Any pointers out there would be gratefully received

bobskat

Hi - new to forums, but figured worth a shot in case we( hopefully ) get some useful pointers.
Basic story - we're mortgage free at the moment ( hence all the confusion now ) due to my husband and I meeting when we both had properties so sold both and bought current house outright. We've accepted an offer on ours and had offer accepted on the one we like. We've got to find a mortgage of £100,000, selling at 355 and buying at 425 but to include stamp duty and other moving costs. We'd like to start paying off the mortgage straight away, as opposed to interest only. The confusion lies with whether a fixed rate for 2/3 years is better or should we go with a tracker whilst the interest rate is so low? I've done my best to scroll through to see if there's anything similar and I've read the fixed vs tracker guide but still very unsure of what's a good route to go down. If anyone has any pointers, they would be gratefully received. Many thanks in advance

dimbo61

Have a look at first direct 3 years fixed offset or tracker deals !
I am not a mortgage adviser but have an offset mortgage which is fixed
Hope to be Mortgage Free asap
GOOD LUCK

dimbo61

If you can afford to ? reduce the term to less that 10/15 years as you will save a lot of interest!
Use " whatsthecost" website to work out the figures

unite79

Short term I would opt for a tracker, ie 2 -3 years - Longer than that I would look at 5 year fixed deals.

If the affordability is tight, ie you cant really bear a rise of say 3% then you should be looking at Fixed deals - Rates are aritfically low at the moment, and whilst they may continue for the short term - as sure as eggs are eggs they will GO UP, which in turn will make the trackers deals not as attractive as they appear today!

bobskat

Thank you for your replies - they're much appreciated. Speaking to hubby today I think he's of the view that we'd be best off with a fixed so we know where we stand each month. I shall go and have a look at the first direct website now. Thanks again

Mrs_Bumble

I think basically it comes down to the fact whether the monthly household budget can accommodate an increase rise potentially each month if it were to start creaping up?

If you opt for a fixed rate and know where you are you can still opt to overpay each month within the restrictions of the product each month, have a look at this calculator and see how even a little makes a difference

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

bobskat

Thanks Mrs Bumble - off to have a look at the link. Thanks for taking time to reply