Natwest Track & Switch mortgage?

SmlSave

Has anyone heard of this?

Apparently its a new tracker (3.59% for me) and after three months you can switch to a fixed deal if rates go up.

You get better fixed rates then as your classed as an existing customer.

I'm stuck between two options:

a) tracker at 3.59% then fix later at 5.09 for 5yrs - able to op 10% a year anytime

b) fix staright away for 4.99% for 4yrs - able to op 10% a year in January only

any thoughts would be great

Charterhouse

If you want to fix ultimately, I'd just take the fix now. I don't think rates are going anywhere for a year probably. But the real correct answer is this... It doesn't really matter. The £500 that you save over the 3 months with the lower rate pretty much exactly offsets the higher rate of the fix that you have to lock into over the remaining life of the fix.

SmlSave

Thanks Charter I hadn't thought of that.

The reason I like the thougth of starting with the tracker is that I could stay on it for longer - subject to interest rates - and overpay as much as I could with the safety net of being able to switch to a fixed. I also like the idea of being able to overpay something each month.

but then if I fixed straight away at 4.99 I'd be safe from any changes to the rates......

dimbo61

If you take the tracker are you guarenteed to be able to switch onto the 5.09% five year fix at any time ?
If so then after 3 months you are better off and if you pay the amount it would cost you to be on the fix you would then be overpaying until you JUMP !