Is this a good deal?

Turin_Turambar

I went to see the financial advisor in the estate agents tonight.
I have a deposit of £40k and am looking at getting a mortgage of either £50-60k.
She said the Halifax will do me a mortgage over 20 years at 3.64%, paying back at either £300-350 pm.

Its a tracker and I have to pay £499 arrangement fee, and she said would I want over 3 - 5 years


Is this a good deal?

Thanks in advance

TEDDYRUKSPIN

HSBC or First direct have the best term trackers at the moment

_Andy_

Turin_Turambar wrote: »

She said the Halifax will do me a mortgage over 20 years at 3.64%, paying back at either £300-350 pm.

Remember that it isn't '20 years at 3.64%' as it's a tracker which will vary. I.e. you need to factor in price rises in to your decision.

Turin_Turambar

Ok, so is this a good deal for 5 years, including paying £500 for the arrangement fee?

Scaredy_Cat_3

You need to decide whether you personally believe interest rates will increase over the next 5 years. If they do, then your mortgage will increase, too.

It's your decision, based on your own circumstances. Personally I prefer the stability of a fixed rate. There are some 5 year fixed rates available at just over 4%.

Is there a tie in on this tracker deal? If there is, then you need to be sure you can afford any interest rises over the next 5 years. If there is no tie in, you could take the deal and then jump ship if rates start to rise.