7 or even 10 year deal available. It's only a matter of WHEN the rates rise, not if, and I can't assume that my LTV isnt' going to increase in the meantime.

happybroker

10 years is a really long time robbiecaratiger (no prizes for guessing where your loyalties lie!) and scaredy cat your logic is pretty sound if you like stability in your budget.

Headline rates are always an easy sell (2.99% and the rest of it) but if you don't want to worry about future rises (and there surely can't be too many more cuts!) then the stability of a fixed rate could be a fair move.

Seeing as though you guys are a wee bit unsure I'm guessing, with the best possible inentions, you fall into this school of thinking.

All the best

robbiecaratiger

Thanks Happybroker

Yes, 10 years is a long time. But if I don't look for a good deal then its' fair to assume one won't come and fall into my lap. In reality 5 year fixed rate is preferred option but I'm worried my LTV might just exceed 75%.

happybroker

if it's only just (and I've asked this question a lot recently) could you find a way to make it 75%?

robbiecaratiger

Hi..

I know when my 2 year deal ends, I'll be needing £167,500. Am I right in saying though that it all surrounds the value of my property. Me, I value it at between £220,000 - £225,000 - but then again they probably won't take my word for it (which is fine, I don't want to deceive anybody).

If I re-mortgage do they do a drive-by, or come in & do a full valuation etc??

If I am just a shade over 75% LTV, then if the sums work out ok, I'd do what I could in terms of "over-payment" to fall into the 75% category.

happybroker

Not so many doing "drive by" vals these days though at 75% (?) lending surveyor may take a view for the sake of a couple of grand.

Try an opt for one with a free val to start with, if it's good then have a look and see if there are any better deals if you pay, you can ask if they will accept a "retype" of the good valuation. Current state of play would say not worth paying to me given the amount of borrowing but do your research.

robbiecaratiger

Thanks.. Much appreciated