New tracker mortgage and the "end of the recession"!

barnishroader

I have just completed with a new mortgage provider, Woolwich, with a tracker rate.
I have yet to pay my first instalment as it isn't due yet.
With the apparent "end of the recession!" how likely is it that interest rates are going to go up and is it too late to pull out of the deal?
My tie in is £999 for the first 3 years and my new payment is over £100 less than what i had been paying with my last deal, but if the interest rates goes up, then obviously my payments will.
Not sure whether it would be worth seeking a new fixed deal and including the 999 into the amount or just to sit tight and see how it plans out.
I would be happy enough with my current deal so long as it doesn't go up above what i was previously paying so does anyone know how much the rate will have to go up to increase payments by £100 on a £100k mortgage?

Also where is the best place to go to check what deals are out there?
I used to use a site called mform which was great but it looks like its gone now.

VIGILANT22

So if base rate was to rise by 1% what increase would that mean to you in monetary terms?

barnishroader

yeah thats part of what i am asking?

Peelerfart

So we'd need to know how much your mortgage is for and how long it's over .

Oh and the percentage rate over the BofE rate you've agreed to as well

Thrugelmir

Base rates don't move on reported GDP figures.

The BOE's primary objective is to control inflation in the region of 2% per annum.

barnishroader

ah right....my deal is
it is a lifetime tracker with a 2 year tie in at 2.79% over the Base Rate.
Not sure whether this means it is just the Woolwich base rate or BOE rate or whether there is a difference!!
it is for 99279 over 30 years.

wodgerdodger

From what you said initially It appears just all a bit too late to do anything as you have already completed!!!!

Any alteration now is going to cost you a penalty and set up costs on any other deal you think will suit. The penalty you quote of £999 on almost 100K is already 1% (.5% over the 2 years) before you look at the costs of trying to switch again.
Does sound like you didnt really think through you situation in anything like enough detail, did you do it off your own back or via a Broker or direct with the Lender?

beecher2

So are you paying £434 at the moment? I calculate that every 1% increase equates to £50 extra, so you'll be paying an extra £100 when base rates hit 2.5%. If and when base rates hit what's considered the 'norm' of 5% you'd be paying £225 more.

Check for yourself at

http://www.moneymadeclear.fsa.gov.uk/home.html

and try to overpay the £100, plus anything else you can to protect yourself.

wodgerdodger

Thats correct, or pretty close, on the assumption that OP is on repayment basis; difference is nearer £83 per month per 1% increase if on Interest Only

barnishroader

it is a repayment mortgage and was set up by an advisor who assured me this was the best deal.
on previous mortgages i had set them up myself as i was able to source the best deals using mform.
plus there was a financial advisor at my last place of work who didn't mind me using his mortgage software!!
I note above that beecher2 says "when base rates hit 2.5%", but this may not happen for a while unless you know something, and also how likely is it that they will hit 5% soon.
my last mortgage deal had me paying approx 580pm so i feel anything below that is acceptable.
i had looked at the moneyfacts website and there were offers for a fixed mortgage at
Melton Mowbray BS3.25%
Fixed31/03/201275%Arrangement £599, Booking £399To 31/03/2012
first direct
3.29%
Fixed2 years75%Booking £499, Arrangement £4991st 2 yrs

I just wondered would it be in my interest to pay the 999 fee and get out of my deal to sign up to one of these or should i just sit it out for a few months and see if the base rate rises.

flammable999

sorry to sort of interrupt this thread but are BASE\BofE\LIBOR rate all the same thing?