Advice on remortgage

paul121_2

Hi,

First post, so please go easy!!

Am currently in receipt of excellent Halifax deal - tracker costing £750/month for around £150,000 mortgage (capital repayment deal).

House valued at £350,000 - so LTV top notch. Earnings £50,000 as a lecturer, perfect credit etc - currently over-paying mortgage to the tune of £1000/month have done so for past year.

Big question - another short term tracker or fix for 5 years??? I know its the $64 million dollar question, but would really value your thoughts!!

Thanks in advance

beecher2

Do you go onto the SVR of 3.5%? Might be worth sitting on that for a while?

paul121_2

I do go onto 3.5% - best sticking with that an hope for 5 year fix to come down?

beecher2

Or a HSBC lifetime tracker as it has no ERC?

paul121_2

I was just looking into lifetime tracker deals with First Direct - 2.59% no fee or 2.39% costing £499. Like you say no ERC. Would I have to swallow set-up costs, legals, surveys etc to switch.

Also if I was only 'using' the FD deal to buy time, I suppose the no fee option would be best, given that I would have to be on the tracker for over 3 years to see payback on a £499 outlay? by the way, I only have until 30 June (deal expiration date) to get a new deal, should I be getting this started now?

Thanks for your suggestions beech

Red2008

The First Direct deal at 2.09% + base rate includes free legal and free survey. I am also applying for it, but not sure whether I should be going for a 5 year fixed instead!!!

Thrugelmir

Stay put and continue overpaying. Make hay whilst the sun shines.

With overpayments of £1k a month you are making rapid inroads into your mortgage.

getmore4less

paul121 wrote: »

I was just looking into lifetime tracker deals with First Direct - 2.59% no fee or 2.39% costing £499. Like you say no ERC. Would I have to swallow set-up costs, legals, surveys etc to switch.

Also if I was only 'using' the FD deal to buy time, I suppose the no fee option would be best, given that I would have to be on the tracker for over 3 years to see payback on a £499 outlay? by the way, I only have until 30 June (deal expiration date) to get a new deal, should I be getting this started now?

Thanks for your suggestions beech

£150k @ 0.2% = £300 so less than 2 years.

paul121_2

Still not sure if I should opt for 2 year tracker or 5 year fixed. The First Direct lifetime tracker is an attractive 'buying time' approach (in the hope of a sub 4% fixed 5yr deal cropping up sometime in the future), but the package does not have free legals - only comes with free valuation - the cost of the legals need be factored in - anybody any ideas on cost for a remortgage.

2.39 = £499 arrangement fee

2.59 = £0 arrangement fee

should I stay with halifax at SVR 3.5% and hang on for the promised land of a 5yr fix at 3.99% (I am convinced it will come!!).

£150,000 mortgage - £350,000 house value so 40% LTV

stick or twist, I am losing sleep!!

phlash

If there's no ERC with the 2% range trackers its a no brainer.

Tracker.

paul121_2

I take your point Phlash - hold out on the lifetime tracker till the sub 4% 5yr fix comes on line, but the outlay on legal costs to switch from halifax to FD may cost more than sitting tight on halifax SVR at 3.5%, especially if the 5yr fix is here sooner rather than later - then extra set up costs. hope this makes sense?!