Remortgage - Tracker or Fix?

sylblake

We are planning to pay off part of mortgage and remortgage approx £35,000 on a two year deal. Should we go for fix or tracker?

Joe_Bloggs

Why go for a two year deal and pay fees through your nose again in two years when you could go for a full term deal for the last time. How long would you want to pay off £35K ? Fees are critical in evaluating the effective interest rates of small mortgages.

J_B.

sylblake

Hoping to pay off mortgage completely in approx 2/3 years.

Joe_Bloggs

There may be fee free trackers available that could do the job in that time. The fixed market is very volatile and upwards whilst the trackers are based upon the Bank of England Rate and static for now. Can you say who are your existing lenders is and/or what have they offered you to retain your continued patronage.
J_B. ( Fees is the key )

sylblake

With Nationwide at present. Charges are £499 for either fix or tracker. Gives us the facility to overpay up to £500 per month. At present we are on standard rate 5.89%

Joe_Bloggs

I'm with them too. The £499 seems steep for what you require. There are other rates without reservation fees that are cheaper than the BMR rate that you are on. Some number crunching is required.
J_B.