Which Mortgage to go for - less than 60% LTV

Treacle44

We currently have a £75K fixed mortgage on 5.99% which finsishes in February.

We are in the process of moving and new mortgage will be £140k on a £270 purchase.

Which rate would be the best to go for?

3 year fixed - 4.44% - £995 arrangement fee
5 year fixed - 5.75% - £995 arrangement fee
7 year fixed - 5.99% - £995 arrangement fee

All with the Halifax who we are with now.

Or would a tracker be worth looking into do you think?

Thanks

Cannon_Fodder

They seem like high figures for such a low LTV.

Have you done much shopping around? Maybe go see a broker.

Treacle44

We can't as we'd have to pay a £2.5k redemption fee (plus aren't they're conveyancing fees to port the mortgage to another lender?) to get out of the current mortgage we have with the Halifax.

anh1904

2.39% tracker is available, and a 2.89% tracker. Depends how determined you are to "fix" and your view on how long this slump will last. 3yrs might (just might) coincide with a period of high inflation and hence high (potentially much higher) rates, so you may want to think about the economic cycle and where it will be when your product ends.
All crystal ball gazing and depends on your attitude to risk, or your discipline if you decide to go for an offset.

Cannon_Fodder

Port in the cheapest possible fashion for the house move, probably tracker, and re-mortgage in February.

A 0.5% saving in rate, will save £3,500 over 5 years...

jem16

Co-op do a 5 year fixed at 4.99%, £995 fee or a capped tracker at 2.49% above base rate with 5.99% as its ceiling, £995 fee.

anh1904

First Direct do a 2.39% above base lifetime offset. Could do that until such time as a deal appears that you like the look of?

Treacle44

I've found out total costs to move from the Halifax, and they're almost £3.5K including conveyancers fees.

Worth it if the rate stays the same for the next few years but if it goes up it's going to be a long time before we even break even.

Treacle44

I'd be grateful for anymore advice please, we've really got to stay with the Halifax so it's got to be out of those offered in my first post.

Really appreciate all the other replies though, thanks.

anh1904

Your question is asking someone to crystal ball gaze for you (interest rate futures).

You have to take a view based on what is right for you, based on your outlook and risk profile.

The cheapest, 4.44% for 3 years, is 2% dearer than the co-op tracker (though you have the security of the fixed rate) but during the first months, you will be
£2800/12 (£233) worse off in terms of interest paid.
If you believe rates will stay low for the foreseeable, then you need 15 months at this reduced rate before you have made your 3500 fees back.

Only you know what is right for you, sorry.

Vayid

great post