The end is nigh!

getmore4less

devon123 wrote: »

getmoreforless - thanks, I think our posts crossed. So the percentages you have stated there indicate that even if the interest rate was 17.83 by the end of year 4 on the tracker, then I'd still be better off with the tracker? I think I've misunderstood...

Not quite, it would be a step change at year 4. from the low rate to the high rate.

Typicaly the rate will creep up, but the longer it stays low the higher it need to go to be worse off.

I use multiple http://www.whatsthecost.com/mortgage.aspx and feed the numbers across
So for the 1y calc
look at outstanding after 1 year feed that into a 4 year deal and make the outstanding amount the same as the 5y fix by changing the rate.


I am a fan of low cost offset trackers they tend to be the best option for those that can take a hike in rates and are currently overpaying, they reduce net capital paying interest faster than the fix and build up funds to buffer a rise if they go very high.

Those that can't take the hikes and will just delay the pain and end up with more fees if on the SVR and it is high.