Should I fix or not ?

mapbuild_2

Hi all,

First post user.

Unfortunantely I'm just over the 75% LTV.

My current mortgage deal expires the end of this month. I have had my appointment with the Halifax and HAD decided on the following -

+2.69% tracker mortagage fixed for 2 yrs, currently giving 3.6%. The product carries a £599 setup fee and early redemption charges.

My confusion now is , looking at the mortgage pages the Halifax standard variable is 3.5%.

Would you advise I go with the tracker or should I go standard variable giving me the option to change mortgage in the future should a better deal present.

Many thanks

Mark

redpete

Some of the lenders have recently increased their SVRs despite BoE rates staying the same - so there is a risk that the SVR will increase by more than the tracker rate would. Also, do you know that you would be able to get an SVR mortgage form the lender?

BTW, "fixed" usually means that the rate is fixed for the duration of the deal.

pwllbwdr

I'm not sure how a +2.69 tracker can be 3.6% - with base rate 0.5% a tracker like that should be 3.19%.

beecher2

pwllbwdr wrote: »

I'm not sure how a +2.69 tracker can be 3.6% - with base rate 0.5% a tracker like that should be 3.19%.

Yeah, 3.6% is the overall cost for comparison.

I don't see the point in taking out a 2 year tracker at the moment, particularly one so close to the SVR. I'd be overpaying as much as possible, trying to get below 75% LTV and seeing what else is out there, but obviously that depends on your LTV , salary multiple and credit rating.

Peelerfart

If you took the £599 setup fee and early redemption charges, and overpaid your mortgage then would be close to the 75% LTV figure, or would it make it reachable in the short term (assuming no further price falls ) ?