SVR or new tracker

degsykelly

Hi, our 2 year tracker rate is about to expire and we have been advised by an independent broker that we should move to a new tracker. However if we stay where we are now (Halifax) and go on to the standard variable rate, this is currently significantly lower than the rate the broker is recommending we move to.

What I don't understand is what we can gain by moving? Are we not better off just staying put on the standard variable rate as any interest rate rises will affect both options anyway?

Any advice/thoughts gratefully received.

opinions4u

What new tracker was the broker suggesting?

Halifax SVR tracks at no more than 3% above BofE base rate.

It's possible that he's suggesting something cheaper, but I doubt it would be much cheaper.

It's a fair question to ask. Don't change unless you can see the benefits.

MarkyMarkD

It's hard to see the merit of what the broker is suggesting. It sounds like the only winner out of the deal will be him. Bear in mind, too, that on SVR you are fully flexible, which will not necessarily be the case on any new deal.

degsykelly

Thanks guys, useful advice, especially the bit about Halifax SVR tracking the BofE rate.

Cheers

northerner79

Without being cyncial the broker gets no fee if you don't tie in to a new product!! Wonder why he wants you to move to a new product instead of staying on the best rate for you, well it's not the best rate for him/her!!

dominicnp

If you have an existing halifax mortgage they have the following tracker available (for 0-75% LTV):

early repayment
charge fee ltv
2.84% until 31st October 2012
+2.34%3.50% for the remainder of the mortgage term3.4% APR3% to 31/10/2010 2% to 31/10//2012
£7990 - 75

They also have other trackers and discounted deals available if you go onto their website, click on the mortgages link and then on "deal coming to an end".

Our mortgage is up soon and I was considering the above...

dominicnp

sorry - copied the table from the halifax site and it hasnt come out right.

Basically it is a tracker that would currently be 2.84%. the deal is over 3 years, has a fee of £799 and a LTV ratio of 0-75 is needed.

but more details on the halifax site!