FTB Need advice Please

nitin_malik

Good day,

I am a first time buyer looking at buying a house. I am looking at a 85% mortgage and have been offered a tracker at 3.99 above base rate for 2 years or a fixed rate for 3 years at 5.69%. The difference in the payments between the two options comes to about 200 pounds a month.

I can afford to make payments till the base rates goes up to a max of 2.5%.

Should i take the tracker or the fixed mortgage.

Many thanks for your help.

switched_off

Best of both worlds, take a tracker that you can switch to a fixed without penalty? You only have to pay an arrangement fee.

You didn't mention arrangement fee's, are there any?

nitin_malik

Many thanks.

The arrangement fees are 999 with a free valuation and cash back towards solicior fees.

switched_off

I think there is a Nationwide product that is 4.14 above base that you can switch to a fixed should you wish.

It dosn't have the free valuation and cashback that your current does though. If you are worried about your payments going up, this could be a good way to start? Why not ask your broker for an illustration and a little more detail.

The 3 year deal is interesting as i doubt you will be able to secure a 5.69% product in 2 years time. That said, the equity in your home will be greater allowing you to remortgage to a better LTV deal. Decisions, decisions.

No one on here is qualified to answer your question sadly.

Good luck.