Which mortgage deal?

Giraffeseeker

Hi all,

I've got a mortgage approved with the Co-operative bank and the survey is paid for and being done this week. I'm now wondering if I have made a mistake with the deal I have gone for and want advice before it's too late!

I've gone for a tracker for 3 years at 2.49% above base rate. There are no fees to pay. The other option is a 3 year fixed at 5.09%, also no fees.

What would you do? Repayments on the tracker are £442 at the moment. I was planning on overpaying, say by around £150. Would I be better with the fixed which is £569 a month?

Thanks!

happybroker

what's the loan to value?

what's worrying you? Are you concerned that rates are going to rise over the next 3 years and what do you think they will go to? If they did go to this level (and add a bit extra on for good luck) would this impact significantly on the affordability of the mortgage and your lifestyle?

If so then a fixed could be for you, if not then don't worry so much maybe.

Giraffeseeker

LTV is 60%. I'm concerned about the rates going up, that's why I thought I'd overpay right away, to get used to higher repayments. I currently pay £665 in rent and wouldn't want to end up paying alot more.

TEDDYRUKSPIN

Strange person. You have actually answered your own question. You have already told yourself that you are worried about the interest rates going up overtime and hence your monthly repayments going up. Therefore, why have you chosen a variable rate?

Next you said, ' I would like to overpay by an additional £150 per month '

Could'nt you have chosen a fixed rate but shorten the term to equate to £442+£150 ish £592????

PS. You have an excellent LTV of 60%. That 3 years fixed is completely rubbish!!!!

TEDDYRUKSPIN

Give you a guide:

3yrs fixed 3.99% £599 booking fee HSBC.
3yrs fixed 4.35% £495 booking fee Halifax
3yrs fixed 4.15% £599 arrangement fee Postoffice

etc etc.

I am not telling you to get any of these rates. I am not advising at all. I am just giving you a guideline on roughly what similar rates are about.

dimbo61

How much would the co-op 5 year fix at 4.69% cost you each month ?
Use "whatsthecost" to work it out ( we dont know your mortgage amount!)
It has a £999 fee but it is a better rate and gives you long term security for the next 5 years ( check if its portable )
The coop also do a 10 year fix at 4.99% fee £999 real long term security but that depends on how long you want to live at the property.
Check the ERC fees carefully and what overpayments allowed GOOD LUCK

JayneG

"The coop also do a 10 year fix at 4.99% fee £999 real long term security but that depends on how long you want to live at the property."

Hi there,

Does anyone know whether the co-op will lend at 85% ltv on new builds? They also do a 10 yr fix @ 5.99 for ltv up to 85% which I might like to apply for myself.

(Just tried to call them but offices closed for now)