2 or 3 year tie in?

fidnhilly

argghh! Can anyone give me their opinions on this please. We are currently due to remortgage our second home. The mortgage is part repayment 29000 and part int only 36500 (the latter was taken for a deposit on a bTL and will be paid off when we sell that property)

We have decided to take our chances with a tracker & have been offered a 2 year tracker at base rate + 2.89, no fees, bringing our payments to £351 per mth or a 3 yr tracker base rate +2.99 no fees at £333.65. (as at todays date) We were also offered a lifetime +3.29 no tie ins but a fee of £799.

I cant decide whether to go for the 2 or 3 year one. rates are obviously going to rise but will I want out to get a better deal in 2 years time or be better tied for 3 years? I'm trying to anticipate the kind of deals that will be around if rates rise by a few percent in the next 2 years.

What would you do? There isnt much difference in the monthly payments & we plan to over pay as much as we can too. The other dilema is my deal isnt due to run out until April but i can secure these now for May or should I wait & see what deals are about in a month or so....or they might get worse!

any views appreciated

getmore4less

What is the follow on rate with those tracker deals?

What is the follow on rate with your current deal?

fidnhilly

the follow on rate for these are the same as my current follow on - SVR of 4.99.
thanks

getmore4less

fidnhilly wrote: »

We have decided to take our chances with a tracker & have been offered a 2 year tracker at base rate + 2.89, no fees, bringing our payments to £351 per mth or a 3 yr tracker base rate +2.99 no fees at £333.65. (as at todays date) We were also offered a lifetime +3.29 no tie ins but a fee of £799.

Are those payment right.

I think I would go for the 2 year discount tracker.

When rates go up I think margins will narrow on tracker.

fidnhilly

you can tell i've been looking at numbers too long! sorry, +2.49 above base rate for the 3 yr deal, payments at £335