Current mortgage deal coming to an end...

Haze

Hi all,

I am currently due to come to the end of a two year tracker which is .44 above the BOE base rate. I will then for the remaining term of the mortgage drop on to a tracker which is 1.0 above the BOE base rate.

I know this is a good deal at present and possibly the near future, but my current provider has offered me a two year fixed rate at 3.19 plus £599 fees.

I was just wondering what peoples thoughts are and what do they anticipate will happen to the BOE base rate in the medium/long term?

Thanks in advance

andrewmp

I'd say it would be pointless. Overpay the £600 you would have to pay as a fee and overpay each month taking advantage of your 1.5% rate. I'd say there is very little chance of you being worse off over 2 years.

getmore4less

On this deal 3.19% fix with fee what was the follow on rate?

Bet it was not base +1.0%

curlygirl1971

Hi Haze

Am no expert but there has been some talk (by various 'experts') of BOE rate remaining at 0.5% for most of this possibly rising at end of year. There is an article on it under MSE News.

The fixed deal is effectively going to cost you the equivalent of £25 per month over next 2 years (duration of deal)....and your mortgage payment would go up also.

Or you pay 1.5% until the BOE rate starts creeping up (which will mean an increase in your monthly payment but not as much as if you were paying 3.19%).

Is the BOE rate going to reach 2.19 (plus 1% tracker = 3.19%) in the next 24 months?.......could well do but perhaps not until towards the end of the 2 year period that your Bank are offering you. So it's possible that the banks deal could cost your more over the 2 year period.

Perhaps you need to run the 2 scenarios through a mortgage calculator so you have a better idea of the cost. I use Locoblades which can be found here in the forums....but there are others. I am a different person with a different mortgage in a different situation - but I wish my bank would offer me BOE plus 1%!

Good luck

Haze

Many thanks for the advice you have made me think about it all from a totally different perspective - cheers.

I think I best stay on the BOE + 1% and overpay and see how it pans out

Thanks once again!

Haze

getmore4less wrote: »

On this deal 3.19% fix with fee what was the follow on rate?

Bet it was not base +1.0%

Their SVR currently 4.24%

getmore4less

Haze wrote: »

Their SVR currently 4.24%

They are having a laugh

2 years at 3.19% they move you to 4.24% svr(likely to follow base at +3.75% a bit) from base +1%

with another set of fees(unknown) to change if you don't like the rate

Ask them for a base +1% follow on and if they say yes consider it.