Moving From Fixed to Tracker, am I right?

handyman1970

Hello all, Im looking for advice about remortgaging, im currently paying 434 a month on my mortgage, it comprises of 2 loans, 1 at 11 year remaining fixed, at 4.99% for 11 years and 17 years on a 2nd secured loan of currently variable 4.24%, so overall im paying for the next 17 year, im looking to reduce my outgoings on a 25 year tracker, ive been offered at 2.49 above base rate for total term of 25 years, now I appreciate that the base rate will go up but I would hope it wouldnt go up by more than a couple of percent, I currently owe 54k in total, so is a tracker a good option, or stay fixed? thanks

Kavanne

well, if the BR goes back up to 5% on that tracker you'll be paying 7.49%... ouch!!

handyman1970

Thanks for reply, but then my current secured goes up from 4.24 to a higher rate as well.

puddy

i asked this the other day on the 'debate' forum. im on a fixed of 4.89, its 10 years and im 2.5 years into it. my eyes are on stalks at the 1.99 rates i keep seeing.

the general advice, which i think is right, is no. it would only take a slight increase in rates to wipe out any gains, taking into consideration the early redemption charge, fees, legals and survey

i wouldnt bother

Mrs_Bumble

Have a look at the history of the base rate

http://www.bankofengland.co.uk/statistics/rates/baserate.pdf

See where you think it will potentially even out at.

You have got terms of 11 years and 17 years so why would you switch to a 25 year tracker?

Can you afford to overpay on what you have got now and just reduce the interest and term that way?

Have you looked to see what even minimal overpayments would do

http://www.whatmortgage.co.uk/calculators/fleximortgage.html

The 4.99 is a good rate for 11 years.

_Andy_

How much would you be charged to exit from the fixed early?
And what fees would you be charged for the tracker you want?

handyman1970

Hi Mrs Bumble, was looking to reduce outgoings but after having a look at the link its unreal, paying 50 a month more saves me a good few years, decided to stay on current and try to pay off variable 17 year early, as your right, 11 year fixed at 4.99 is a winner, first time been on here but great site with great advice, many thanks all.

Mrs_Bumble

Surprising isn't it, glad it helped

Peelerfart

jenner wrote: »

i asked this the other day on the 'debate' forum. im on a fixed of 4.89, its 10 years and im 2.5 years into it. my eyes are on stalks at the 1.99 rates i keep seeing.

the general advice, which i think is right, is no. it would only take a slight increase in rates to wipe out any gains, taking into consideration the early redemption charge, fees, legals and survey

i wouldnt bother

Yup dead right , don't bother