Co-op five year fix/ First Direct tracker

maggiemayhem

My mortgage is currently 80,000 and the house is worth 300,000 and I are re-mortgaging.

I have been looking for what feels like a lifetime and have finally narrowed it down to

Co-ops 5 year fix at 3.99% 1000 fee First direct term tracker at 2.29% (+1.79) fee 100 (fee changed recently)

All other costs are much of a much.


ANY opinions/thoughts on this would be GREATLY appreciated!

maggiemayhem

Any thoughts?

getmore4less

Whats the current deal thats the benchmark for deciding to switch.

maggiemayhem

Currently sitting on lenders SVR of 4.75

_Andy_

Any ERCs if you want to exit the tracker?

maggiemayhem

there are none

maggiemayhem

I could afford it if the interest rates went up on the tracker. Given this is the five year fix worth considering?

michaels

Apparently if you open a co-op current account the fee falls to 600 (or possibly 400)

I have also been asking the same question but currently am on the more expensive offset tracker at FD which is more flexible as I can use an isa for repayment vehicle so another variable in the mix.

Pincher

From another angle:

3.99 - 2.29 = 1.70%

0.50 + 1.70 = 2.20%

So what you are saying to yourself is:

"The average BOE rate will be less than 2.20% over the next FIVE years"

Try getting somebody else to say it to you, and see if you believe him.

maggiemayhem

Thanks for all the replys.

Michael - From everything I have read the First Direct are really good. The offset would be really appealing if I had anything much to offset!

Yes Pincher I know its hard to believe that - "The average BOE rate will be less than 2.20% over the next FIVE years" but the more I read about the BOE base the more confused I get. A year ago who would have thought that the interest rate would have stayed at .5 for fifteen months and set to stay that way for at least the next few months. I know little to nothing about how these things work and I read an article that really shocked me! Predictions that the base rate might stay low for years!
thisismoney.co.uk/news/article.html?in_article_id=505931&in_page_id=2

dimbo61

How long do you want the term over ?
could you repay the mortgage in 5 years ?
I like the security of a long term fix but mine is offset with YBS so best of both worlds