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Mortgage choice - any advice, please?
Penny_Farthing_2
Posts: 502 Forumite
Hi
I know this probably boils down to how soon I think interest rates will rise, but here goes.
Fab tracker deal with Abbey is coming to an end in March. Will be looking for a deal on £150k. House is worth £350k +. Working on an interest only basis but paying in £1300+ a month so need the facility to do this without penalty. £38k endowments to be paid in in 2013. Looking at a 16 yr term but hoping to pay it off in 8.
The best deal from L and C is 3.89 fixed for 2 yrs with £712 for all fees involved.
I don't think rates are going to rise before the autumn and then I think they won't shoot up. My question is whether something like the HSBC lifetime tracker 2.09% above base rate with a £1029 fee (+225 if they have to send a valuer out) would be better. The up front fee is hefty but we could move from it at any time with no further penalty.
I'm reluctant to pay 3.89% if rates will be low and slow to climb.
Any thought please?
Thanks
I know this probably boils down to how soon I think interest rates will rise, but here goes.
Fab tracker deal with Abbey is coming to an end in March. Will be looking for a deal on £150k. House is worth £350k +. Working on an interest only basis but paying in £1300+ a month so need the facility to do this without penalty. £38k endowments to be paid in in 2013. Looking at a 16 yr term but hoping to pay it off in 8.
The best deal from L and C is 3.89 fixed for 2 yrs with £712 for all fees involved.
I don't think rates are going to rise before the autumn and then I think they won't shoot up. My question is whether something like the HSBC lifetime tracker 2.09% above base rate with a £1029 fee (+225 if they have to send a valuer out) would be better. The up front fee is hefty but we could move from it at any time with no further penalty.
I'm reluctant to pay 3.89% if rates will be low and slow to climb.
Any thought please?
Thanks
0
Comments
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loose does not rhyme with choose but lose does and is the word you meant to write.0
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Thanks Red Pete. At the moment, I'm favouring the tracker - mainly because I can leave it for a new deal immediately the rates start to rise.0
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Have you asked Abbey what they will offer?I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Good point Jill. We were with them a few deals ago, though, and their response was so poor we left. Worth a try though.0
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What's the follow on rate for your current tracker?0
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