Which mortgage do you think we should go for?

emmylou69

Option 1 - tracker 2 years @ 4.24% above B0E rate then reverts to SVR

Option 2 - fixed 4 years @ 5.84% then reverts to SVR

Option 3 - fixed 2 years @5.29% then reverts to SVR

85% LTV - mortgage of £175K

Which would you go for, and why? Need to make a fairly quick decision...
Affordability ok on all three, monthly payments manageable on all three.

All help appreciated :-)

emmylou69

Forgot to say, we are purchasing a house after renting for a while. Not remortgage.

getmore4less

SVR?
Lender?
Fees?

beecher2

Ability to overpay and ERC would matter to me too.

Squish_21

Depends on your circumstances. A little more info is required I think, as requested above by others.

Going by the info you've gave personally i'd want option 4 as its the longest fixed rate and I like to know what im paying each month, esepcially with rumours of interest rate rises.

emmylou69

Lender is Abbey, all three can be overpaid by up to 10% a year.
Redemption fees high - about 4k option 1, 5k option 2 and 7k option 3.
Free valuation and cashback of £250 "moving costs" on completion.
Fees £495, can be added to loan if required.

I prefer option 3 personally but wondered what others thought.

Thank you :-)

getmore4less

Can't see the point of 2 year fix yet.

Pay more now and only protect from rises for short time probably just long enough for them to hit you.

you pay but get nothing back