would a new tracker be advisable at present?

virgin_moneysaver

coming off a fairly high fixed rate next month - we've been offered by the same lender:

2 yrs fixed 3.59% £199 a/f

or

2.49 abr tracker (so 2.99 at present) for 2 years a/f £199

has anyone any thoughts or advice?

payless

what follow on rate would you go on ( this maybe SVR or something else like a BofE tracker )

virgin_moneysaver

payless wrote: »

what follow on rate would you go on ( this maybe SVR or something else like a BofE tracker )

when we come off at end of Sept we go on SVR which is 4% at mo

& the new mortgage would go onto SVr whatever that maybe at the end of the 2 years

_Andy_

Does the tracker have any penalties if you exit early?

Joe_Bloggs

That two year fixed rate seems charitable. It should tide you over the General Election. Perhaps even the demise of the FSA and OFT. I have no choice but to ride my tracker until July 2010.
J_B.

virgin_moneysaver

_Andy_ wrote: »

Does the tracker have any penalties if you exit early?

yeah - 3% of the o/s bal nut this would be highly unlikely

virgin_moneysaver

Joe_Bloggs wrote: »

That two year fixed rate seems charitable. It should tide you over the General Election. Perhaps even the demise of the FSA and OFT. I have no choice but to ride my tracker until July 2010.
J_B.

I can't remember where I read it but someone did say that they suspect that when the base rate starts to go back up it could go up as rapidly as it fell which could be bad news for the tracker - but then I got stuck with this fixed rate when alot of peoples mortgage payments fell drastically

virgin_moneysaver

just a bump - wonder if payless is online today

yelf

persoanlly I think the savings you make initally by going on the tracker will match the extra you pay as you come to the end of the term. So net, you'd be paying the same over the 2yrs on both.

This is of course based on my views on interest rat moves, and I'll be dmaned if the BoE pushes them back up as fast

Thrugelmir

virgin_moneysaver wrote: »

coming off a fairly high fixed rate next month - we've been offered by the same lender:

2 yrs fixed 3.59% £199 a/f

or

2.49 abr tracker (so 2.99 at present) for 2 years a/f £199

has anyone any thoughts or advice?

Difference is so marginal I would take the fixed rate. If tracker was lot cheaper that would be the better option on 2 year deal. As BOE base rate will stay low for a while longer yet.

virgin_moneysaver

When you look at it, the base rate would only have to go to 1.5% for the fixed rate to be the better deal - would it reach that in the next 2 years? who knows

also if we do nothing we go on 4% at end of next month & it don't cost us anything - but again if the SVR moves upwards then the fixed rate would have been the better option

£199 arrangement fee - is that pretty reasonable these days - to me when its the same lender I don't see why we should pay