Tracker/Fixed soooooo confused!!!

Red2008

Hi

I've spent months trying to decide on what type of mortgage to go for and thought that I had finally settled on a tracker, but as it's going through I've started reading articles how rates may go up a lot quicker than we thought............I'm so confused, and more so since the elections!

These are my options;-

The lifetime tracker at 2.09% plus base rate which is fee free with no ERC

Or

I'm currently with Yorkshire building society on their SVR at 4.89% and
they can offer me a 5 year fixed at 4.99% which works out a few quid a month more than what I'm currently paying.


Situation;-
Loan amount £125K
House value £195-£210K
Income £43k
LTV approx 65%


With the tracker we could over pay by a minimum of £150/£200 a month.

Anyone with a crystal ball please reply or failing that any sound advice would be greatly appreciated. Thanks x

dimbo61

I am with the YBS on a 5 year fix at nearly the same rate but its an offset mortgage and I have been overpaying and building up savings in the offset account over the last 4 1/2 years!
now my deal reverts to a tracker at 0.75% above the BOE base rate 0.5% BUT its also got a 3% collar!
I needed the security of a fix at the time and am still happy with my decision as the interest part is important wether its 0.5% or 4.99% but at some time you also need to clear the debt( repayment ) part of your mortgage and offset gives you more flexibility.
Is the tracker with First Direct and also offset ?

Red2008

Thanks dimbo61, yes the tracker is with First Direct, I wasn't planning to go for an offset at the moment, we have a young family with only one income in at the moment so not a great deal to offset now! They are both repayment mortgages though.